Small stores battle big-box retailers for holiday sales
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In the middle of the night on Black Friday, hundreds of customers were not huddled outside small shops in Lawrenceville or Sewickley. The media were not documenting mad rushes into stores on East Carson Street.
"We don't have a $49 DVD player like Best Buy that people stand in line for," said Joe Ravita, the owner of Empire Music on Washington Road in Mt. Lebanon.
Holiday shopping strategy is different for small retailers. They rely on sales as much as chains, but they're trying to pay rent, not impress Wall Street analysts.
They pay attention to discussions of gas increases and tightening credit, and they see all the promotions being offered. "I walk through the mall and I see what's going on," said Ellen Calig, manager and buyer for Lintons, an upscale women's specialty store at the Waterfront shopping center.
But predictions calling for consumer spending this season to grow just 4 percent -- the slowest rate in several years -- still sound pretty good to many small merchants. Their challenge is battling big-box competitors and online stores for a share of those dollars, their struggle to make a small store's marketing message heard above the cacophony.
While that matters more during the holidays when the National Retail Federation estimates many retailers can do as much as 25 percent to 40 percent of their annual sales, it's a continuation of the daily pressures inherent in being small and independent.
John Henne, at Henne Jewelers in Shadyside, conceded that his staff had concerns about the economy as far back as January. After eight to 10 years of solid growth including a move that almost doubled the store's size, the thinking was that maybe this was the time to take a more prudent approach.
Instead of expanding the inventory, they set their orders at about the same levels as last year while adding new styles to keep things fresh.
So far, so good. He reports double-digit sales increases as shoppers select their watches and diamonds. "People are still spending," said the businessman whose family has been selling jewelry for 120 years. If Henne has done a few more events for top clients and hosted some trunk shows, that's just a little extra investment in keeping customers coming back.
Over at Lintons, the busy season came during the fall months, and that was strong, said Ms. Calig. She said customers continued to come in looking for something to wear to holiday parties, a niche where the store has established a reputation.
At the Gift Corner in Sewickley, manager Melissa Cook said her customers started shopping earlier than ever. A store that carries special glass-blown ornaments and Byers' Choice Carolers figures depends on holiday business. Some people bought gifts in the summer and asked the store to hold the items for them.
"I really think when it comes to Christmas, people are very giving, and they always will be," said Ms. Cook. She's looking for sales to be about even with last year and calls that a good season.
The tools small retailers use to differentiate themselves -- personal service, convenience and quality -- haven't changed a great deal over the years, although techniques have evolved.
Just the other day, Gretchen Harnick received an e-mail from a retailer in Lawrenceville that she had patronized in the past. The "Dear Gretchen" note said new items had arrived for a collection she'd bought from before.
Ms. Harnick, academic department director for fashion and retail management at the Art Institute of Pittsburgh, also is impressed by the coordination going on between various merchants. "When they collaborate, they're the size of a small department store, really," she said.
South Side retailers will host a second annual Stuff Your Stocking event on Saturday, with customers picking up shopping bags and using guides to help them discover unfamiliar stores. Lawrenceville held its seventh annual Joy of Cookies tour through shops on Butler Street.
In Mt. Lebanon, this year has brought a concerted push to do more. "We all agreed we need to get people out here during the holidays," said Mr. Ravita, who also serves as president of the Washington Road Business and Professional Association.
For the first time, the community is taking the First Friday events it has used to draw people in the summers and trying them on for the holidays. On Saturday, shops will be open, carollers will stroll and "Lebo the Elf" will hand out $1,000 worth of gift certificates, coupons and prizes.
Small merchants should not try to compete with mass merchants on price, said Mr. Ravita. Wal-Mart, for example, carries a less expensive guitar than he does. He's selling quality and service, areas where he feels the massive competitors can't compete with him.
Still, mindful that this is a big season for giving guitars to beginners, he tried to buy enough this year to qualify for volume discounts. He's offering a package that includes the guitar, a case, extra strings and other items that a starting player would need and might end up paying more for after buying the cheapest guitar.
Big box retailers have done well with the popular Guitar Hero video games, and that's been good for Empire Music, too. Something about pretending to play the instrument seems to stir up interest in trying the real thing. "It's driving kids into the store," said Mr. Ravita, who even sells sheet music for the game's soundtracks.
The E House, on East Carson Street, also sees outside developments inspiring people to seek out its eco-friendly products. "Our customers shop here for the sake of values-driven purchasing, instead of getting the most things for the least money," said Tanya Kavalkovich, manager and buyer.
Trying to get ahead of the Black Friday madness, the store used old-fashioned snail mail to send its customers coupons that were good before Thanksgiving. "We don't get the frenzied masses," she noted.
At this point, Ms. Kavalkovich is taking a cautious approach to offering predictions for how strong this holiday season will be. "The next several weekends could swing it one way or another."
First Published December 4, 2007 12:00 am
