The fight against big stores, who is the real bully?
ENG122: English Composition II
Lucinda Ramon
Instructor Iris Chao
April 15, 2013

The fight against big stores, who is the real bully? Chain stores are often surrounded by criticism for destroying smaller stores which seems an ironic assessment considering the consumers themselves play such a vital role in their success. Not much is ever mentioned about the smaller stores that thrived as a result of the big stores. Big stores (chain stores) are the result of when a small store (independent store) becomes successful and is able to expand into multiple locations. They are successful for many reasons that are important to customers and smaller stores can benefit greatly by operating next to a big store. Testimony from small store owners and studies show that big stores have the potential to be a positive addition to any community including the surrounding smaller stores. Many studies have been performed showing evidence that small stores that are located near big stores have experienced increased sales as a result of an increased traffic flow of customers from the larger store. Purdue University conducted a study consisting of 101 entrepreneurs between the times of 2004-2006 asking why they decided to start a business. (Goessling, 2007) Small business owners learned of the different opportunities for small businesses afforded by big stores. One such opportunity is for small businesses to advertise and provide discounts on the back of receipts from big stores. Advertising or special discounts on the back of the receipts can attract big store customers to their smaller store. Another lucrative business opportunity is the increase of customers that would not be possible if it were not for the draw of the big stores. Payless Shoe Source is an example of a smaller store, though it is a chain store, located next to many Wal-Mart and Target locations drawing off the heavy traffic flow of customers. Payless Shoe Source sells shoes, purses, jewelry, perfume, and socks which coincidently is what the bigger stores also sell, yet Payless is still able to make considerable profits. GameStop is another example of a smaller store, also technically a chain store, which profits by selling video games, video game consoles, and accessories regardless of Wal-Mart and Target selling much of the same items also. Placing smaller stores next to bigger stores is not a new concept, Americans have been using this idea since 1956 when Minneapolis first opened its enclosed shopping center (shopping malls). (Marketing Magazine, 2004) Many of the smaller stores inside the shopping mall were located next to a bigger store, most of which sold the same type of items, clothes yet most if not all smaller stores were still able to make profits. Some of the bigger stores in the shopping malls included stores such as JCPenney, Dillard’s, Macy’s, and Sears. Shopping malls have since faded away in many cities across America, which paved the way for an even newer concept. The recent shopping trends have placed a variety of smaller stores together in what is now known as a “shopping strip”. It is convenient for the customer to be able to do all their shopping with stores that are considerably near each other. It could prove to be time consuming travelling great distances to each store and not to mention costly because of the amount of gas needed to travel to each location. The final example of a benefit a small store could receive when coupled with a big store is the cost of starting up is more affordable. A beginning store owner could face huge startup costs when they buy or rent a building for their store, pay a down payment on utilities, purchase office supplies, purchase merchandise, and pay for advertisement. Auntie Anne’s pretzel company is a perfect example of a small store utilizing the benefit of a large business. They started their business by renting a booth in a farmer’s market. They were successful at the farmer’s market and were able to expand to different locations in malls, Penn Station in New York, and the final huge profiting step of opening locations inside HEB grocery stores. (Auntie Anne’s, n.d.) By renting smaller spaces in larger buildings, Auntie Anne’s was able to save money on start-up costs, therefore capitalizing on profits sooner. A separate study was reported by Quantitative Marketing and Economics in 2011 involving a test study of two locations of Dominick's Fine Foods and Wal-Mart. One location of Dominick's Fine Foods was located in the same shopping center as a Wal-Mart while the other location was two miles away from a Wal-Mart. After studying both locations for two years, the owners of Dominick’s Fine Foods learned some surprising results of the change in their sales. The Dominick’s Fine Foods location that was in the same shopping center as Wal-Mart experienced an increase in sales benefiting from the heavier flow of customers. The other Dominick’s Fine Foods location that was located two miles away from a Wal-Mart experienced a decrease in sales. This study strengthens the suggestion that smaller stores experience an increased flow of customers they would likely not have if not for the draw of the big stores. Smaller stores have the potential to compete with bigger stores because the smaller stores have the ability by evolve and alter their retail tactics quicker than the bigger stores. In an article written by the Star Tribune, the small business community of Red Wing prepared for the arrival of Target and Wal-Mart by hiring Creative Management Institute, a consultant company. (Werner, 2002) One suggestion from the consultant called for the group of smaller businesses to work together to match their store hours in addition to extending them. This is a great suggestion