Can small merchants remain viable in the current retail environment? Michael Bergdahl's answer: Small retail merchants can compete, survive and thrive in a “big box” world. Many actually “draft” off the additional traffic the big box retailer brings to town. Unless a small local retailer is in the discounting business they need to avoid trying to act like a discounter. Many small retailers have tried to act like discounters and proven this approach is destined to fail. In order to succeed in a big box world, local retailers need to differentiate their product offerings and avoid trying to compete on price. Not all consumers want the lowest priced and lowest quality merchandise. A good strategy is to offer products not offered by the big box stores. Another good idea is to offer in home services, parts and repairs. As an example, Wal-Mart sells low priced, lower quality vacuum cleaners but it doesn’t offer higher quality models, parts, nor does it repair vacuum cleaners or offer in home service, etc.