We have been hearing for several years now that Amazon and the Internet, more generally,are killing the retail sector of commercial real estate and that brick and mortars are going to be dead in next few years. This may be true for big box retailers like Toys R Us, sporting goods stores and others, however, there are many non-anchored neighborhood retail centers who are thriving because of the Internet.
The local pizza place or barber shop have websites where they can reach more people in their markets, and they can use review sites like Yelp to build their credibility and popularity. This allows them to compete with regional and national businesses in their industries. Here are afew retail businesses that can use the Internet to their benefit:
Fast food, dance classes, bicycle repair shops, arcades, kids party centers, trampoline parks, sushi bar, coffee shops, ice cream shops, nail Salons, air salons, barber shops, dry cleaners, music classes, ethnic market, gyms and fitness centers, martial art classes, photo studios, art studio and classes, after school classes. . Some of these businesses are great candidates for filling the vacant spots left by big box stores partially.
I have noticed a recent trend where CRE investors purchase vacant big box stores and divide them into smaller spaces to lease to smaller retailers.
If you’re a small or local business owner and you’re wondering how you can use the Internet to your business, here are several ways:
- Web site – web sites are fairly inexpensive and will provide wider reach to potential customers
- Mobile app – apps tend to be expensive to build, but allow small businesses to build a community around their products or services
- Internet based point of sale (POS) system – This allows you to keep track of customers, offer them loyalty rewards, and to use word of mouth
- Customer reviews – customers are empowered to give businesses feedback to improve their products or services. Also, if they are happy, they can share their experiences with others and create a larger community for the local businesses
- Social media – multiplies the word of mouth outreach for small and local businesses
I believe that small and local businesses can use the Internet to their benefit and continue to grow their revenues by tapping into the power of various digital tools and resources.
