Purchasing Resources for Department Stores

Competing With Major Department Stores

How to compete against department stores and chain stores
By Romy LeClaire Loran, Freelance writer If you're like many small businesses, the influx of new or expanding department stores in your area as well as their growth on-line can cause some anxiety. Their buying power may be greater than yours and their pockets for marketing may be deeper. In order to compete, consider the following questions:

1. Are you providing a service to a niche market not found in even upscale department stores?
2. Are you appealing to tourists and to Internet customers that mall department stores may be missing?
3. Are you making your customers feel more rewarded than a department store chain?

To compete against major department stores, identify and appeal to a niche market

You can provide services and items the large department store chains cannot by knowing which services and items might appeal more. Also, customers may be willing to spend more money if they know their purchases are of a quality or type they can't find at the department store chains.
Try:  If you're interested in targeted marketing, Nielsen Claritas (The Nielsen Company) will assist you in studying the demographics of your area. As well as subscription products, it offers some free and trial services. If you're interested in knowing how others have faired when competing against the list of department stores that's continuously expanding, try some networking of your own. The U.S. Small Business Administration offers many resources, including links that can help you find a mentor.

Appeal to tourists and on-line customers who may want to avoid mall department store outlets

Tourists can shop just as easily in a department store as a boutique. If you live in an area with tourism, take advantage of the influx of tourists by knowing when events are going to take place and then by offering your out-of-town guests a quality on-line shopping site when they are no longer in your area.
Try:  Eventful, Inc. is an on-line site that coordinates events and people. By plugging in your zip code, you can see what events are happening in your area. If the visiting tourists want to continue to shop from your store, but want to do so on-line and your website needs some work, WebDesigners-Directory or Website Designers List can help you find a website designer. You can search among the thousands of designers listed by location and budget. 

Make customers feel rewarded; a personal touch is something a department store chain can't provide

Many business owners wonder how they can compete with the noise, bustle and excitement of mall department stores. As every child who leaves the dentist or doctor's office with a trinket knows, life is more fun with rewards. Consider rewarding your customers and their patronage with loyalty cards and promotional items.
Try:  Plastic Printers.com, Inc. sells loyalty cards you can use with your customers, as does Safe-Card ID Services, Inc. ZIH Corp. offers its line of Zebra card printers you can use to make loyalty cards in-house. Target Marketing can help your customers feel special with on-line incentives and rewards, as well as promotional products, including an eco-friendly line.

• Get to know your competition by keeping a list of department stores that compete against you. Check their websites often to keep abreast of changes they are making.
• Read arts council, chamber of commerce and other local development and publicity publications and online sites to plan for upcoming community events.
• Support community philanthropic and educational events to generate good will.

---