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#Written by David Tam, 1996. #
#davidkftam@netscape.net Copyright 1999#
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David Tam
Tuesday, October 8, 1996.
Business Press Review
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Strauss, Marina. "Corner stores feel competitive squeeze". The Globe and Mail.
Thursday, October 3, 1996. ------------------
The future of corner stores looks grim as sales have slowly decreased over
the years. The presence of big chains (such as Wal-Mart), longer hours of
operations of supermarkets, the end of the Sunday shopping ban, as well as
competition from drug stores and gas stations have contributed to the declining
conditions. As a result, companies such as Silcorp Ltd (Mac's and Mike's
Marts), Becker Milk Co., Southland Corp. (7-Eleven chains), Alimentation
Couche-Tard Inc. (Quebec), as well as the family-run corner stores are
scrambling to make changes that reflect the current market scene. The big
companies are merging in hopes of cutting costs and gaining overall efficiency.
New marketing strategies are being used to lure consumers away from the
competition, which has engulfed the market, and into the corner store. Some
are trying to change the atmosphere by offering cappuccino, fresh muffins,
bagels, pastries, sandwiches, magazines to browse, and tables for sitting.
Other new items include fresh as well as prepared foods, cheaper private label
goods, transit passes, postal services, bank machines, and fast food.
Many variety stores, both family-run and chains, have not been keeping up
with the changing market scenes. Many remain places of "last resort", where
consumers go only in times when everything else is closed. As a result, these
stores are not well-maintained and have uncompetitive prices. Some variety
stores are now turning into "destination" places, where people can go to have a
cup a coffee, a fresh bagel, browse through magazines, and pick up a loaf of
bread when they leave. These owners are hoping that the relaxed cafe
atmosphere will entice consumers. In terms of marketing, the goal of the
change in atmosphere is to attract a new market segment, women and aging baby
boomers. Traditional, the market has been 18-35 year old males.
Along with the new marketing strategy, some variety stores, such as Mac's
and Mike's Mart taking advantage of scanning technology to electronically keep
track of inventory, trace consumer shopping patterns, and respond to demands
quicker. In this way, owners can gain the competitive advantage by catering to
customer needs in the timely manner. These stores will be much more dynamic
than their counter parts.
I think that these new ideas being implemented in the typical, small
variety store show us how small businesses can easily find tremendous
opportunities in existing areas of their market. This fact was mention in last
week's lecture. Just because competitors such as Wal-Mart, or the big grocery
stores have opened for business, it does not mean the end of the variety store
business. As shown in this article, there are always new opportunities that
arise out of any situation. It's up the the entrepreneur (small business
owner) to find these riches. As an example of the opportunities, summer sales
in the Mac's convenience store mentioned in the article rose by 38 % because
changes were implemented.
(
geocities.com/siliconvalley/campus/9640/2ndYear) (
geocities.com/siliconvalley/campus/9640) (
geocities.com/siliconvalley/campus) (
geocities.com/siliconvalley)