DollarDays International president Marc Joseph tells how to “beat Wal-Mart”
Although small, independent retailers can’t expect to compete with Wal-Mart Stores Inc. on commodity item pricing, they can out-perform Wal-Mart in the merchandising of unique products that don’t fit into the big-volume purchasing policies of big retailers, Marc Joseph, president and COO of Internet-based wholesaler DollarDays International, says in a new book, “The Secrets of Retailing or How to Beat Wal-Mart”.
Joseph, a former merchandising executive with Federated Department Stores Inc., says local retailers fail when trying to compete against Wal-Mart by offering ordinary merchandise that Wal-Mart can usually sell at a lower price. “Let`s admit upfront that there may be some truth in the low price complaints for run-of-the-mill goods because it is true that the giant discounters do buy them at lower prices than any independent can obtain,” he says. “However, when it comes to more specialized and not necessarily more expensive merchandise, Wal-Mart and the other giant discounters are actually at a disadvantage to the small retail store.”
But while Wal-Mart can buy in large closeout quantities, it can`t to afford to buy in small quantities, which give independents the huge advantage of selling opportunistic products showing great value, Joseph says. In addition, because of a limited supply of unique and different items, Wal-Mart and other large chains can`t buy them in sufficient quantity, leaving the small, independent merchant a chance to offer different merchandise, Joseph says.
Joseph adds that small retailers can also operate with lower overhead costs and more personalized service. “None of this is to say that the discounters do not offer serious competition,” Joseph says. “Of course they do. The point is that, contrary to the complaints you hear from retailers driven out by Wal-Mart, even the largest, most aggressive discounter is nowhere near strong enough to stop a small retailer who knows what it’sdoing.”
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