3 Ways Small Retailers Can Compete During the Holidays
The holiday season is a critical time for retailers. It’s when most businesses make a significant portion of their yearly profits. However, with the rise of e-commerce giants like Amazon and the expansion of big-box stores, small retailers face an uphill battle to capture their share of the holiday shopping rush. But don’t worry, there are ways for small retailers to stand out, attract more customers, and compete with the big guys.
In this article, we’ll discuss three powerful strategies that small retailers can use to compete during the holidays, along with actionable tips to help you maximize your success. These strategies focus on making your business more appealing, efficient, and customer-friendly, while also ensuring that you have the funds needed to run successful promotions and manage peak-season expenses. If you’re a small business owner in the retail sector, keep reading to learn how to boost your holiday sales!
1. Offer Unique and Personalized Products
One of the biggest advantages small retailers have over big-box stores is the ability to offer unique, personalized, and niche products. During the holidays, people are often looking for gifts that stand out or reflect a personal touch. This is where small retailers can shine. By offering items that big-box stores don’t carry, or adding personalization to your existing products, you can create an unforgettable shopping experience that encourages customers to buy from you instead of a large competitor.
How It Works:
Small retailers can partner with local artisans, suppliers, or even design their own unique products. For example, if you run a local jewelry store, you could offer custom engraving services on necklaces or bracelets. Or, if you own a boutique clothing store, you could create limited-edition holiday-themed apparel that customers can’t find anywhere else.
Personalized products are also a great way to build a strong emotional connection with your customers. For example, offering custom gift wrapping with your store’s logo, a handwritten holiday card, or even providing a personalized shopping experience can make a huge difference. When customers feel special, they are more likely to return year after year.
Who Benefits:
This strategy works best for small retailers who have the ability to source or create products that stand out. For instance, a small gift shop could specialize in unique home decor that isn’t sold in larger retail chains, or a local toy store could offer customizable gifts like personalized stuffed animals or wooden toys.
Even if you don’t make the products yourself, consider working with local artists or artisans to sell their goods in your store. Customers love buying locally-made items that reflect the spirit of the community, especially during the holidays.
Example:
Imagine you run a local coffee shop. Instead of just selling regular coffee beans and mugs like larger chains, you decide to offer holiday-themed coffee blends and personalized mugs with customers’ names or favorite quotes printed on them. You can also offer holiday-themed gift baskets with unique local snacks, creating a one-of-a-kind gift experience. This kind of personalization appeals to customers looking for gifts that are thoughtful and unique, ensuring they choose your store over the competition.
2. Create a Strong Online Presence with Click-and-Collect or Local Delivery
While many small retailers may feel like they can’t compete with the convenience of online giants, having a strong online presence is one of the best ways to level the playing field. The good news is that even if you’re a small store with limited resources, you can still create a solid e-commerce platform that complements your brick-and-mortar location.
One of the most effective ways to integrate online and in-store shopping is to offer click-and-collect (also known as buy online, pick up in-store) or local delivery options. This way, you can serve customers who prefer shopping from the comfort of their own home but still provide the convenience of local shopping for those who want to pick up their orders without leaving town.
How It Works:
Set up a simple online store where customers can browse your inventory, select their desired products, and either choose in-store pickup or local delivery. If your store doesn’t already have an online presence, platforms like Shopify, Square Online, and BigCommerce allow you to create an online store without breaking the bank.
When you integrate local delivery, ensure that it’s affordable, timely, and efficient. Offering same-day or next-day delivery within a specific radius from your store can be a huge selling point, especially for holiday shoppers looking for last-minute gifts.
Who Benefits:
Any small retailer can benefit from this strategy, especially those with a local customer base. Whether you sell clothing, food, gifts, or handmade goods, providing a simple online shopping experience can drive more business and bring in customers who may not have considered visiting your store.
This strategy is especially effective for small stores that already have a loyal local following. For example, a bookstore can offer local delivery for holiday shoppers who want to get a head start on their gift buying, or a toy store can use click-and-collect to make it easier for parents to shop for their kids.
Example:
Let’s say you own a local toy store that’s gearing up for the holidays. You set up an online store where customers can browse the latest toys, order online, and choose click-and-collect. They can pick up their orders in just a few hours, skipping the line in your busy store. Additionally, you offer local delivery for those who are too busy to visit your store in person. As a result, you’re able to capture both online and in-person shoppers, significantly boosting your sales during the holiday season.
3. Run Holiday Promotions and Partner with Local Influencers
During the holidays, shoppers are always on the lookout for sales, discounts, and promotions. Small retailers can attract more customers by offering holiday-specific promotions, such as limited-time discounts, exclusive bundles, or free gifts with purchases. When paired with effective marketing, these promotions can draw in customers who might otherwise spend their money at big-box stores.
But here’s the twist: small businesses don’t have to do it all alone. By partnering with local influencers, you can tap into their audience and increase your brand’s visibility. Influencers are people who have a significant following on social media platforms like Instagram, YouTube, or TikTok, and they can help promote your products to potential customers in a fun and relatable way.
How It Works:
Start by planning your holiday promotions early, so customers know about them in advance. You can offer flash sales, 24-hour discounts, or “buy one, get one free” deals. These types of promotions are particularly effective when they are exclusive to the holiday season, which creates a sense of urgency among shoppers.
To further boost the effectiveness of your promotions, partner with local influencers who align with your brand. They can create posts, videos, or stories showcasing your products and promoting your special deals. Influencers can offer special discount codes to their followers, creating a buzz around your products and driving more traffic to your store.
Who Benefits:
This strategy is perfect for small businesses that have limited marketing budgets but want to increase their visibility. Local retailers can benefit by partnering with influencers who have a local following and can reach people who live within a reasonable shopping distance.
For example, a boutique clothing store could partner with a local fashion influencer to promote their holiday sale, or a bakery could collaborate with a food influencer to showcase their holiday-themed treats.
Example:
Let’s say you own a bakery that’s preparing for the holiday rush. You run a Black Friday promotion offering 20% off all holiday-themed cupcakes, but you’re also planning a special offer for local delivery. You partner with a popular local food blogger who posts about your holiday sale on their Instagram account, complete with a picture of your delicious cupcakes. Their followers are encouraged to use a discount code when ordering online or visiting your bakery. Thanks to the influencer’s promotion, your store sees a spike in holiday orders, and your special offers are a huge hit.
How SVP Funding Group Can Help Small Retailers Compete During the Holidays
As small retailers prepare for the holiday season, having the right financial resources is crucial. The costs of running promotions, acquiring inventory, or offering special services like local delivery or click-and-collect can quickly add up. If you need funds to ensure that your business can stay competitive during the holidays, SVP Funding Group can help you get the working capital you need quickly.
SVP Funding Group specializes in short-term financing for small businesses, helping retailers access quick loans to cover holiday expenses. Whether you need to purchase inventory, run promotions, or expand your marketing efforts, we can provide you with the funding you need to compete with larger retailers during the busy holiday season.
Conclusion
Competing with larger retailers during the holidays may seem daunting, but small businesses have unique advantages that can give them the upper hand. By offering personalized products, creating a seamless online experience, and running effective promotions with the help of local influencers, you can attract more customers and boost your sales during this crucial time.
Don’t forget that having access to quick financing is key to managing these strategies successfully. With SVP Funding Group, you can secure the funds you need to make this holiday season your most profitable one yet.
Ready to take your small retail business to the next level? Apply for funding with SVP Funding Group today, and let’s make this holiday season a success together!
