Independants Versus The Big Box

I have always been big on supporting Independent Retailers. Mom & Pop's are our backbone. I too was an owner of a physical retail store called Southern Charm Home Decor so I really had a stake in people supporting the little guy. Sadly, I had to close my doors in Jan. Business was too slow and the rent just couldn't be paid any longer. I am happy to have my online store and sell mostly the 20x20 painted wood picture frames by Magnolia Lane. I wanted to see where all my customers had gone so I began asking friends I know and listening to where fellow bloggers were shopping.

Mostly I hear about Hobby Lobby & Home Goods. So off to Hobby Lobby I went. The closest one is about 30 min. away. I was shocked when I went into the Hobby Lobby, I haven't been in one in over ten years. Boy has it changed. There were home decor accents everywhere I turned!! And they were all 50% off. I have gone back each week for over a month and each week all of the home decor accents were 50% off. Folks, there is no way possible for an independent retailer to compete with that. Here in Woodstock, GA just about all of the independent gift store/home decor shops have closed their doors. Even the downtown Woodstock area has only a couple of Gift Shops/Home Decor shops left!! Where were the customers going that some long time well established shops were having to close. I knew it wasn't the economy as that area is quite affluent. Yep, I found a Hobby Lobby about 10 minutes from downtown Woodstock and I'd bet my bottom dollar that now that it is so chic to be thrifty it has gotten around town to check out the Hobby Lobby.

Our wounded economy has really changed the way business is done and how pricing is managed. Who can blame the consumer for going to the place with the lowest prices? Not me! Hobby Lobby for instance has so much buying power that they get much lower prices than the independent retailers. For example I saw some Golf themed hurricane candle holders (my hubby has a pair in his office) at Hobby Lobby last Monday. I sold that same pair at my store by the same wholesaler. I purchased them wholesale for $15 plus I had to pay 15% shipping. Standard markup at retail stores (independents & not clothing!! clothing has a much higher markup usually) is 50%. So I purchased them for $15. Doubled, the retail price made them $29.99. Retailers try to get their money back for shipping which would have made them $32.99. Sometimes you just have to eat the shipping and I did for this product and sold it at $29.99. Hobby Lobby had them regularly priced at $19.99 and they were 50% off and selling for $10.

$10??? Are you kidding me? Customers can buy home decor retail for less than what independent retailers are buying the exact same stuff for at wholesale!!!!!!!!! I paid $15 plus shipping and Susan Q. Smith can buy it out the door for $10? How does Hobby Lobby even pull this off? It's genius! Why would you ever go to an independent gift store ever again? Items that used to be exclusive to the independents are now available at the big boxes. Big boxes are slashing prices and have coupons galore! Why go to the gift store on the corner to buy a Lolita martini glass for a girlfriend when you can go to Macy's with your 20% off coupon and buy the same glass for less? I could go on!! I am totally in love with the Hobby Lobby now. I am scared to death to drive to the Home Goods that is in Cumming, GA. I hear many wonderful things about our new Home Goods. I tell ya, I just can't imagine after my visiting the Hobby Lobby in Woodstock and Cumming why any of the independent retailers are even still open for business. It is just coo coo to spend double the money anyplace else. I recognized many of the items at Hobby Lobby as items I sold in my own little shop that I miss dearly. I know customer service and relationships count for much buy hey, nobody mistreated me at the Hobby Lobby. Why should I pay $29.99 for the vinyl wall lettering I've had my eye on when I can go pay $15 at Hobby Lobby for the exact same product by the exact same manufacturer? I fear the big boxes are setting up the independents for failure. I love love small little gift stores and their fun events. But hey, half price is half price!

Does anybody have an opinion of switching over to the big boxes instead of shopping the independents? Does anybody think all this price slashing is going to change retail pricing permanently? I wonder......... I have dropped the prices of my 20x20 picture frames as I no longer have a physical store to support but boy oh boy. The big guys sure aren't making it easy for the small fry. What's your opinion? Where do you buy your home decorating accents?