If you feel your store lacks appeal or customers visit only to leave disappointed by the lack of exciting merchandise on your shelves, consider turning into a specialty retailer.
When most people think of specialty retailers, they assume that the only thing these types of stores sell is specialty items. However, this isn’t always true—specialty retailers can sell just about anything—they specialize in certain areas.
In this blog, we’ll explore what makes a specialty retailer different from other businesses and how you can apply that strategy to your store.
What Is a Specialty Retailer?
A specialty retailer focuses on selling a specific type of product. For example, if you were to start a specialty retail store, it would only sell things related to camping gear. This could include tents, sleeping bags, and backpacks—anything else would be off-limits!
The idea behind specialty retail stores is that if you know what you’re selling, it will be easier to sell it. Think about the last time you went into a store that sold camping gear—wasn’t it easy for them to help you find what you needed? They knew everything about their products and could advise which would work best for your needs.
Types of Products or Services Offered by Specialty Retailers
Specialty retailers are known for selling a specific type of product or service. This could be anything from camping gear to clothing to jewelry.
The most common types of products or services offered by specialty retailers include:
- Fashion accessories (watches, handbags, and shoes)
- Cosmetics (makeup and skincare products)
- Food (prepared meals for home delivery)
- Pharmacy items (prescription drugs)
- Electronics (cameras and electronics accessories)
- Home goods (ranging from furniture to decor items)
- Electronics (computers and cameras)
- Home decor items (furniture, lighting, and rugs)
- Health and beauty products (supplements and vitamins)
- Electronics (cell phones, computers, audio equipment)
- Sporting goods (equipment and apparel for various sports)
Specialty retailers often focus on a specific niche or category, providing consumers with more variety and higher quality options than in mainstream stores.
For example, a furniture store could focus on selling high-end pieces and offer various colors and styles. In contrast, a home décor store might specialize in one type of style (like midcentury modern or rustic) or price point (from affordable to luxury). This can be an effective strategy because it allows specialty retailers to build trust with their customers based on their specific products.
To succeed with this strategy, you must find a category or niche with enough demand to support your store. If you’re in an overly competitive environment, it can be tough for any small business owner to stand out. If there are not many other options available for people looking for the specific product you’re selling, then your business thrives.
Choosing Which Products or Services to Offer
The product lines you offer as a specialty retailer are among your most important decisions. You want to choose items that will be profitable for your business—and not just because they’re trendy.
Products that are too expensive or difficult to ship can also make it difficult for retailers to earn a profit. Therefore, you should choose products that will sell well. If your specialty store sells apparel, focusing on selling unique or hard-to-find items might make sense.
For example, if you notice that students at a nearby college like to wear certain brands of shoes or jeans, then offering those items could be beneficial.
Here are some factors that you should consider when you’re choosing products for your specialty store:
- The cost of the item
- Its popularity among customers
- Its size and weight—you’ll need to make sure that it will fit in your inventory or on your shelves
- The number of available products
- The demand for the item—if people keep buying it, then it’s probably a good idea to stock more of it
- The condition of the item—if it’s damaged or used, then you shouldn’t buy it
- The location of the store where you’ll be selling these items—you should choose products that are popular in that area
After considering these factors, you can choose the best products for your store. When you’re deciding which items to stock, it’s essential to think about the customer experience as well. You want them to find what they’re looking for easily and quickly so they can get in and out of your store with a smile!
You can invest in high-end retail displays to make your store look more professional and appealing. You can even get custom displays designed and built to fit your store’s needs.
Marketing Strategies for Specialty Retailers
If you have a specialty store, then you know that it can be challenging to attract customers in the first place. The competition is fierce, especially if you’re trying to sell things that aren’t mainstream. To get more customers through the doors of your store, try these strategies:
- Find a niche market—if there’s something specific that people want or need (like gluten-free food), then go after those customers.
- Create an engaging brand and marketing campaign—focus on what sets your business apart from others in the area.
- Test out new products—If you’re a small business owner, you must test out new products. If something doesn’t sell well the first time, don’t be afraid to discontinue it—this will help focus on what works and what doesn’t.
- Use social media—it’s a great way to connect with customers and spread the word about your store.
- Offer customer service—If you’re selling something that isn’t mainstream (such as gluten-free food), provide excellent customer service. It’s also important to make customers feel welcome in your store.
- Create a loyalty program—You can entice customers to shop at your store by creating a loyalty program. Offer special promotions and discounts on items people need—this will encourage them to return.
- Make your store more attractive to draw customers in, including investing in your merchandise display cases—the more appealing it is, the more likely people are to visit.
- Offer a wide variety of products—if your customers don’t find what they want, chances are good that they’ll shop elsewhere.
- Try a new marketing strategy—if you’ve already tried all of the above, it might be time to try something new. Try placing an ad in the local newspaper or Craigslist, for example. Run a contest or giveaway on social media—these can help increase brand awareness and generate traffic to your store.
Marketing your store is about more than just getting people to visit. It’s also about making them return time and time. To do this, you’ll need to offer customers a good experience every time they come in—whether that means having the best products on the market or providing excellent customer service.
