We remember the industry 15 years a ago when there was not even ten vendors to go around. Creative Memories had started the scrapbook buzz and just a handful of stores had started out of Utah. It was hard to actually find enough products to even fill a 1,200 square foot store.  We opened the 7th store in the US, and were quite surprised with the instant success. The demand for product was on. In those days you did not go anywhere without a pH pen. We walked the aisles of Hallmark stores, gift stores and stationery stores looking for anything safe to put on our shelves.

Francis Meyer and, of course Mrs. Grossman were some of the first vendors along with Ellison, Pioneer and a few others. Immediately, new vendors began starting up everywhere. Everyone was in a hurry to capitalize on this exciting new industry.  Everyone but the Big Box retailers. Scrapbooking was not even on their radar yet.

Looking back, it is a shame that the start of any new industry really is on the backs of enterprising independent retailers. They are the ones who take the initial risks to develop an industry. They make the investment of time and money, they educate the vendors by telling them what is hot and selling. They are the ones who support the new magazines, attend the new trade shows, but in the end are all forgotten.

They are forsaken by all, as friendships and relationships are turned aside in an endeavor to cash in at their expense. Perhaps the retailers themselves are at fault. Is there really such thing as friendships or loyalty among businesses?  Were the retailers naïve to think that it was ever anything more than conversational research?  Hours of time in their stores, booths, on the phone with vendors and their reps may have seemed genuine, but what retailers mistakenly thought was time amongst friends was really only due diligence in an attempt to capture the next best thing. Even if there were some sincere friendships, were they sincere enough to protect them from the inevitable?

Many vendors have no problem turning their backs on the independents for the right price, but if they stood to lose immediate revenue from the independents at the same time, they may have thought twice.  The reality is that the vendors were able to do what they did without any consequence. 

The buying group leadership lacked any backbone or perhaps were afraid that if they tried to organize their group enough to fight back that they may lose a few members.  Not only were the independents betrayed by many vendors, but also by the groups they relied on to protect them.  Sometimes in order to lead you have to take the people in a direction they do not want to go for their own sake.  Yes, you may not be popular for the time being, but if you are paid to help and protect you will do it despite popularity or the loss of revenue.

Now the independents have lost a huge foot hold. They are in a boiling pot of water with a surreal fate. They feel the heat but unless they are willing to do something drastic immediately, the outcome is certain.
Can anything be done or is it too late?   Is there any fight left in the retailers or have they resolved to sit idly by and accept their fate. 
This does not have to be the end. Independents do not have to sit back and accept the scraps offered to them, but it will require a strong force of unity. It will require a plan that will not be popular among all. It will require participation, effort and even a little pain before the apathy shown over the past 5 years can be undone.

Independents have to stand up for themselves. They need to start supporting the vendors that support them. They need to stand behind the right leadership.  If there is no consequence for betrayal, then betrayal is certain.  For many, it is too late but for some it is just the beginning. 

The days for most independents are numbered without a change of course. 10 years ago, the Scrapbook industry was growing by 100 store openings a year. Today we are losing 100 stores a year. There is hope and you can be rest assured that there is a plan. The only thing left is to find out who will be on board.

The challenge may seem insurmountable. Many have already lost hope and feel too weak to carry on, but there are solutions to their problems. The ideas come from industries before us. Scrapbooking is not the only industry to suffer the challenges of Big Box retailers. All one has to do is look for those who have survived and study their strategies. Hundreds of industries have given way without a fight. They refused to accept the reality until it was too late, but there are also many that have discovered a way to compete by joining forces through a franchise-type model.  McDonald’s are independently owned, as are hundreds of other franchise organizations. The only way to complete with large chains is to become a large chain. How many independents did Wal-Mart and Home Depot put out of business?

Written by:
Scrapbook Business Magazine