FROM OUR JANUARY ISSUE: SUCCESSION PLANNING IN INDEPENDENT RETAIL

The entire MR team proudly presents our January 2025 issue. If you haven’t received a hard copy, please page through  our digital version, and we’ll continue to post individual stories here on  MR-mag.com. If you haven’t been getting MR in print, be sure that you are on our mailing list for future issues by completing  this form.   

Before I started my apparel business, I tried to buy a retail store that I loved in a mountain town. Any time we were down the road at a favorite restaurant, my husband would disappear for a minute and come back with a small gift from that store. I started conversations with the owner about buying her store. We shared financials and started talking about terms and pricing. Then she stopped answering her phone.

Dozens of calls, letters, emails, and two months later, I found she’d closed her doors and shut down the business. The puzzle I pieced together was two-fold: her financials weren’t ready, and it was too emotional for her to have someone else own it. She did what she felt she had to do, but for the rest of us, the hole she left on that prime corner was felt for years. She was important. Her store was important.

When retailers gather, the conversation is mostly about running the business day to day, planning the next buy, merchandising, staffing, and all the things that make up the operations of a business. Succession comes up, but mostly, it hangs there as something to deal with later. But what happens to your store when you’re not there to run it or choose to move on to what’s next?

It’s not just about you. Your store plays a role in your community and its culture, and the relationships you and your store are vital to nurturing. What happens to your community if you just shut down?

There is value in what you’ve built. The relationships nurtured and the repeat business year over year take time and experience – they’re invaluable.Many of you report that 60-85% of your business is repeat. Consider the cost of customer acquisition for a new store and the time required to earn trust.

Think about legacy. Independent retail stories are full of history and richness. The trials range from face-offs with Mother Nature to world financial crises to just bad bouts of business decisions. You’ve learned lessons from those moments, now built into how you operate. You can’t recreate that richness overnight.

Promote investment opportunities. There are opportunities out there that no one knows about until we start talking about them. Cindy Purnell, owner of Post & Rail Men’s Shop in Ligonier, PA, says,“The store will be 50 years old this year. It’s a lot to be proud of. At 78, I want this store to continue. I’m hoping somebody picks up the phone and calls me or walks in the door and says, ‘I’m interested in owning this store.’ It’s hard to slow down and give succession the proactive attention it deserves. It means acknowledging there will be a next chapter…and then doing something about it.”

Work-to-own training. There are job training, apprenticeship and work-toown positions out there that can help you with staffing and provide aspiring business owners a way to learn and earn. Ron Brodeur, proprietor of Brodeur Carvell in Fort Myers, FL, talks about training someone into the business. “I’m willing to train someone who believes custom is the right business to go into. The market is growing. The right person would grow as the business grows.”

Friends and family. A family member might be interested. You don’t realize it because you haven’t talked about it. If you’re lucky, you’ve got an inspired family member who finds passion in your business and has already found you. Danny Reynolds, owner of Stephenson’s of Elkhart in Indiana, talks about working with his daughter. “One of the most exciting things for me is that my daughter has joined the business. Unlike me, she knew from the time she was five years old that she wanted to do this. She has retail running through her veins and brains. I never did. Together, we make a pretty dangerous team.” Start talking about the opportunities and your intentions. Once you initiate the topic, someone might surprise you and step up.

Find an Expert. There are experts who can help you understand options, so you aren’t just waiting around for succession to solve itself. A good start is your CPA or financial planner.

Bottom line: We want more independent stores around. The personalized service. The relationship-based business. The community bonds and foundations. The benefits are resounding. Yes, planning for the next stages is hard, intentional work and preparation can take years. Who has the time? Where do I start? My kids aren’t interested. I don’t need to think about that yet. I’m not ready to retire or do something else. I’ve got time to figure it out. Start talking about it now. Later is now.