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Value vs. Price in Retailing Wal Mart's Retreat - Value vs. Price
by Allan Katz
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Value vs. Price in Retailing

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The Wall Street Journal reports in its October 3rd issue that there is a big shift in retailing. As I've been preaching for years now, discounting is not a panacea that lasts forever.

Small stores are redefining themselves and this redefinition is beginning to take its toll on Wal-Mart especially. According to the Journal, " Rival retailers lured Americans away from Wal-Mart's low price promise by offering greater convenience, more selection, higher quality or better service." Those that remained discounters fought their way up by positioning themselves as much more upscale.

Lee Peterson, a vice president at Dublin, Ohio-based brand consulting firm WD Partners, Inc. said, "For the first time in a long time, quality has a chance to gain on price."

This is all great news for locally owned businesses. Finally there is an opportunity to gain more market share and the time is now.

According to the Journal, " Consumers are demanding more freshness and choice, which means that food and new clothing designs must appear on shelves more frequently. They are also demanding more personalized service."

These types of changes are difficult for massive retailers like Wal-Mart, but they shouldn't be difficult for you. The reason this is happening is the world is becoming much more fragmented. The Internet is transforming the scope and scale of offerings consumers can purchase, forcing local retailers to follow suit, or fade away.

We can learn a lesson from Wal-Mart's competitors also. Drugstore chains like Walgreens and CVS successfully compete with Wal-Mart, K-Mart and Costco by redefining their entire missions from simple drug purveyors to health services providers, educating consumers and teachers while providing testing, flu shots and in store clinics to complement drug and sundry sales.

There is a growing trend in this country toward convenience. Consumers complain that the super box retailers are too crowded and too large. They would rather pay a little extra for the convenience of having knowledgeable sales people who can help them make informed buying decisions in a non harried atmosphere.

Sound familiar?

Instead of fighting your competition with a head on tackle, do an end run and beat them with better selection, better service, a more convenient shopping experience and information to help them make informed buying decisions.

A colleague of mine recently told me something that has begun to change my life for the better and that is to value what you know and take ownership of it. As Dan Kennedy says, "People are silently yearning to be led." People call you or walk into your store because they have a need. It's your job to explore that need with them and give them the solution. Then charge good money for it.

Better selection, freshness, choices, personalized service, convenience and information. I've just given you a powerful six part formula for success backed by actual case studies.

Are you ready to implement them into your business?

Allan J. Katz, The Loyalty Coach, helps businesses attract, keep and multiply customers. For his ezine, "Remarkable Marketing Results" visit his website at http://loyaltycoach.com

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Allan Katz
Loyalty Marketing
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