If you move it, they will come. Move locations that is. Summer NAMM in Nashville from June 20 to 22 was a huge hit, with a 36 percent increase in the number of people walking through the turnstiles to 17,473. Most manufacturers were upbeat throughout, including one who told us they had more traffic on the first day of the show compared to the entire show in Austin in 2007. The stellar turnout clearly cements Nashville as the home of Summer NAMM for the foreseeable future, especially with a new convention center expected to be ready by 2012.
 The popular Friday morning NAMM University breakfast session featured NAMM President and CEO Joe Lamond hosting “The State of the Industry Address.” NAMM’s theme during the show was to celebrate the independent retailer. “America is small business,” said Lamond. “Ninety percent of all businesses in America employ less than 20 people…Small business accounts for 40 percent of our [Gross Domestic Product] and 66 percent of all jobs. Our membership numbers are reflecting this as well. There’s a very interesting trend we’re seeing. NAMM’s membership numbers grew significantly over the last year. Many of these stores are small stores that are just beginning today.”
Challenges of the Future: The Rebirth of Small Independent Retail in America is a report that echoed some of the things Lamond said he has seen in his massive travels. “Across America,” he said, “it seemed like the pendulum was swinging from big to custom, small, direct, and more customer focus in retail. In my heart, I believe the pendulum is swinging and there is going to be a rebirth of independent retailers in America.”
Jack Stanyon, writer of the report, Pat Johnson, co-founder of the Retail Owners Institute, and Otto Papasadero, director of the North American Retail Dealers Association, were Lamond’s first guests. “Part of the goal of the report was to provide some inspiration,” said Stanyon. “Generation Y is going to be the largest consumer group in the history of the United States. That’s a tremendous opportunity. I saw a trend toward personalization. We all want things a certain way. Small independents can give that service better than larger companies can. Americans are getting sick of bureaucracy.
They are tired of things that don’t work. That leads to this rebirth.”
Rooting for the underdog will also help indie retailers in the future, said Stanyon. Although he didn’t mention specific examples, we often see this factor arise in sports, such as this season, with some pledging their allegiance to the small-market, miniscule payroll of the Tampa Bay Rays.
Stanyon added that improving technologies allow smaller companies to do many of the same things as larger companies. But he brought up how amazed he was about how poor service was in every facet of our lives. “We all give lip service to it,” he said. “We understand this is the lifeblood for small independent retail, and is the most differentiating characteristic. Yet, across the board, it always seems to be lacking. Let me give you an example. We’re all familiar with Southwest Airlines and [former CEO] Herb Kelleher. Its last annual meeting was held a couple of months ago. Interestingly, over the years, American Airlines and Southwest have held their meetings on the exact same day. During American’s meeting, there were pilots picketing outside. During Southwest’s meeting, they took out a ‘thank you’ ad to Herb as he stepped down as chairman. The reason why Southwest is so successful is Herb has a philosophy of treating your employees as if they are your customers. It’s very simple.”
Papasadero continued by mentioning he was in the audience when Steve Wynn, owner of gambling operator Wynn Resorts, was asked what the secrets to his success were. “The answers were simple. Curb appeal and the frontline staff. Curb appeal is how you compare with retail expectations, which leads to making investments in your presentations and I’ve found the payback comes in about three and a-half years. That also gives your external customer a renewed energy. It’s like walking into your home for the first time after you remodeled it. As for frontline, any time an employee comes in contact with a customer, they must be excited and have a passion.”
Johnson said she “absolutely” saw a rebirth of the independent retailer, although dealers are being reborn in new ways. “You have the Baby Boomers, who can now afford to spend money on themselves. Then you have Generation Y, which is greater in number than Baby Boomers. They are the on-demand information age. ‘I want it now. I want it on my own terms.’ The opportunity of the [Internet] enables that to happen. Going forward, the three most important factors in retail will no longer be location, location, location. It will be connection, connection, connection. Specialty retailers are able to survive and succeed because they have information. You have a passion for what you’re doing. You have the knowledge. People on your staff have that knowledge. You have the opportunity to use your Web site not as a Yellow Pages ad, but as a way to connect to your customer, who is no longer in a 10-mile radius. The world truly is flat. Your customers will find you if you are able to provide the information they need.”
“I’m not sure about rebirth, but I think it’s onward and upward,” added Papasadero. “I think everyone can think of an independent business in your neighborhood that is bucking the trend and is unique.”
Lamond subsequently interviewed Gordy Wilcher, owner of Owensboro Music Center in Owensboro, Ky., and president of the IMRA/MSO consortium; Billy Bones, owner of Sparrow Guitars, and Bobby Boyles, owner of Oklahoma Vintage Guitar.
Lamond asked Wilcher about the growth of buying and sharing groups. “One of the best things to happen in my business is being involved in one of these groups,” responded Wilcher. “[MSO and IMRA] really started just as ways to communicate. The store in the next town is not my enemy. They are my friend. We have to unite and come together. There are so many little things you learn from independent retailers. For example, my store is located right next to the regional hospital. There are 250 doctor’s offices and someone on our [Internet] forum said, ‘Why don’t you take the product brochures, staple your card to them and leave them in the offices.’ How many times do you sit in a doctor’s office and read Travel and Leisure or Good Housekeeping? It was a really good idea I got from someone else to help [build customers].”
Wilcher added that although there’s no way for us to change variables such as skyrocketing fuel prices, you can take advantage of those factors. “Maybe they can’t go to Disneyland, so they can come to my store instead and find a nice Martin,” he said. “Actually, business is not that bad. We have some great opportunities.”
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