Mind the middle: why retailers small and large have the best survival prospects

(Source: Supplied)

Small retailers are more advantaged than medium-sized retailers to thrive in the coming years, according to e-commerce integration firm Convergence.

“They often lack the scale of mega-stores and the customer focus of smaller businesses, leaving them vulnerable to changing consumer behaviour and rising overheads,” Convergence MD Mark Presnell, referring to medium-sized businesses.

“Big-box stores can afford to dedicate significant resources to online operations, which medium businesses often struggle to match. Smaller businesses can now expand beyond, for example, Invercargill and go national if not global — they have lower overheads and offer a more intimate experience.”

Presnell said medium-sized stores tend to prioritise physical presence while sacrificing online operations, resulting in outdated product listings, inaccurate pricing, stock discrepancies, and poor customer communication.

Instead, Presnell advised retailers to embrace technology, implement omnichannel integration, and foster community and collaboration.

“By embracing technology, prioritising customer service, and building strong online presences, small retailers can not only survive but flourish in the years to come,” Presnell said.

“The future of retail belongs to those who adapt and innovate.”

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