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Did The Pandemic Launch An Indie Revival?

The novel coronavirus pandemic led to many changes in consumer habits. A recent Fast Company article by Max Rhodes asserts that one of those changes is a greater customer penchant for shopping from independent retailers.

Lockdowns, social distancing and other elements of the pandemic, according to Mr. Rhodes: “re-emphasized what makes [independent retailers] so resilient: the power of human connection, the thrill of discovery, and the advantage of agility.” The pandemic requiring people to remain isolated from one another generated a nostalgia and longing for a “more intentional way of life,” with research from Forerunner anticipating an increased focus on simplicity in the coming years. The independent retail experience caters to these renewed values.

Consumer appreciation for mom-and-pop businesses and the sense of community they create could be observed well before the pandemic. Some enterprise-level players in the industry acknowledged the importance of small businesses, as seen in American Express’s 2010 launch of Small Business Saturday to promote shopping at independent businesses the day after the most major U.S. retail holiday, Black Friday.

At the same time, throughout the 2000s and into the 2010s, a few major big box retail chains in the U.S. developed a negative reputation for having the perceived opposite characteristics of what was associated with mom-and-pops: undifferentiated customer experiences, uninteresting or insufficient assortments and un-engaged, underpaid staff.

In at least one retail segment pre-pandemic, mom-and-pops were already seeing an influx of customer interest as the big chain in the same vertical flagged. Independent bookstores, as far back as 2015, began seeing increased sales and a groundswell of traffic, and the industry launched an Independent Bookstore Day holiday to promote and celebrate shopping bookstores outside of Amazon.com and Barnes & Noble.

Some indicators, however, point to the industry moving in the opposite direction of what Fast Company expects to see. A recent UBS report, pointing to 40,000 small retailers closing over the past decade while 17,000 chain stores opened, anticipates that trend continuing with major players in dollar store, discount, mass retail and home improvement continuing to expand their national footprints.

BrainTrust

"You bet it did and it's about time. Why should consumers settle for more of the same when there are new merchandise and experiences to be had?"

Georganne Bender

Principal, KIZER & BENDER Speaking


"Like with all other things, COVID-19 acted as the great accelerant for a shift to independent retailers. Will it continue? Yes, I think it will, but at a slower pace."

Paula Rosenblum

Co-founder, RSR Research


"Human nature would indicate that consumers want to support their local businesses, especially outside of very large cities."

Bob Amster

Principal, Retail Technology Group


Discussion Questions

DISCUSSION QUESTIONS: Do you agree with the analysis that people visit and support local retailers more because of the pandemic? Will we see more or less support for independent retail in the future as things continue to normalize?

Poll

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Neil Saunders
Famed Member
11 months ago

The pandemic definitely drove more people to shop local and indie. Some of that has stuck. However it isn’t simply because of the pandemic, people being at home more, or shopping closer to home. It is also the result of the great experience at many independents: personal service, interesting ranges, nice stores. There is a bit of a “blandification” in chain retail and local retailers are an antidote to this.

Paula Rosenblum
Noble Member
11 months ago

Like with all other things, COVID-19 acted as the great accelerant for a shift to independent retailers. Consumers would prefer to buy localized curated assortments and support our economy, and rents were lower because “the big guys” abandoned certain locations.

Will it continue? Yes, I think it will, but at a slower pace–and of course it’s imperative that independents stay price competitive to continue their move.

Bob Amster
Trusted Member
11 months ago

Human nature would indicate that consumers want to support their local businesses, especially outside of very large cities. Once business and the health environment have normalized, and provided that the independents do offer a better all around experience (quality, service, familiarity), consumers will continue to support their local independents.

Scott Norris
Active Member
Reply to  Bob Amster
11 months ago

If anything, it’s even easier inside cities to sustain independent merchants, as the pool of nearby customers and staff is so much greater, as well as availability of diverse retail space and media to employ. From the recent Walmart discussion, they may have sterilized the countryside but can’t penetrate metro areas – allowing indy-friendly ecosystems to still thrive.

Dion Kenney
11 months ago

It’s an interesting dichotomy: the pandemic increased consumers’ reliance on and comfort with online shopping, AND increased their appreciation for independent retailers. Where indies have the edge is where the shopping experience is part of the appeal. Adding an immersive element, a customer service aspect, a gamification component, or a treasure hunt experience can lend itself to a meaningful differentiation from both online and chain store shopping.

Dave Bruno
Active Member
11 months ago

People have always responded to authentic and personalized experiences. The pandemic likely raised the importance of those experiences for many of us, and we returned to the stores that fulfilled those expectations, whether they were chain stores or independents. I don’t expect that to change.

Carol Spieckerman
Active Member
11 months ago

The preference for local, independent retailers ebbs and flows but never really goes away. The pandemic had consumers reevaluating all kinds of decisions, including where to shop. A number of pandemic-related factors converged to benefit some small retailers: consumers seeking connection, sympathy for COVID-era losses among local retailers, favoring easy-to-navigate, smaller-footprint stores, and more. Going forward, as technology and automation play a larger role with the big guys, some consumers will swing even harder back to local retailers.

Gary Sankary
Noble Member
11 months ago

Like other trends the pandemic accelerated small retail, but the trend was in place before lockdowns. Housing prices in walkable neighborhoods in cities and small towns have been skyrocketing for a while. The trend, especially for younger consumers, has been to reject their parents’ suburban, auto-centric lifestyle. With the move to “cozier” neighborhoods comes better access to small businesses and local shopping districts. Price is still a powerful value prop, but service and not having to drive to a regional center and park also has a strong appeal, and I think we will see this trend continue.

DeAnn Campbell
Active Member
11 months ago

While affinity for local stores may have grown during the pandemic, their continued popularity is not so much proximity as it is product selection and service. Most large chains have optimized their product down to a common denominator in efforts to make their supply chain cost effective. Consequently shoppers are seeing pretty much the same stuff whether they are at Amazon, Walmart, Lowe’s, Home Depot or other major retailers. Only the smaller local stores still carry unique or higher quality products, and serve it up with a smiling employee rather than pushing you through an automated self-checkout.

Bob Amster
Trusted Member
Reply to  DeAnn Campbell
11 months ago

Those ARE the qualities of the independent, local merchant that endears them to the local consumer community. You said it!

Georganne Bender
Noble Member
11 months ago

Did the pandemic launch an indie revival? You bet it did and it’s about time. Why should consumers settle for more of the same when there are new merchandise and experiences to be had?

We talked earlier this month about retailers boring the heck out of customers and the BrainTrust agreed that they are. Retail right now IS boring and it was boring before the pandemic. Independent retail stores can’t afford to be boring because the store owners have real skin in the game. Their livelihood depends on thrilling customers and they know it. Maybe more importantly, they respect that and their customers.

Brian Kelly
Brian Kelly
11 months ago

Millennials were raised on the long tail. It’s what they know. It’s in every grocery aisle. Choice rules!

Melissa Minkow
Active Member
11 months ago

I think a core element of the gravitational pull towards local is also convenience. The inventory struggles and temporary closures big chains experienced during the pandemic certainly forced many consumers to explore what was available nearby. This forced exploration has stuck for many, which is a great thing.