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What does the increase in the super stores such as JJB Sports and the recent acquisition program of Sportsworld mean to the small independent sports retailer?

Having spoken to over 1500 such retailers during the initial set up phase of Lookupsport.com, I feel the need to sound the alarm bell.

I spoke to a number of small multi-sports shops who have been driven out of business by the likes of Sportsworld and were in the process of closing, and even more who were finding life difficult thanks to the opening of large stores in their towns. However, this should not and must not spell the end of the independent sports retailer, but it will require a major shift in focus, and unfortunately I think that whats required may prove too great for many.

The problem, (if it can be called that), with the larger stores is that they tend to focus on sports fashion rather than sports equipment - the equipment they do stock tends to be large volume high discount, which has a market but is not suitable for everybody. Sports retailers, who are trying to compete in this market have been and are continuing to be driven out of business, as they are unable to compete on price.

This problem however, presents an opportunity for the more astute sports retailer. There has and always will be a need for small independent sports retailers willing and able to offer both specialist products and advice. People who are serious about their sport, will always seek out these types of shop rather than go to a large chain, where the chances are the sales assistant will have little or no knowledge of the products they are selling.

If these specialist retailers are able to embrace technology as well, they will not only be able to survive but will also be able to grow their business in the current market. This is proven by the number of small profitable online businesses being set up selling everything from football flags to golf balls. Many of these compete because they do not have the added cost of high street premises, while others see the internet as an extension of their current business.

Unfortunately, I have spoken to a large number of retailers, who refuse to accept the advance of the internet. One retailer told me Dont speak to me about the internet, its ruining my business. Unfortunately this is symptomatic of the British nations attitude to change of any kind, no matter how big or small. From the switch to the metric system, to the introduction of chip and pin and more recently the change in the postal system, anything which challenges the way things used to be is met with horror and outrage.

Other retailers have admittedly accepted that the internet is here to stay and have decided they need to have a website of their own. However, in the main they have committed the money and paid anything from 5000 and above for a website, but have not committed the time and energy to marketing it. They either believe, or have been led to believe that once the site is launched it will be miraculously found by thousands of buyers anxious to part with their money. This is simply not true as anybody with a successful online shop knows. As with any other business the key to success is in the marketing. Having an online store and not having a clear marketing strategy is like having a high street shop stuck in the middle of nowhere, and having it boarded up 7 days per week, so that nobody even knows what its called or that its even open.

So whats the answer?

Its clear that the internet is here to stay and in the right hands is a powerful tool, helping retailers to keep up with the competition and potentially enabling business growth.

However, retailers who have closed their eyes to the internet will need to open them quickly or face extinction. The younger generation have grown up with the internet and see it as an integral part of their life, and as current research shows the trend of online sales is increasing year on year. An attempt to resist this will lead to failure.

Those retailers that have already invested in a website need to put a clear marketing strategy in place. This could involve employing a Search Engine Optimisation expert, or a consultant (and there are thousands around willing to take your money), or they could invest some of their own time and hard work into this quite complex area. As a very minimum, they should be looking to take advantage to as much free or low cost advertising as possible. Many directories for example, offer a free entry with an option to upgrade to an enhanced listing. As with all marketing, the results should be measured and more time effort and money invested in those which bring in business. They should also set aside a budget for a Pay Per Click (PPC) campaign. Again, PPC is a complex area, but once the basics have been mastered, the hard work will be rewarded, with an increase in business and significant Return on Investment.

One thing is clear. It is the high street retailers, who understand the internet and see it as an extension of their business, who will succeed - especially if they are able to specialise within a certain sport or area of sport. Unfortunately those retailers, who refuse to open their eyes and see that the internet is here to stay, or who do not develop a clear online marketing strategy are destined for failure.

Fraser Mitchell had 15 years experience in purchasing and supply chain before moving into purchasing and supply chain recruitment. In May of this year he set up http://www.lookupsport.com the UKs first Sports Search Engine. For further information on any of the points raised in this article he can be contacted on fraser@lookupsport.com or on 01423 547689.