Now, let’s take a look at some of the ways you can create a unique identity for your brand and stand out from your competition:
- Use your store’s location as an advantage. If you’re situated in a busy area, try to use the foot traffic by offering customers something special when they visit. For example, offer discounts for students or professors if you’re near a college campus.
- Create a unique experience with your products or services. This can mean offering something other stores don’t have—such as vintage furniture refurbished by hand—or it could mean providing extra customer service (like helping customers pick out items based on their needs).
- Make sure your store has a strong brand identity and consistent look across all platforms (including social media profiles).
- Promote your store with signage outside and inside your building—this will help people find it when looking for something specific.
- You can also promote your store through social media. This is especially helpful if you have an online shop that doesn’t have a physical location. When creating an ad for Instagram, Facebook, or Twitter, try to focus on how your product will benefit the customer’s life rather than just showing off its features—this will help people understand why they should buy from you instead of someone else.
- The key to successful customer service is knowing your customers and meeting their needs. Ask them what they’re looking for and how they want to be treated when they visit your store—then use this information as the starting point of a strategy that will help you stand out from competitors.
Creating a Unique Shopping Experience
One way to make your store stand out is by creating a unique shopping experience. You don’t have to offer something completely different from other shops—ensure customers feel they’re getting more than just a product when they come in.
For instance, if you sell clothing and accessories, include items for purchase that aren’t displayed anywhere else—and not just because they’re trendy but because they serve some practical purpose (for example, protecting skin from the sun).
Here’s how you can create a unique shopping experience:
- Offer special services. For example, if you sell clothing and accessories, give clients the option of having their items tailored by an in-house seamstress or purchasing items that have been refurbished.
- Host events. Hosting events can draw customers from outside your immediate area (beyond your state). Events might be as simple as an open house during which customers can try on clothing they’re considering buying or have a cup of coffee while listening to music;
- Offer membership programs. Membership programs are a great way to build customer loyalty (and encourage repeat business) because they offer benefits that non-members can’t take advantage of. For example, you could offer your customers discounts on special purchases (such as 20% off all clothing items in stock), priority service when they enter the store, event invitations, and other perks.
- Offer a loyalty program. You can also reward loyal customers by offering them perks or discounts. For example, if they spent $100 at your store within one month, you could give them a 10% discount on their next purchase; or if they spend $300 within two months, they could get 20% off their next purchase (and so on).
You can even use the latest technology, like virtual try-ons and augmented reality features, to make the shopping experience more personalized and engaging. For example, you could use an augmented reality app to let customers try different versions without leaving their homes.
Advantages of Owning a Specialty Retail Business
Here are some of the advantages you can enjoy when you own a specialty retail business.
Simple To Start
Opening a small store is easy, and most of the equipment you need—such as bags or boxes to hold merchandise—is relatively inexpensive.
Quick To Be Profitable
It can be profitable right away. Unlike other types of stores (such as department stores) that sell products from many different brands simultaneously, specialty retailers only sell products from one brand—and usually have higher margins than other types of shops.
Easy To Manage
You don’t have to worry about keeping track of inventory because you only stock products from one brand—and if something is out of stock or becomes unavailable, your supplier will notify you immediately so that you can order more and avoid any disruptions in service.
Low Risk
It has a low-risk factor. If your specialty store doesn’t perform well, you can close it down without losing a lot of money and try something else instead.
Build Your Brand
It’s an excellent way to build your brand. If your specialty store is successful, you can parlay it into launching more stores in other locations.
Learn A New Industry
It helps you learn about a new industry. Specialty stores allow retailers to learn about new industries, as they sell products that fall under a variety of categories—including apparel and accessories; home décor items (e.g., furniture); sporting goods (e.g., equipment for golfers); etcetera.
Challenges of Owning a Specialty Retail Business
While owning a specialty retail business has many benefits, there are also some challenges that you should be aware of.
Store Locations
It can be hard to find locations for your stores. You may not have many options when it comes to finding a good location for your store because specialty retailers cater to specific customer groups and products, so they don’t often overlap with other types of businesses.
Building a Customer Base Takes Time
It takes time to build up a customer base. Although your product line may be familiar to some customers because they’ve shopped at other stores with similar merchandise, it will take time for them to recognize—and become loyal shoppers of!
Difficult To Expand
It’s difficult to expand your business. Because specialty retailers rely on a specific customer group, there may not be enough demand to support additional stores in your local area. If you want to open more shops or add new product lines, you might have to relocate. However—if done carelessly—your store could become overly specialized and lose its appeal with potential customers who don’t share the same interests as those catered by other nearby institutions.
Conclusion
When it comes to specialty retail, the term is quite broad. It can be used to describe anything from a store that sells only fishing equipment to one that deals exclusively in toys for children ages 2-5. Because there’s such an array of possible specialties, choosing wisely before you launch your business is important. If done correctly, however—and with patience and determination—your efforts will pay off in the form of loyal customers who return repeatedly!
