A topic that seems to come up over and over again in any discussion of the current state of the scrapbook industry is the closing of the local scrapbook stores. As the behemoths of craft retailing like Michael’s and AC Moore (and general retailers like Target) are expanding and improving their scrapbook product offerings, local scrapbook stores have faced stiffer competition from them than they did a few years ago. Expanding e-commerce is also taking a bite out of the market share of some stores.
Some stores have continued to thrive. Others have died. What is the difference between the two? I believe that it may be exemplified by an email newsletter that I received from a store in my area recently.
As a customer in the scrapbook world I did not give any thought to the effect my shopping at a chain store would have on the independent retailer. It is because of this, along with my love for scrapbooking and this store, I would like to share my feelings with you.
I know that most of you love the independent stores and depend on them for the personal service you receive, the expertise of the staff, the classes, the crops, the special events, the page samples to inspire you, and the newest scrapbooking products on the market. We even know many of you by your first names! You do not receive any of these services in a chain store!
Quite frequently I hear people say that they just buy their basic supplies at a chain store expecting that does not have any impact on the independent stores. If you think about several hundred, maybe even a thousand people, spending at least $10.00 a month in a chain store… this definitely impacts your independent stores.
One customer told me she could get the same product for a dollar or two less at Target. When I ask her how important a specialty scrapbook store was to her, she purchased 3 of that item. She said she had never thought about the impact shopping elsewhere had on the independent stores.
The store has been open for almost 4 years and has not made one cent in profit! It takes $35,000.00 a month just to cover the overhead expenses. That does not include the cost of purchasing new product each month.
Please know that I am only telling you this to make you aware of the situation and the impact all the larger chain stores are having on the independent Scrapbook retailer.
We can’t change what we are not aware of….. everyone of you can make a difference to the independent Scrapbook store!
This store owner is not an anomaly. I have heard of emails like this sent by other store owners in the past as well. This philosophy, that you are hurting the local scrapbook stores if you spend a single dime in the chain stores, is common among many small store owners.
I think these store owners need to re-evaluate their perception of their stores and their position in the industy. They should no more view Michael’s as their competitor than Liz Claiborne views Target as a competitor. Scrapbook stores are specialty stores, boutique stores, and should play to that strength.
The store owner who sent the above email was actually very aware of her store’s advantages and disadvantages compared to the chain stores. But instead of using and expanding those advantages – and minimizing the effects of the disadvantages – she is choosing to ask for charity in the form of loyalty from her customers. The email even reads like a bit of a veiled threat or guilt trip that YOUR spending at a chain store is killing the local scrapbook store.
My advice to local scrapbook stores is simple: don’t compete with chain stores. Make your own playing field, instead of playing on theirs where you will inevitably lose. Don’t carry products that they carry (where you will certainly lose on price due to their buying power) if you can avoid it. Carry specialty products from manufacturers that support small stores through advertising and other programs. Offer service and classes that the chains simply can’t match. Remember that you are a boutique and carry yourself that way in the market!
Remember, if this were the fashion world, Michael’s would be Target…the local scrapbook store would be Gucci.
This article is so true! I have been a scrapbooker for over 10 years now and have seen many stores close. The local store near me lasted about three years but her inventory consisted mostly of EK Success. A great brand name with great product BUT also one that is in Walmart, Target, ACMoore, Michaels, Hobby Lobby. Yes, the industry has changed and all stores want a piece of the pie. I am sure this makes it very hard on local scrapbook stores. Thanks for such an interesting article.
Here is my reaction to that email – This morning I received a newsletter from an lss owner who mentioned that another area store would be closing this month (they were open for one year). It went on to say that expenses for her shop run $35,000 a month and that in the 4 years that her store had been open they had never made a profit. The piece closed by saying that customers shopping in chain stores (even if it was only to spend $10 a month) were affecting the bottom line of an lss and their viability.
Although I appreciate her points… I feel that I do go out of my way to support the lss and scrap related businesses… However, I have no intention of eliminating the chain stores from my shopping when they are within 5 miles of my home and the nearest lss is 20 minutes away… I also find it very difficult to imagaine that store expenses run $35,000 per month – and if this is the case, I have to say WOW because they are selling a tremendous amount of paper+ just to break even.
These are DIFFICULT times for EVERY industry not just the scrap world. And the viability of ALL businesses lies in the planning and preparation for the down times. The more I think about this topic the more I realize that we are entering a time for “survival of the fittest” across all areas of our economy. It is sad but true… and I don’t think that people avoiding the chain stores is the answer… That only jeopardizes a number of manufacturers. I believe that lss owners need to reach out to business consultants and restructure their business plans…
It amazes me when someone who really doesn’t know what she is talking about still talks . . . and talks . . . and talks.
P.S. My name “doesn’t matter” because you won’t let the post through.
It amazes me when someone who really doesn’t know what she is talking about still talks . . . and talks . . . and talks.
P.S. My name “doesn’t matter” because you won’t let the post through.
It amazes me when someone who really doesn’t know what she is talking about still talks . . . and talks . . . and talks.
P.S. My name “doesn’t matter” because you won’t let the post through.
It amazes me when someone who really doesn’t know what she is talking about still talks . . . and talks . . . and talks.
P.S. My name “doesn’t matter” because you won’t let the post through.
It amazes me when someone who really doesn’t know what she is talking about still talks . . . and talks . . . and talks.
P.S. My name “doesn’t matter” because you won’t let the post through.
Very interesting topic — I wish I could support the independently owned shops more. I wonder if online shopping could help these stores. Not sure about costs of maintaining that. The independent stores near me are at least 45 min drive away. So it’s not a matter of $1 or 2 each item, but that plus gas and time costs. You are so right about them playing up their strengths in their knowledge of the latest products, unique products that you can’t find anywhere, and classes! I think every local shop should keep their websites up to date and a blog. That helps tremendously in keeping me wanting to visit!