05/02/1994

Research Determining Strengths, Weaknesses of Rural Retailers

AUBURN, Ala. - Drive through many small towns and you may see lots of abandoned storefronts. How can a town survive without these shops? Why do some shops close and others thrive? What can be done to retain their services in small towns?

These are questions being asked by Auburn University researchers in a study of rural retailing that may help revitalize small rural retail sales.

Evelyn Brannon, assistant professor of consumer affairs in Auburn University's School of Human Sciences, has been studying the strengths and weaknesses of small retail businesses in rural sections of Alabama. She has found that many factors influence the success of these businesses, and knowing these factors may help ensure a source of merchandise for all Alabamians.

"We have been conducting a case-study analysis of rural retailing in Alabama at six sites throughout the state," explained Brannon. Each site offers a slightly different scenario of rural retailing. Some are close to large outlet centers, others close to large cities or interstate systems and some are extremely isolated.

"This is a three-legged stool," explained Brannon. "The legs include the retailers, public officials and consumers. Our study is looking at all three legs and the interactions between these legs."

The study, which is being conducted through the Alabama Agricultural Experiment Station at Auburn, involves interviewing retailers, public officials and consumers. Using this information, researchers are determining what opportunities and barriers exist for these shops and what patterns contribute to their successes or failures. Brannon said this provides them with a rich data base from which assumptions and recommendations may be made.

They have found that it is difficult for small retailers to compete against larger retailers and outlet malls. However, niche marketing is one option that can help smaller retailers stay in business.

Results also suggest that policy makers can have an impact on the success or failure of small businesses by finding ways to encourage and support these small businesses. While many officials put emphasis on tourism and other forms of vitality, putting more emphasis on retailing may be a way to boost economic growth.

Another finding is that better retail mixes, or offering more diversity of goods, is a good way for retailers to survive.

"This is a quality of life issue," explained Brannon. "Some people choose to live in rural areas for those very reasons. By providing them more services, these rural areas can be vital and sustained."

This summer the researchers will complete the final phase of the study, which includes observing stores and consumers in these towns. By putting all these results together, they hope to develop ideas of ways to compete and thrive in rural America.

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News from:

Office of Ag Communications & Marketing

Auburn University College of Agriculture
Alabama Agricultural Experiment Station
3 Comer Hall, Auburn University
Auburn, AL 36849
334-844-4877 (PHONE) 334-844-5892 (FAX)

Contact Jamie Creamer, 334-844-2783 or jcreamer@auburn.edu
Contact Katie Jackson, 334-844-5886 or smithcl@auburn.edu

05/02/94