How to Give Your Retail Store Local Advantage: 7 Tactics to Try

Local Advantage

Retail store local advantage: Don’t be disheartened by big-box retailers this holiday season. A study by Spong, as reported in MediaPost, shows promising trends for local businesses. Surprisingly, 30% of consumers say they would choose local over national brands ‘always’ or ‘most of the time’ if all things were equal.

This contrasts sharply with the 12% of marketers who think the ‘local’ factor matters to consumers. It turns out, your local store has a stronger advantage than you might realize, especially during the critical holiday shopping period. So, how can you maximize this local appeal in your retail store?

Keep reading for practical strategies to make the most of this consumer preference for local brands during the holiday rush.

Gain the Retail Store Local Advantage

If you’re ready to call attention to your local retail business, here are some effective tactics to try.

Think Local When it Comes to SEO

retail store local advantage

Incorporate local keywords, such as your city, neighborhood, shopping center name or even street name when doing your SEO, as well as into any online advertising that you do.

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  • Research is Key: Research local events, landmarks, and colloquialisms to include in your SEO strategy. This makes your content more relatable and discoverable to a local audience.
  • Community Engagement: Engage with local bloggers and influencers to create content around your store, leveraging their local following and enhancing your SEO through backlinks.

Try Geo-targeting

retail store local advantage

This mobile marketing method uses GPS information about where consumers are at any given moment to send marketing messages to them in certain geographic areas.

Geo-targeting is an option for Bing Ads or Google AdWords, as well as Facebook ads. It lets you do things like send offers to people who are near your store — or near your competition’s store so you can lure them away.

  • Precision Marketing: Use geo-targeting to send personalized offers to customers who have previously visited your store or shown interest in similar products, increasing the likelihood of conversion.
  • Local Partnerships: Collaborate with nearby businesses to create joint promotions, shared discounts, or cross-promotional events, broadening your reach within the local market.

Get Involved in Community Business Organizations

retail store local advantage

If you think your local Chamber of Commerce and similar business organizations are corny, think again. By attending these groups and really getting involved, you can make valuable connections and discover new ideas, resources and partnerships for marketing your business.

  • Active Participation: Don’t just attend meetings – offer to host events, lead committees, or provide expert advice in your area of retail, positioning yourself as a community leader.
  • Collaborative Initiatives: Initiate or join community development projects that align with your business values, enhancing your local reputation and creating networking opportunities.

Give Back to Your Community

retail store local advantage

The holidays are a natural time for doing good, and consumers especially love it when businesses participate in their community and local organizations that customers care about. (Check out my recent article for more holiday charity marketing tips.)

  • Tailored Initiatives: Identify local causes or charities that resonate with your customer base and develop targeted support programs, such as percentage-of-sale donations or charity events.
  • Storytelling: Share your community involvement stories through social media and in-store displays, creating emotional connections with your customers.

Selling By Walking Around

retail store local advantage

Don’t hide away in the back of your retail store working on inventory or doing the books. Save that for after hours and spend the valuable time when your store’s open out on the sales floor, mingling with customers.

People love to buy from real people who live in their communities, rather than from faceless corporations. When they get to know you as a person, they’ll be more inclined to come back again and again. (Bonus: By really being present in your store, you’ll be better able to guide your salespeople and ensure they’re performing the way you want.)

  • Personal Touch: Train your staff to share your store’s story, mission, and community involvement, ensuring that your local roots are highlighted in every customer interaction.
  • Customer Insights: Use these interactions to gather informal feedback and suggestions, which can guide your business strategies and inventory decisions.

Partner with Other Independent Business Owners

retail store local advantage

Is your business located in a busy downtown shopping area? A suburban mall? A hip, trendy neighborhood? Wherever you are, there are other retailers and small, independent businesses nearby that could all benefit from working together.

Does your community have a Buy Local program? Ask around, and if there isn’t a program in your area, consider starting one. The American Independent Business Alliance has lots of resources to help.

  • Cross-Promotions: Develop joint loyalty programs or shared discount schemes with nearby businesses, offering benefits to customers who shop locally.
  • Event Collaborations: Organize or participate in local street fairs, festivals, or markets, which can attract more foot traffic and enhance community engagement.

Take Advantage of Small Business Saturday

retail store local advantage

Held on the Saturday after Thanksgiving, Small Business Saturday is sponsored and supported by a wide variety of organizations, including American Express and the SBA.

The event encourages shoppers to purchase from local, independent businesses instead of national chains when doing their holiday shopping on this day and throughout the holiday season. You can learn more and access tons of marketing materials and resources at the Small Business Saturday website.

  • Extended Promotions: Extend Small Business Saturday deals to a week-long event, encouraging prolonged engagement and giving more customers the chance to participate.
  • Digital Integration: Promote Small Business Saturday through your online channels, creating email campaigns, social media buzz, and website highlights leading up to the event.
TacticDescriptionBenefitsPossible Limitations
Think Local When it Comes to SEOIncorporate local keywords into your SEO and online advertising.Improved online visibility in local searches.Keyword stuffing can hurt SEO if not done properly.
Try Geo-targetingSend marketing messages based on consumers' GPS location.Targeted advertising; potentially higher conversion rates.May require more sophisticated technology and could be seen as intrusive.
Get Involved in Community Business OrganizationsParticipate in local business groups, such as the Chamber of Commerce.Networking, discover new marketing ideas, partnerships.Can be time-consuming; not all meetings/events may be beneficial.
Give Back to Your CommunityParticipate in local charities and organizations, especially during holidays.Enhances brand image; fosters trust and goodwill.May require financial or time investment.
Selling By Walking AroundMingle with customers on the sales floor instead of staying in the back.Builds personal relationships, which can foster loyalty and repeat business.May be challenging for large stores or during peak times.
Partner with Other Independent Business OwnersCollaborate with nearby retailers and businesses for joint promotions.Shared customer base; cost-effective marketing.Conflicts of interest might arise; collaboration requires effort.
Take Advantage of Small Business SaturdayParticipate in the post-Thanksgiving event promoting local businesses.Increased foot traffic; access to promotional materials.Only once a year; larger retailers may overshadow smaller businesses.

