Will Shrinking Stores Shrink Customer Service?

The shift to online shopping has affected a lot of businesses. Magazines and newspapers are shrinking—in size and pages--as more readers turn to their Smartphones and IPads. Book retailers are shrinking or disappearing. Brick and mortar stores are expensive. It’s more cost effective to store and ship products from large warehouses in industrial parks than to staff and operate stores in pricier downtown or suburban locations.

One office supply chain to join the shrinking trend is Staples. An article in American Public Media’s Marketplace Business, "Staples shifts strategies to sell more products online," by Sarah Gardener, reported that Staples is closing or downsizing stores in Europe and the U.S. They are shifting more of their efforts to online shopping. 

And why not? Like any business, they have to stay a step ahead, or at least keep pace, with competitors. Younger customers are buying more online. Staples’ customer base is largely small businesses with under 500 employees, so it make sense to offer online shopping to those customers who want good prices and the convenience.

The article goes on to say the days of using costly floor space for “…hawking goods like pens and paper…,” are gone. While the shift to online may be good for small business, what about the average consumer or small startup company that needs the selection these specialty office stores provide? Will customer service shrink  for the startup or sole proprietor who needs quality goods but lacks the volume for online discounts? The shift to online may redefine  “small” business in a new economy and pose new customer service challenges as well.

1. Small Purchases. Stores like Staples offer variety and great pricing for the small business person who needs a ream of copy paper or a box of file folders. The ability to pick up a few quality items without meeting a minimum purchase for online orders helps keep costs down and funds available for other expenses. 
    
2. “Instant” Customer Gratification. Overnight shipping is still overnight. A twenty-four hour delay may not mean much to a large corporation, but to a small business trying to get a share of the business, it can be an eternity. The ability to run in and snatch a few items to complete a proposal or portfolio may be lost once the store disappears.
    
3. Returns. Most online returns take time. This is #2 above in reverse. Online returns tie up money that can be used for other business expenses. Getting a credit or cash back for a return in the store will more than likely be spent on more purchases. 
    
4. Shipping charges. Amazon.com has a free shipping policy for online purchases, but you have to spend at least $25 to get it. Small businesses may have to buy things they don’t need, just to get the free shipping. Good for Amazon, not so good for the small business owner. 
    
5. Loss of business services. Specialty office stores like Staples or Office Max have become a full-service business service provider for small business. Their copy centers, shipping services and in-house technical experts make doing business on a small scale easier with professional results. A business owner can tune up her laptop, print out training manuals and pick up supplies in one trip to the office store. The loss of business services housed in the brick-and-mortar store will eliminate services some small businesses depend on.

While some may applaud the shift to online, there are many who will be left with few alternatives. Office supplies are available at the local Kroger or Walgreens, but somehow it’s not the same.  While stores may be shifting their presence to online, they need to find ways to expand services that include all customers, regardless of size.

Image by Maggie Smith / freedigitalphotos.net