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Surviving the Low Prices at the Big Boxes

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This week I stopped into my local big box pet store to see what they were selling and for how much. As usual, I spent a few minutes staring at the guinea pigs too, plus the bizarre hairless rat that was there. I wouldn’t have noticed the rat, except as I walked by the tank a little boy pointed at it and said, “That’s disgusting.” My final analysis: weird, but very soft looking and kind of cute.

But I digress. I was pleased to find that the high-end cat food I buy at my local independent shop was priced exactly the same at the big box store. Kudos either to my local store for pricing as low as possible or to the manufacturer for not allowing big boxes to undercut independents.

What struck me, though, was how many apparel choices the big boxes have now, and how cheap the pieces are. Right near the entrance was a huge display of probably 40 to 50 pet sweaters, dresses, shirts, etc. Above it was a sign that said “Everything on this rack, $3.99 and under. Limited time.”

How can an independent pet boutique compete with that? I didn’t recognize any of the brand names on the rack, which I imagine means the manufacturers are either mass-market only or private labels for the store. But I didn’t see any obvious manufacturing flaws and the styles were almost all very attractive. What’s a boutique to do when a dog owner can walk into a big box store to buy crickets for her daughter’s gecko and pick up a sweater for Fifi on the way out for under five bucks?

The most significant thing for me, though, was that although I was in the store for about 30 minutes, no one approached me the entire time. When I had a question, I couldn’t find a staff member other than the gentleman running the register to answer it. This is a clear advantage that you boutique owners have. Making people feel at home and welcome in your shop is easier with less traffic and less floor space. Plus a lot of you run your shops on your own, so you know the products inside and out.

Two things are very clear to me as integral ingredients for boutique success at this time, especially in this tough economy when many customers are more motivated than ever by low prices. Boutiques must maintain their excellent customer service, and if they don’t currently offer it, they should. Also, it seems that depending exclusively on apparel, which is becoming more widely available in cheaper incarnations, would be unwise. Only you can determine the proper mix of inventory for your store, but adding other items in addition to apparel, preferably unique things that can’t be found anywhere else locally, would seem to be a smart choice. Offering customers the service that makes them feel special and the items they can’t get elsewhere may help you to hold on to your share of the market.

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