SCORE, the nonprofit organization that provides free business mentoring services to small business owners, has collected data showing how small brick-and-mortar retailers are remaining competitive in the online-era. Here’s how.
98.6% | The percentage of all retail firms that are small businesses
40% | The percentage of all retail jobs that are found in small retailers
“Over the past 20 years, the internet has steadily disrupted the retail industry, leading many to assume that brick-and-mortar stores would eventually become a thing of the past,” says SCORE CEO Ken Yancey.
“Instead, this data shows how small brick-and-mortar retailers are successfully adapting their shopping experiences through strategies such as entertaining in-store events and special promotions, which appeal to the modern consumer’s busy lifestyle and evolving needs.”
Small retailers with 50 or fewer employees make up a majority of the retail industry:
- Small retailers make up 98.6% of all retail firms.
- Small retailers have an average monthly revenue of $22,341 and an average gross margin of 51%.
- Small retailers hire 39.8% of all retail employees.
Brick-and-mortar businesses have an in-store advantage over online-only retailers:
- 69% | Percentage of people with discretionary monthly income spend in-store
- 9.46% | Percentage of total retail commerce that takes place online
- 55% | Percentage of online shoppers who prefer to buy from retailers that have a physical store presence (versus online only)
Percentage of retailers using various events to retain customers
- 87% | Access to exclusive items or sales
- 81% | Parties
- 80% | Product demonstration or tutorial
Small retailers that sell furniture and alcohol have the highest average monthly revenues
82% | Percentage of shoppers who attended a retail event last year
58% | Shoppers who are interested in going to one in the future
- Furniture | $40,000 in monthly revenue
- Beer, Wine and Spirits | $39,000
- Sporting Goods | $30.400
- Jewelry | $30,000
- Furnishing | $28,000
- Beverages | $27.700
- Electronics | $26.400
- Fashion | $25,00
- Specialty Foods| $20.200
- Cosmetics & Beauty | $18.600
Source | Score