The recent Mainstreet Australia Awards, held during Main Streets of Australia Week last month, recognise and celebrate the importance of local high streets, strip shopping centres and town centres (collectively referred to as ‘main streets’), and the role they play in creating lively communities, individual wellbeing, and robust local economies. The Awards showcase hardworking retailers, small business owners and entrepreneurs making shopping areas vibrant and thriving places. From fas
fashion and beauty to food and drink, these businesses contribute to the character and vibrancy of communities, creating jobs, boosting the local economy, and improving the overall quality of life for everyone.
Main streets are more than just places to buy products, access services and eat and drink – they are a reflection of the people and culture that make up local neighbourhoods, towns and cities. In an era dominated by big-box retailers and e-commerce giants, small independent retailers on main streets have managed to carve out a niche for themselves.
We often ask large retailers for advice for small stores to emulate, but the recent Mainstreet Awards show there are lessons that big business can learn from small, independent stores about resilience, creativity and adaptability in the face of challenging times.
Collaborate
Small independent retailers are deeply ingrained in the fabric of their local communities. They actively engage with residents, support local causes, sponsor events, and often collaborate with neighbouring businesses creating a network of support that fuels community development. By forming partnerships, local traders can leverage their collective strengths, share resources, and engage in joint marketing efforts. Such collaborations not only enhance the viability of individual businesses but also strengthen an entire shopping precinct, creating a vibrant destination that appeals to a wider audience. Many small stores are also committed to using local suppliers whenever they can and this helps sustain other small businesses in the area, contributing to a more resilient local economy. This sense of community fosters loyalty among customers and generates positive word-of-mouth.
Focus on the ‘local’
Local businesses offering unique products and experiences contribute to the distinct character and identity of a community. Through hosting events, supporting local initiatives, and participating in community projects, local traders are central figures in a community and they create social capital – a set of shared values or resources that allows individuals to work together in a group to effectively achieve a common purpose. Those who shop locally, have greater opportunity to interact with business owners and other shoppers, and this has been found to promote social cohesion and combat social isolation. During the pandemic when we had to shop locally, many people (re)discovered local stores, services and eateries.
Personalise
One of the key advantages small independent retailers have over their larger counterparts is their ability to provide personalised customer service and a superior customer experience. They develop strong relationships with their customers, taking the time to understand their needs and preferences which fosters customer loyalty.
Taking time to build relationships with customers, small businesses take the time to learn names, preferences, and individual needs. This creates a welcoming and familiar environment where customers feel valued. Small store owners go beyond transactional interactions, going above and beyond to offer tailored recommendations.
Differentiate
One of the reasons many small independent retailers thrive is their ability to offer a selection of unique and specialised products. They have the ability to carefully curate their inventory to cater to the specific tastes and interests of their customer base, with products that are not easily found elsewhere. Small stores with exclusive products and tailored experiences can attract discerning customers seeking something different from the mass-produced offerings available elsewhere. By emphasising quality and craftsmanship, and often collaborating with local artisans or suppliers, they engage customers in a story that goes beyond the product itself, fostering a deeper appreciation and emotional connection.
Small independent retailers on main streets are adept at adapting to changing market trends and customer demands. Unlike large corporations, they can quickly adjust their offerings, store layouts, and marketing strategies to cater to evolving preferences. Small traders are receptive to change and embrace innovation to remain relevant for their customers and differentiate from competitors.
Authenticity and storytelling
Small retailers often have compelling stories that resonate with customers. Many have a rich history or a compelling narrative behind their business. By emphasising their origins, craftsmanship, and the passion behind their products, as well as their journey that led them to where they are today, they forge emotional connections with their customers. Authenticity breeds trust, and customers are more likely to support businesses that align with their values and have a genuine narrative to share. This personal touch creates a genuine connection, as customers feel more than just another transaction.
Research has shown that access to local shops and amenities correlates with higher levels of happiness and life satisfaction. And as local place makers, government, chambers of commerce and individual traders work to continuously improve access, greenery, street art, amenities and the built environment across local shopping precincts, the benefits for everyone are further enhanced. Recognising the immense value of local businesses and actively engaging with them, can lay the foundation for a flourishing and resilient community that will endure.