By using these strategies with a deeper focus on community integration, personalized experiences, and collaborative efforts, your retail store can significantly enhance its local advantage and foster a loyal customer base that values the unique offerings and experiences provided by small, independent businesses.

Why Consumers Prefer Local Retailers Over National Chains

retail store local advantage

Many consumers are increasingly drawn to the charm, authenticity, and community-centric ethos of small, local retailers as opposed to the often impersonal feel of national chains. One of the fundamental reasons behind this preference is the unique, personal shopping experience that small businesses provide, allowing them to build stronger, more personal connections with their patrons.

Unlike large chains that often standardize their offerings and shopping experiences across the country, local retailers often have the flexibility to tailor their products and services to the specific needs and preferences of the community they serve.

Additionally, supporting local businesses frequently aligns with consumers’ values related to economic sustainability. When people shop locally, they are directly contributing to the prosperity of their own community.

The money spent in local stores tends to remain within the community, helping to support other local businesses, services, and job creation. Furthermore, local retailers often carry unique, handcrafted, or specialized products that aren’t available in national chains, appealing to those looking for distinctive items.

Here are some key reasons consumers prefer small, local retailers:

  • Personalized Service: Local businesses often offer a more personalized and attentive customer service experience.
  • Unique Offerings: They often stock items that are unique, artisanal, or catered to local tastes.
  • Community Connection: Shopping locally allows consumers to feel a stronger connection to their community.
  • Economic Impact: Money spent at local businesses is more likely to stay within the community, supporting other local ventures and job creation.
  • Ethical Considerations: Many local businesses follow sustainable practices and support local artisans, resonating with ethically-minded consumers.
  • Authenticity: Local retailers often have authentic stories, histories, and connections to the community that can’t be replicated by larger chains.
  • Environmentally Friendly: Shopping locally can reduce the environmental impact due to reduced transportation and shipping.

In essence, the shift towards local shopping is not just a trend, but a reflection of consumers’ desires for more genuine interactions, ethical considerations, and the longing to feel part of a larger community-centric narrative.

Challenges of Running a Local Retail Business

retail store local advantage

Local retailers face a myriad of challenges when competing with national chains, which often have vastly superior resources and economies of scale. National chains, with their expansive budgets, can often out-price, out-advertise, and outpace smaller retailers in several arenas.

Furthermore, their established brand recognition often means that they are the first port of call for many customers.

One significant challenge for local retailers is the limited budget for marketing and promotions. Unlike national chains that have vast marketing departments and budgets, local retailers often must rely on grassroots methods or word-of-mouth advertising.

This can make it difficult for them to reach a larger audience and draw in new customers.

Another challenge comes in the form of purchasing power. National chains can buy in bulk, leading to significant discounts from suppliers. This bulk purchasing allows them to price their products more competitively, which local retailers often find hard to match.

Moreover, national chains benefit from sophisticated supply chain and inventory management systems, ensuring optimized stock levels and reduced overhead costs.

Additionally, national chains can provide a consistent experience across all their locations, which is appealing to many customers. On the other hand, local retailers, with their individualized approach, may struggle to guarantee the same level of consistency, which some customers might perceive as a risk.

Here are some specific challenges faced by local retailers:

  • Limited Marketing Budgets: Less money for advertising and promotions compared to national chains.
  • Reduced Purchasing Power: Inability to buy in bulk and secure hefty supplier discounts.
  • Lack of Brand Recognition: National chains often have established brand trust and recognition.
  • Limited Resources: Fewer funds for store upgrades, technology, and employee training.
  • Consistency Challenges: Struggling to provide a consistent shopping experience due to localized operations.
  • Competitive Pricing: Difficulty in matching the low prices offered by larger chains due to higher costs.
  • Reduced Operating Hours: Unlike chains, local retailers may not be able to stay open for extended hours or every day of the week.

Despite these challenges, many local retailers leverage their unique strengths, such as personalized service, community ties, and niche offerings, to carve out a space for themselves in the retail landscape.

However, the competition with national chains remains a significant hurdle that requires innovative strategies and continuous adaptation.

By taking these simple steps to gain the local advantage, you’ll help give your small retail store the full benefits of the local advantage. How do you “think local”?

Buy Local Photo via Shutterstock

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Rieva Lesonsky Rieva Lesonsky is a Columnist for Small Business Trends covering employment, retail trends and women in business. She is CEO of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Visit her blog, SmallBizDaily, to get the scoop on business trends and free TrendCast reports.

3 Reactions
  1. I think the fastest way to get noticed is to get involved. No SEO or online marketing or geo targeting can match really going out there and physically interacting with your target market.

  2. YJ (PatronPool Co-Founder)

    Try co-marketing platform service that let local businesses reach high quality customer prospects based on the sharing of a patron pool contributed by local businesses with their opt-in customers, with promotional email campaigns dispatched by the co-marketing service such that no customer privacy issue encountered, nor business interest protection concerns remain.
    (Disclosure: we are the PatronPool co-marketing service platform provider)

  3. I appreciate your advice about donating to a certain community and partnering with organizations that’ll capture the heart of the customers more. My sister is planning to rent a free space at our local shopping center to put up her thrift store business, but she wants to make sure that she knows everything before she opens it. I’ll share this article with her because she can learn a few things, which will help her store be successful aside from making sure that her proceeds will go to the orphanage where we always go to.

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