  |
Update Jan 1 2025 Happy New Year
Happy New Year !
Wishing you all the best in the coming year
I have penned a few Money Matters articles on those big box stores and the little mom and pop local stores we all like to support and how they coexist with each other.
The first article centered on the idea the big box stores like Costco, Walmart, Home Depot and Lowes were killing the small local stores in neighborhoods around the country. The reasons were lower overhead cost per purchase, better selection, ease of access (the one stop shopping experience), of course, price.
The subsequent article a few years later turned the tide on the big box store with the subject being that they themselves were now dealing with their own threat of existence because of the online retailer Amazon.
Some big box stores were slow to react while others like Walmart, Target, and others took a quick lesson from Amazon and started their own online services.
The big box stores also had an advantage. Buyers could actually view the item at the store. When shopping online, this was not possible.
Amazon countered that concern by implementing a no-questions asked, super easy return policy.
When CoVid arrived and the governments of the world decided to implement shutdowns of just about everything, this further exasperated the plight of the in-person shopping experience and put even more pressure on local establishments. As the shopping environment has progressed along, the mom and pop stores, those that survived that is, did have a leg to stand on, albeit a wobbly one.
We found out that people care about their local stores and many didn’t mind paying a few pennies extra for the local experience. Many mom and pops met their shoppers half way with price concessions making sure the “few extra pennies” didn’t turn into “many extra dollars” as people still have to watch their budgets. The severe inflationary pressures of the last few years obviously hasn’t help local stores to keep the doors open but they are a stubborn bunch as well as some of their local supporters luckily are a compassionate bunch.
That being as it may, some local vendors resist dropping prices and rely on the local shopping experience as something no online retailer or big box store can compete with.
For some store owners however, how to compete with the large corporate outlets still eludes them.
I once shopped at a small store in my local township Nevada City that was tucked away in a quaint hallway like shopping area in an historic old building that had only a few small stores in it.
The area also contained a Persian Rug outlet, a gourmet chocolatier as well as a few other specialty shops. The historic building environment and the tucked away shops offered a somewhat magical experience so I frequented a small gift boutique during birthdays, Valentine’s Day, and Christmas. The store was very small, had a very limited selection and the prices were high, but I liked the owner, wanted to support the shop and was always warmly welcomed.
After shopping there three or four times a year for more than a decade, I bought my wife a blouse there one day and when her birthday arrived, the wife tried it on. Me, being a clueless husband when it came to sizing, had of course bought the wrong size. I should have known better than to try and buy clothes for the opposite sex but I felt brave that day so what the heck.
In any case, the blouse didn’t fit so I went back to my little boutique and asked if the owner had a larger size. The owner said no and when I asked for a refund, she said the store policy was on a credit. Yea, I know this is the policy of many a store but seeing as I went out of my way more times than I would care to shop there and support her, she still refused to refund my money and stuck to the credit offer. Seeing nothing else, I gently reminded her that I would of course be back but would prefer the refund, she stuck to her guns. I thanked her and left the store and never returned.
In conclusion, our local shops are a great place to engage with our neighbors, make a pleasant day of shopping and walking the town and supporting our small town purveyors. But there is a give and take that should always be considered by the small shop owner. Don’t act like a big box or mega store with stringent policies that can’t be bent because you’re too focused on the almighty buck. We shop there because we’re neighbors, so treat us as such.
“Watching the markets so you don’t have to”
(end)
(As mentioned please use the below disclaimer exactly) THANKS (Regulations)
This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services. Email: news@moneymanagementradio.com
Call me (530) 559 1214
