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Posted: 5:02 p.m. Friday, Nov. 23, 2012
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By Everdeen Mason
Big box retailers have a clear advantage with shoppers on Black Friday, but communities have started to back small businesses as go-to places for thoughtful gifts and better customer service.
Small Business Saturday is a newer holiday shopping occasion wedged between Black Friday and Cyber Monday, and a chance for independent businesses to make up ground.
According to the Ohio Council on Retail Merchants, Ohio is expected to see more than $14.6 billion spent in November and December this year. But online retailers threaten to take $137 million of those sales, meaning small businesses have even more competition.
Local business experts are confident small businesses are gaining more clout with consumers.
“One thing you’ve seen that’s not limited to Springfield is that there has been a national phenomenon in the past few years where people’s reliance on big box stores and retailers has started to shrink,” said Chris Schutte, director of the Clark County Convention and Visitors Bureau for the Greater Springfield Chamber of Commerce.
Schutte cited the growth of farmer’s markets, shoppers’ desires to know where their products come from and “buy local” efforts.
“There’s been a real groundswell for that that plays really well to small business as opposed to large box scale retailers,” he said.
Sara Kerns is the co-owner of a retailer of home goods in Urbana called Guild Galleries. She said the business has thrived primarily through word of mouth in the community.
“We definitely find that people do want to support local businesses whenever possible,” she said.
Demand in Springfield has also allowed a number of small businesses to open up in downtown — including Running with Scissors, Dollar Days General Store, Fair Trade Winds and Champion City Guide and Supply.
While people like the idea of buying local, often the price could deter them.
“Box stores do have a big advantage because they buy items at such big volumes,” said Mark Keating, loan program manager at the Small Business Development Center. “In many instances, they could retail products less than the small business guy can buy it for.”
Keating says because of this, many small businesses he works with choose not to focus on holiday season.
In New Carlisle, the local chamber held a special day for businesses to stay open late to promote smaller businesses and kick off the holiday season.
And groups such as the state council for retail merchants helps provide data for businesses to use.
The Ohio Council on Retail Merchants teams up with the University of Cincinnati yearly to compile reports on state and metro holiday spending, said Gordon Gough, vice president and COO of the council. He said larger stores often have their own research departments.
“But by showing statewide what holiday spending will be, it gives smaller members an idea of what they can expect,” Gough said. “We’re trying to give our smaller businesses tools to help them be successful.”
Supporters say small businesses’ one true advantage is the level of customer service they can provide.
“A small store has the expertise, they can get questions answered,” Keating said. “And while they struggle a lot with this issue of price competition with large retailers, the knowledge is worth more on the price.”
Schutte said small business members of the chamber feel this is their advantage.
“When we talk to our small business members with the chamber, they’re starting to feel that the tide has turned,” Schutte said. “Now, if they can be an expert and can provide a high experience level, they are keeping up.”
Guild Galleries has thrived for 40 years using this premise.
The holiday season is a big time for walk-in traffic, although the key to holiday success is building relationships through the year, said Sara Kerns, co-owner of the store.
“It’s about making friends, giving them as much service as possible,” she said. “We keep record of what people like, so when we get a new product in we call them.”
The business focuses on home merchandise ranging from jewelry and candles to furniture and lamps. Kerns said the store also can do custom work and special orders for customers.
“We are just building relationships all year, and then we carry extra inventory during the holiday season,” she said.
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