Marketing a small retail business has many challenges. Since the nature of the business is highly competitive, the owners are faced with tough times. It does not help that big retailers are also out to displace small retail businesses.
1. How to retain and get new customers
Probably the single biggest challenge to a retail business is how to retain customers and get new ones. There are many options now for consumers and customer loyalty is no longer the norm nowadays.
2. Expanding issues
Since most small retailers are pop and mom shops where the owner and his immediate family are running the store, it becomes a problem in terms of expanding the business.
3. Budget concerns
This may not be a real concern for big retailers but for most of the small retailers who make up the majority of the retail business, budget or where to get additional money is always a concern.
4. Ever-growing competition
Since the capital needed to start is not that big, opening a retail store is quite easy for a lot of people. This saturates the market for suppliers of goods and the cutthroat competition begins.
5. How to cover additional markets
Retail marketing is also focused on increasing the market exposure. There is a need to create new customer base but because of inherent limitations, it is difficult to achieve. The difficulty lies in not having the expertise as well as exposure to the new market in most cases.
Additional manpower means additional cost and it can take a toll on the finances of the small retail business. The thing about a small retail business is as the sales increase, you also have to increase manpower.
7. Survival of the fittest environment
With every small retail business wanting to get a fair market share, the competition becomes too tough. Those who could no longer compete are forced to close shop. This is especially true in the case of big retailers that literally killed many small businesses.
8. Funding issues
The need for additional funds comes into play for many reasons. It could be to settle obligations, to expand the business or procure more stocks among others. This is the problem for a lot of small business owners because banks and financial institutions can approve only a small loan amount and with higher interest rate in most cases.
9. Rising cost of rent
The rising cost of real estate rent is also one problem for a lot of small retail businesses.
10. How to innovate
Unlike manufacturers, the retail store owner must constantly innovate in terms of attracting customers. The store front must be dressed for the holidays or whatever event is forthcoming. This requires the owner to spend that is sometimes not recovered by the sales turn-out.
Retail marketing faces a lot of challenges indeed. In this line of business, only those who dare to innovate and combine tried and tested traditional concepts with modern developments have a chance to survive.