Small retailers ramp up holiday message to compete with the big boxes

During the holiday season, small retailers feel like the little kid in a big family, jumping up and down to get attention. They can't match the pre-Black Friday hoopla of the big-box stores, so they're trying new ways to say, "Hey, look at me!"

American Express launched the most successful national campaign in 2010 naming the Saturday after Black Friday "Small Business Saturday." It's a win-win-win with consumers getting discounts at participating small businesses when they use an Amex card, retailers receiving tons of free TV advertising for the event, and American Express adding more retailers that accept its cards.

Now, small businesses are also experimenting with a new concept without corporate sponsorship. The "Plaid Friday" promo has arrived in the Twin Cities after a grass roots "shop local" launch in Oakland, Calif., several years ago. Taken from the idea that individual threads of small businesses woven together creates a strong fabric, Plaid Friday represents a relaxing alternative to the big box Black Friday, said Mary Hamel, executive director of the Twin Cities Metro Independent Business Alliance.

"It's about finding unique gifts, better service, and keeping the dollars local," she said. Moss Envy eco shop, Magers & Quinn bookstore, Peapods toy shop, Grand Hand Gallery and Bibelot gifts are participating and adding special offers during the event.

With national and local promos, independent retailers are trying to get a larger share of the $800 the average American is expected to spend on holiday gifts. They have their work cut out for them. Although shoppers spent $5.7 billion in independent merchants last year on Small Business Saturday it's still a small portion of the $59 billion total spent during the four-day weekend, according to the National Retail Federation. In the Twin Cities, for example, shoppers planned to spend only about 17 percent of their holiday budget at non-mall stores, according to 2013 spending survey by the University of St. Thomas.

That's why small retailers such as Kerry Ciardelli, owner of Victory Home & Interiors in the Linden Hills neighborhood, published the Scout Guide publication this year. The Minneapolis version is part of a network of 60 city guides that features local, independent boutiques, restaurants, galleries and design studios.

The practical but stunningly photographed booklet is available at all of the featured businesses, including Victory home goods, Brightwater outdoor clothing and gear, Martin Patrick men's and home, D. Nolo boutique, Goodnight Moon for babies, Max's jewelry, the Northern Clay Center and the Wow Bar salon. The sturdy light-blue guide with more than 40 retailers and service providers was released last month.

Bill Damberg, who owns the Brightwater outdoor clothing and gear shop in downtown Excelsior and Edina, said the Scout Guide, out for only a few weeks, has already been very good for his business. "We've seen a 15 to 20 percent increase in foot traffic and sales since it came out."

His store is one of many stores in downtown Excelsior that participate in a flurry of activities before and after Black Friday, including an indoor Winter Farmer's Market on Thursdays from Nov. 20 to Dec. 18. A weekly shopping guide e-mail blast will be sent to those who have contacted the Excelsior Chamber of Commerce for event notification, a first for the chamber. "It's part of our guerrilla marketing campaign," said Laura Hotvet, executive director of the Excelsior Lake Minnetonka Chamber of Commerce. She expects the city's outdoor market on Thanksgiving weekend, modeled after the Christkindlesmarkt in Germany, to be a big draw.

Other suburban downtowns are doing similar campaigns. Anoka's campaign this year is "Over the River and Through the Shops" which includes registering to win $250 shopping sprees, hayrides, carolers, Santa, the lighting of the city Christmas tree at City Hall, and live holiday performances at the Lyric Arts Main Street Stage. "We're doing more promoting this year," said Yrazema Garcia, owner of an artists' boutique called Chema Malu. "We want people to remember us not only on Small Business Saturday but year round."

In St. Paul and Minneapolis, established neighborhood shopping areas such as Grand Avenue have day long holiday events (Grand Meander, Dec. 6), but some neighborhoods are celebrating earlier. Several businesses along Central Avenue NE. in Minneapolis are joining together Saturday for a housewarming party featuring live music at the Recovery Bike Shop. Door prize tickets will be handed out for each $20 spent at businesses such as the bike shop, Aki's Breadhouse, Fair State Brewing Cooperative, Eastside Food Co-op and Sen Yai Sen Lek restaurant. "We chose to do our event earlier because the Black Friday rush is a saturated market, " said Brian Fanelli at Recovery Bike Shop in Minneapolis. "The hyper local cooperative spirit doesn't get captured later in the season."

Independent retailers with destination stores have learned to be more creative during the holidays, said Ellen Hertz, owner of Max's jewelry in St. Louis Park at Excelsior and Grand. "Our holiday window and tree went up on November 3 when it was 50 degrees out," Hertz said. "But we need to put ideas in people's minds before they start their holiday shopping."