Local business can survive in the shadow of the elephant if it plays it smart, according to a leading retail consulting, marketing, and research firm.
John C. Williams of the Williams Group told a group of 130 representatives of local businesses at La Place Rendez-Vouz yesterday morning that their fate largely was in their own hands—and the key to success was paying attention to what already works.
The three-hour seminar, entitled “How to do business in a Mal-Wart environment,” was attended by people from throughout Rainy River District and across the border from International Falls to Baudette.
“We are in a new environment and the secret to success is to do what you do best,” said Williams.
He noted while the giant “box” stores can handle large volumes at generally lower prices, the small indigenous businesses must focus on their niche markets—those which largely will be ignored by the big stores.
Linda Plumridge, office manager for the Fort Frances Times, one of the sponsors of yesterday’s seminar, said it’s important for local businesses to be able to adjust to the changes that will take place should Wal-Mart move in here, as expected.
“We want our customers to survive and thrive in this new environment,” she said.
A good portion of the Times’ advertising revenue comes from district businesses that have been around for decades. Some of these could be vulnerable to a “big box” retailer.
“If our customers thrive, we thrive,” she added. “We want them to continue.”
Most of those on hand yesterday seemed to feel they will be able to compete with Wal-Mart. Ted Debenetti, owner of A Buck or Two on Scott Street, said he thinks he can make a go of it as long as his business neighbours also survive.
It all comes down to traffic flow.
“Oh yeah, I’m going to make it,” he predicted. “I just want everybody around me to do well too because that’s where the traffic is.”
Debenetti said he felt if enough businesses went under, not only would the traditional customer traffic dry up, but property values for the survivors would plummet.
Jim Jackson of Sight and Sound agreed. He feels he can beat the big boys in certain specialized areas.
“We have better service,” he claimed. “Especially in the lower end and after-market areas. I mean, who else will come over to your house to install a VCR for you?
“Not Wal-Mart, for sure.”
The key, said Jackson, is to be more competitive and not worry about things over which you have no control.
“We’ll just have to be more competitive,” he explained. “Just run a good, tight ship and you’ll be fine.
“My take is Wal-Mart is kind of like death and taxes—it’s there and it’s not going away,” he quipped.
Someone who wishes it would go away is Kim Metke, owner of the Pharmasave at the corner of Scott Street and Mowat Avenue, who has filed an appeal with the Ontario Municipal Board to block a re-zoning of a lot on King’s Highway that Wal-Mart is eyeing.
He said he recognizes Wal-Mart has a magnificent record of success, but he has some concerns about its marketing practices.
He feels if the giant store moves in and ultimately decides it cannot make a go of it here, it will pack up and leave—but not before driving the existing businesses under.
“That’s a big concern to me,” he said. “From what I understand, they’re a totally predatory company.
“My biggest concern as a pharmacist is they have special deals with their suppliers,” he added. “They can buy on consignment and they absorb their dispensing fees.”
Metke said he probably could survive in such an environment, but he has concerns about other businesses. Like Debenetti, he believes if other businesses go under, it will be more difficult for the survivors to flourish.
Still, he felt yesterday’s seminar was a useful exercise in survival strategy.
“It thought it was quite good,” he concluded. “I just hope it isn’t necessary.”
Fort Frances Times
Local News from Across the Rainy River District
