Online retail’s impact could be opportunity for ‘mom-and-pop shops’

in Economic development/News

By Ike Fredregill, Cowboy State Daily

Online shopping is giving the Cowboy State’s brick-and-mortar retailers a run for their money, but it’s also creating new opportunities for local businesses, a Wyoming Business Council spokesperson said.  

“We’ve added 74 net new businesses and 168 net new jobs to the Wyoming economy in 2018,” said Tom Dixon, the Business Council’s content marketing manager. “When you’re looking at online shopping, an iPhone is an iPhone no matter where you buy it, but we’re seeing increased interest — especially in the younger generation — in unique and locally sourced products you can only find at a brick and mortar.”

Online retailers such as Amazon now offer one-day delivery options, providing a level of convenience close to that of a store with a physical location. But Trey Sherwood, executive director of the Laramie Main Street Alliance, said more and more Wyoming retailers are branching into new services to keep their customers coming back.

“We’re seeing businesses trying to close that leakage gap by offering services such as custom mail order purchases, where the business owner takes an order online or over the phone and puts the product in the mail that day,” Sherwood said. “There’s also a new trend called experience-based retail.”

Brick-and-mortar retailers are using face-to-face customer service, community building events and product workshops to create an experience beyond the simple exchange of money for goods, she explained.

Laramie’s historic downtown district experienced a serious slump during the 1970s, with businesses closing and storefronts sitting empty for years, but four decades later, Sherwood said the area is coming back strong — due in large part to reinvigoration efforts by the city and economic development organizations like Main Street.

“We don’t yet know to what extent our brick-and-mortar stores are being affected by online retail, but we know it is happening,” she said. “The pendulum will continue to swing, and we need to be prepared for what the next 50 years could bring.”

Creating a sense of place with art installments like the Laramie Mural Project is one way to keep consumers engaged with the local business community, but engagement can’t stop at the curb.

“There is an external conversation we need to have with our community — we simply can’t rely on buzz words like ‘shop small,’” Sherwood said. “We need to educate people in our communities about how spending money locally affects small economies.”

Large corporations aren’t immune to the pinch created by online shopping either, and several, including Shopko, Boot Barn and Kmart, recently pulled out of some Wyoming cities.

While the initial shock of losing a major retailer lingers for years, Dixon said the gaps left by big box stores can be beneficial.

“When something like that happens, the convenience is gone,” he said. “That provides a lot of opportunity for these mom-and-pop shops to expand their inventory and attract new customers.”

At the University of Wyoming College of Business, Elizabeth Minton, an associate professor of Marketing, has an eye on the future interactions of consumers and their retail preferences.

“I think in the coming years, we’re going to see a split,” Minton said. “People who are more money conscious are going to go online more, because it’s cheaper and likely will remain that way. People who are concerned about (economic) sustainability will likely shop more locally.”

Leave a Reply

Your email address will not be published.

Latest from Economic development

Go to Top