Smaller stores were dominating the market at one time. These small stores were carrying almost everything. However, there were many problems with these small stores and now they are becoming extinct. In this article, we will discuss the small stores downfall and the rise of the outlet stores for various industries. Let us start off by discussing why the small storesare declining. This was because of two main reasons. Firstly, small stores overcharge for every product that they keep as they cannot practice economies of scale and thus face a higher cost to make profits and so they transfer those costs to consumers. The other reason small stores are declining, is because they do not engage in promotional activities.
With time, several new outlet stores have opened and consumers have a lot of choice, bigger stores/outlets tend to advertise their location and deals/offers to entice customers to visit, while smaller stores did not. Smaller stores could not engage in such acts because most of them had limited funds, due to their high cost. They also offered few or no extra service with purchases.
Another important factor, which caused the demise of these small stores, was the increase in different outlets. Let us discuss what an outlet really is first. Unlike small stores, which carry a bit of every item, an outlet is dedicated to a single brand/company. Companies have now started opening their own outlet stores and are selling to their customers and potential customers directly. Recently, many industries such as clothing, fashion, hardware, building products and floor tiles have increased their number of outlets. Here is why.
The reason an outlet is more preferred nowadays is that they have a lot more variety; they offer good prices and promote their outlet. They also offer complementary services, on certain purchases. Since a company owns an outlet, it also has more access to funds. Therefore, an outlet can benefit from economies of scale and attract more customers. Another reason an increase in different outlet stores can be seen, is that it was more profitable for the companies to open their own stores, as they did not have to pay others to keep their items.
As already mentioned, a number of industries started opening their own outlets. Recently, all the floor tiles industries have joined in too. In order to compete with other companies, these floor tiles outlet stores are offering a number of unique tile services for their customers. If a customer visits a tile outlet, he will get a number of free tile services for his home/office. These tile services have helped people design their homes/offices better. These tile services were not offered by small shops and the outlets that offer such tile services, have gained a lot of attention from people.
The industry is coming up with more unique tile services to beat other companies in the sector. Such tile services made consumers prefer outlet store shopping as compared to the online tiles sites. Apart from the many services, the tile industries ensured that they provided exceptional customer service too. Therefore, soon we can also predict the demise of all small tile outlet stores too.
You can compare prices or buy tiles online at online outlet store or visit our showroom.
