For Immediate Release
November 12, 2004
LANSING — The Michigan Retailers Association (MRA) has joined more
than two dozen other state retail associations in unveiling "Challenges
of the Future," a new initiative to help independent retailers
across the nation.
In a world of more competitors, fewer old-line vendors and Internet-empowered
customers, small independent retailers across the country are facing
tougher challenges making a living. Challenges of the Future, a free,
new resource underwritten by the Illinois Retail Merchants Association
and George H Baum Community Charitable Trust of Morris IL in cooperation
with the National Retail Federation Foundation, was created to help
independents:
• identify major trends affecting retailing;
• understand the major obstacles in the marketplace that have tended
to lead to the failure of those businesses; and
• see strategies for success and locate resources to help them
implement them.
Available online at www.retail-revival.com, Challenges of the Future is a white paper articulating "new-solution thinking" strategies in a variety of operational areas for the survival of independent retailers. The paper was based on industry research and interviews with retail experts, as well as 17 case studies of successful merchants whose businesses exemplify the business opportunities outlined in the paper.
MRA plans to make Michigan retailers aware of the new resource through its website (www.retailers.com), Michigan Retailer newsmonthly and other opportunities, said Larry Meyer, chairman and CEO.
Among the survival strategies described in the paper are:
1) alternatives to traditional advertising methods, and how and why
it’s essential to gain additional market knowledge;
2) how to obtain merchandise in appropriate quantities at competitive
prices;
3) ways for small independents to keep up with the speed and overwhelming
nature of technology;
4) how to keep customers—and employees—happy!
5) how to stay a step ahead of consumers who are increasingly more knowledgeable
about a transparency of prices from a variety of sources;
6) how to become more adept at financial analysis, strategic planning
and other critical management issues.
Also available online is a substantial resource section of publications, websites, organizations, consultants and other information to help retailers implement the paper’s recommendations.
Some of the trends affecting retailers discussed in the report are:
1) the increasing amount and intensity of competition;
2) the impact of major demographic changes like the aging of America,
the growth of the Hispanic population and economic clout of the "Y
Generation" born 1981-1995 as the largest consumer group in U.S.
history;
3) the backlash against chain expansion in smaller communities;
4) the impact of soaring healthcare costs on retail businesses; and
5) the ever-blurring delineations between market segments and buyer
groups in the U.S.
"While there has been a tremendous amount of research done on the challenges facing national chain stores, nothing has been done on the small stores. Some of these challenges are significantly different for small stores," said Jim Baum, chairman of the Baum Community Charitable Trust and himself the third-generation owner of several retail businesses in Morris IL.
Baum’s foundation decided to initiate the paper because he believes the greatest challenge for his business and that of other small independents is "just seeing the opportunities beyond our four walls."
Detailed information about the report is available from Gary Rejebian, of the Illinois Retail Merchants Association, at 312.726.4600 x313 or grejebian@irma.org.
The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation’s largest state trade association of general merchandise retailers. MRA’s nearly 6,000 retail business members operate more than 13,000 stores across the state.
