Speaker: Small Chains Can Win

NEW YORK CITY-Just because a retailer is a smaller operator compared to today’s mega chains doesn’t mean they are doomed. There are plenty of straightforward strategies those businesses can put in place to compete with the Wal-Marts of the world, said a presenter here yesterday at the National Retail Federation’s annual convention.

One thing that smaller chains can do to strengthen their market presence is affiliate with other companies in trade organizations, says Harold Lloyd, a retail consultant who is also a franchisee of Friendly’s restaurants in Virginia. “You can take the biggest dog down when you get together,” he says.

Store renovations, something smaller operators might shy away from, are also important. To facelift a store every four-to-five years, the average cost is $7 per-sf, Lloyd says, and waiting every eight-to-10 years can skyrocket to $42 per-sf. “You don’t have the right to build a new store until all of your stores are an eight on a 10 scale,” he says.