4 PCSR 07-14-1994 - Laserfiche WebLink

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4 Larger Cltle� At the time of this study, there were few Wal-Mart stores in cities above 50,000 population in Iowa, although they are currently entering. There were only two areas where the cities appeared to be affected by Wal-Mart stores in the surrounding areas. General merchandise sales were down nearly eight percent and grocery store sales were down nearly three percent after three years of Wal-Mart stores. The apparent major reason for these reductions is the strong presence that Wal-Mart stores make in outlying communities, causing local residents to make fewer trips to the cities to shop. Strategies for Co-existing in_ a_ Vital-:dart Environment Many small retailers will need to develop new business strategies after a Wal- Mart store opens in their area. The following suggestions are based on extensive observations in Iowa and study of situations in other states. Assess Your Attitudes and Actions. In general, it is best to take a positive attitude toward the opening of a new Wal- Mart store in your area. The following thoughts are offered in this regard. • In a free enterprise economy, all firms are free to compete. • Recognize that a Wal-Mart store will probably enlarge your town's retail trade area size. • It is possible to co-exist in a Wal-Mart environment. • You may need to change your methods of operation. Develop Superior Service. Superior service can become an important competitive advantage for many • smaller businesses. Large chain stores usually don't have the flexibility to offer many of these services. • Emphasize expert technical advice. • Offer deliveries where appropriate. • Offer on-site repair of certain items. • Develop special order capability. • Offer other services needed by customers. Manage Your Inventory Better. • Try not to handle the exact same merchandise. • Look for voids in Wal-Mart's inventory. • Try to handle complementary merchandise. • Find a niche that you can fill. • Consider upscale merchandise. Improve Your Marketing. • Extended opening hours are a necessity! • Look for ways to improve your returns policies. • Sharpen your pricing skills. (Eg; lower prices on items that people purchase frequently or tend to know the price) • Focus your advertising. Stress your competitive advantage. Make Customer Relations Top Priority. • Make sure that customers are "greeted." • • Offer customers a smile instead of a frown. • • Make employees "associates" and train them often. • Solicit complaints.