that focuses on providing convenience for the customers as previously mentioned. Many customers do not have the time to coordinate different hours and even different days to shop at each store. Another suggestion the consultant provided was for smaller businesses to focus on a mailing list they could compile by having each guest sign the store registry. Businesses can make great use of a mailing list by sending invitations for store events, sale promotions, and merchandise discounts. One small store owner was making his own preparations to strengthen his business by utilizing what he called "search-and-find services" to aid him with information on informing of what items to stock that could be hard to find at other stores. Stocking hard to find items is a clever way to attract customers into their store for that item and perhaps purchase some other items while they are there thus boosting profits for the store. Some shoppers prefer shopping at the smaller stores to escape the sale madness. (Schlachter, 2010) Huge sales, such as Black Friday in big stores, have a tendency to draw an extreme amount of customers resulting in overwhelming them, possibly becoming even dangerous to some. In December of 2008, a Wal-Mart temporary security worker was trampled to death due to the rush of an estimated 2,000 anxious customers that were racing one another to the Black Friday item they wanted to purchase. (Herbert, 2008) Another incident happened more recently in 2011 on Black Friday at a different Wal-Mart when a woman used pepper spray on other customers to ensure she would get to the video game console before the others. (Caiaccio, 2011) Smaller stores that do not have the sale madness environment is one advantage they could have for attracting customers that choose to avoid the big crowds. Smaller stores can greatly profit by having their location near a big store in many different ways. There is a level of uniqueness and product expertise a small store offers that can be hard to find when shopping at big stores and could prove to be the key ingredient to success. One of the major contributions to the success of the big stores is the majority of the customers making a conscious decision to shop there, whether the reason is convenience or price. There are many families across America that live on a balanced budget for food, clothes, school supplies, home repair tools, and many other items. One of the reasons the chain stores are successful is they enable families to meet their budget by selling items they rely on at affordable prices. One of the benefits for the customers is when a big store opens up in their community, their low prices for items drive down the prices of the smaller stores nearby also. Smaller stores or boutiques have been known to be a bit pricy for their items. The competition the small store owners face with the bigger stores forces them to reduce their prices. Wal-Mart and Target sell many items for the entire family, items for the home, outdoor activity items, cleaning supplies, holiday decorations, fresh fruit, and groceries. Many families enjoy the convenience of being able to purchase all the items on their list at one place. An extra convenience the big stores offer is the snack area they provide where customers are able to enjoy a snack, eat meals, eat deli sandwiches, or even drink coffee. This is a great convenience for many families who are short on time that need a quick meal for themselves or their children or would like to enjoy a cup of coffee. Wal-Mart plays host to McDonald’s and Subway, Target offers a snack area and Starbuck’s, and HEB allows Auntie Anne’s to serve food to its hungry customers while they shop. The heavy flow of the snack areas, like the ones seen in Target or the McDonald's in Wal-Mart, exemplifies the importance to families enjoying so many features available in one place. Wal-mart and Target are triumphant in offering decorating products for your house, toiletries, school supplies, pet food, clothes, food, craft supplies, and even fabric to sew with all in one location for convenience to its customers. Along with the convenience factor and price values is a final benefit from the bigger stores which are the jobs it creates in each community. According to the South Florida Sun- Sentinel, in February of 2013 a Wal-Mart in North Lauderdale had its grand opening and employed 85 workers. (South Florida Sun-Sentinel, 2013) According to PR Newswire Association, Wal-Mart has set a goal to create 10,000 jobs in Chicago by the year 2015. (PR Newswire, 2011) Most recently, Wal-Mart has campaigned on their mission to hire military veterans. There are many reasons why the big stores are the success they are. Numerous customers over the years have made a conscious effort to shop at the big stores and rely on them for their daily routines. When we take a close look at the big stores that are perceived as bullies, it seems they are bullied as a result of their success by the very people that helped establish them. Many big stores we see today have started out as small stores but have become success and huge as a result of pleasing the customers providing them with the items they need at the affordable prices they desire. Over the years, numerous customers have flocked to the successful big stores, relied upon them in turn making them a staple of their individual household. Many of the big stores have lent a hand to starting businesses to help them become established and have also established partnerships with other smaller companies to enhance the one stop shopping experience for its customers. Perhaps big stores are not the bullies they seem to be and have been unjustly criticized by the real bullies, the American public.

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