Walmart Coming To Warrenton... Little Guys Doomed?
It was announced made public a few months ago that a new Walmart store would be coming to Warrenton, Oregon near Marlin Avenue. Immediately mixed reactions were spouted from every local media outlet: print, radio, tv and the blogosphere. Some supported further development in Warrenton, others said Astoria should take note and create a more business friendly environment, and yet course others were strongly opposed. No matter what opinion you might have it's pretty much a done deal the store will be built (on a triangle of land between Hwy 101, Hwy 105 and Marlin Ave) and it's time to get real and be ready for the world's largest retailer in your own backyard.
Compete on value, not price.
The first thing that local business owners must understand is you can't compete with a Walmart or Target type store on price. Due to the huge buying power of Walmart they are able to negotiate and purchase directly from the manufacturer, and the volume they purchase is large enough as a single source to greatly impact revenues for the manufacturer so they (the manufacturer) are more willing to discount prices to meet Walmart demands. I think it's also wrong to assume that a 'big box' retailer such as Walmart means automatic doom for small businesses in the area. For example Walmart sells jeans for $20, but Nordstrom sells jeans that cost over $200. When Walmart moves into an area it doesn't put Nordstrom out of business because the two have a much different consumer. The Walmart customer shops price only, while the Nordstrom customer values service and quality. Price is likely a consideration for the Nordstrom customer as well, but not the most important factor when making a purchase.
Kick it up a notch.
In our free market society small business must innovate, improve service and give their customers more of what they want to survive and prosper. In the case of a Walmart opening, I think it's even more critical to evaluate your consumers wants and needs and make sure you can deliver. The coming Walmart will likely push some small businesses in the area over the edge, but to make the assumption that all small businesses in the area competing with Walmart will go out of business is an insult to our small business owners. Warrenton business owners should take the coming Walmart as an opportunity to evaluate every aspect of their business and the make necessary changes to improve and streamline operations with the goal of retaining customers and improving revenues. Speaking as a consumer some small businesses do a great job of making customer satisfaction a top priority, while others could use some improvement. If I enter your place of business and feel unwelcome or that I'm bothering the clerk with my pesky purchase I may go elsewhere. However if you know exactly what I need when I walk in your door, and have a knowledgeable and friendly staff why would I ever go any place else?
This is not our first rodeo.
Each time a new large retailer has setup shop in Warrenton I have heard that small locally owned businesses are done. Wiped out. Might was well close shop now, it's inevitable... Yet each time a Fred Meyer, Costco, Walgreens, Starbucks or the like have opened in Warrenton the locals have stepped it up and carried on. Some local businesses have likely seen a decline in revenue and even lost some customers with each new store that opens but that's how business works. You must innovate or die. Don't find a niche, define it. I think going forward Warrenton business owners will innovate, survive and prosper no matter who comes to town. Besides, Walmart fills a niche too: Where else can you buy underwear, ammunition and a spark plug all under one roof?