In recent years, small businesses and retailers have faced numerous challenges, from the impacts of COVID-19 to inflation, tariffs, and shifting consumer habits. While the retail landscape has certainly evolved, there are still plenty of strategies to ensure long-term success. Fortunately, smaller retailers can adopt the tactics that large chains have successfully implemented. Here are a few ways you can rethink your approach and keep your business thriving.
Optimize Your Store’s Space
One of the first steps in transforming your retail strategy isn’t related to marketing or merchandising—it’s about rethinking how you use your store’s space. Many large retailers are downsizing their physical locations, but rather than just closing stores, they are exploring ways to make better use of their square footage. This includes:
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Reducing the size of their stores
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Finding innovative ways to use physical spaces
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Creating cooperative models for shared spaces that aren’t being fully utilized
Now is a great time for you to ask: “Can my store benefit from a similar approach?” If you’re renegotiating your lease, consider scaling down your store size to make your location more manageable and cost-effective. You could also look into alternative uses for your space. For example, you could partner with a local producer to offer fresh produce, or collaborate with artisans to host pop-up shops. Some businesses are even adopting cooperative models, where multiple vendors share a space. By diversifying your revenue streams, you can breathe new life into your physical location.
Revamp Pricing and Stock for Changing Needs
As consumer behaviors continue to evolve, now is the perfect time to reassess your merchandise’s pricing and availability. The pandemic significantly altered shopping patterns, especially in categories like apparel and accessories. Many small stores still have old stock that hasn’t moved in months, simply because it hasn’t been discounted. To regain momentum, try the following:
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Move Out Old Inventory: Don’t let stagnant inventory take up space. Clear it out, even at a discount, to make room for fresh items that will attract customers.
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Introduce What Customers Want: Consumer needs have changed, particularly as more people work from home. Look into adding items that cater to new hobbies and interests—like cookbooks, craft supplies, or home improvement kits. Staying updated on current trends, such as through platforms like Pinterest or Shopify, can help you stay ahead of the curve.
Maximize Your Store Windows for Marketing
Your store windows are one of your best assets in driving foot traffic and sales. Have you noticed that more people are venturing out for shopping or dining? Depending on your area, people may be eager to visit stores again, and your window displays can play a big role in attracting them. To make the most of your windows, consider these tips:
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Use “text-to-buy” options to make it easy for passersby to make a purchase without entering the store.
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Include clear signs explaining how customers can buy from the window—whether it’s through a call, online order, or pick-up service.
Stores that pivoted quickly to these strategies during the pandemic saw significant sales boosts. Even though the retail environment was tough, these businesses maintained steady sales by adopting flexible and creative approaches.
Stay Ahead by Embracing Flexibility
As a retailer, it’s crucial to recognize that the retail world is far from returning to normal. The commercial real estate market is still adjusting, and we’ll likely see more stores closing. However, there will also be opportunities, especially for retailers who have adapted and developed smarter strategies. Those who embrace creative merchandising, innovative space usage, and enhanced customer service will be better positioned to negotiate favorable leases and rents.
Now is the time to get inventive. Consider how you can update your merchandising and use your store’s space more effectively. Invest in staff training to ensure your customer service is top-notch. These steps will help you make the most of the online-to-offline selling methods and rebuild your business.