How Local Businesses Can Compete and Thrive in the Age of Amazon and Big Box Retail

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How local businesses can survive and thrive in Thunder Bay

How the City of Thunder Bay Can Help Local Businesses Compete and Thrive

Convenience won the first round — community, expertise, and experience can win the next

THUNDER BAY — Online shopping has rewritten consumer expectations. People can order almost anything at any time, compare prices in seconds, and have it delivered to their door in a day or two. Add big box chains with massive buying power and aggressive pricing, and it’s understandable why locally owned businesses can feel squeezed.

But local doesn’t have to mean vulnerable. In many categories, independents can compete — not by trying to out-Amazon Amazon, but by building strengths the giants can’t easily replicate: relationships, specialization, trust, speed in the last mile, and a meaningful presence in the community. The most resilient local businesses operate less like “small versions of big retailers,” and more like high-value hubs that solve problems, deliver experiences, and keep money circulating in the region.

What follows are practical, business-focused strategies — with a Thunder Bay/Northwestern Ontario lens — that help local businesses not only survive, but grow.

The new competitive reality

Amazon wins on three things

  1. Selection (endless inventory)

  2. Frictionless buying (fast checkout, reliable delivery)

  3. Perceived value (often cheaper, always convenient)

Big box chains win on:

  • Scale pricing

  • Strong supply chains

  • One-stop shopping

Local businesses can’t beat those advantages head-on across the board. The way forward is to choose where to win.

In Thunder Bay, we have some real local gems that are go-to businesses – Maier Hardware is my go-to when I am stuck trying to find a specific part. Their friendly and knowledgeable staff go out of their way to help find it.

Imagetech on Memorial Drive is another. For the local photographer, while it is easier to go online and order, often this small shop will have what you need, and has it in stock.

Music World Academy on Simpson Street is a local gem as well. They have a great stock, very helpful staff and more often than not, have just what you need in stock.

For the cyclist, 3Ride inside Goods & Co on Red River Road is another local company that treats its customers like gold. They are helpful, interested in getting your cycling needs covered with what you need, and the service is simply incredible.

Warrior Supplies, located on Tungsten is another pretty incredible local business. Chances are if you need it, they have it. Jason Thompson and his team are part of a real evolution in local business. If you have not checked them out, my suggestion is drop by.

We have so many local businesses who offer exceptional service, these four are just a few of the ones I have used over the years and have never had a negative experience.

To be honest, chances are that you have your list of local go-to businesses too. What matters is in times when we get busy, we need to remember those businesses.

Compete where you have structural advantages

1) Be faster than shipping in the moments that matter

A surprising amount of purchasing is urgent: a part breaks, a gift is needed, the wrong size shows up, a project is happening today.

Local businesses can win with:

  • Same-day pickup (true “instant gratification”)

  • Local delivery partnerships (even a small flat-fee option)

  • Reserve online, pickup in-store (simple and powerful)

  • Text-to-hold service (“Message us, we’ll hold it at the counter”)

If you can solve a customer’s problem today, shipping becomes less attractive.

With winter weather often closing local highways, shipping delays are increasingly common. The local shop that has it in stock has a real advantage.

2) Specialize so deeply that customers seek you out

General stores struggle against endless online catalogues. Specialists thrive.

Examples of defensible specialization:

  • Outdoor gear focused on local conditions (lake effect snow, cold weather layering, ice fishing specifics)

  • Trades and DIY supplies with knowledge + inventory discipline (the right fasteners, tools, safety gear)

  • Cooking shops built around classes, local ingredients, and expertise

  • Fashion boutiques that offer fit guidance, alterations, and curated stock

Specialists aren’t competing on “who has more.” They compete on “who knows more” and “who makes this easy.”

3) Sell solutions, not products

Online shopping sells items. Local businesses can sell outcomes.

Instead of “a snowblower,” sell:

  • “The right snowblower for your driveway + setup + fuel + maintenance plan + emergency support.”

Instead of “a laptop,” sell:

  • “A laptop that fits your school/work needs + setup + data transfer + local troubleshooting.”

Bundled solutions reduce price-shopping because you’re no longer comparing identical items.

Build moat-like strengths Amazon can’t copy

4) Turn service into a profit centre

Service is one of the best anti-Amazon advantages — and it can be monetized.

Ways to package it:

  • Memberships (annual tune-ups, priority bookings, discounts)

  • Maintenance plans (seasonal servicing, reminders, pickup/drop-off)

  • Paid consults (credit the fee toward purchase)

  • Workshops (skills training that leads to product sales)

This creates recurring revenue and keeps customers attached to you, not a search bar.

5) Make your store an experience people choose

If your store is only a transaction, online wins. If it’s a destination, local wins.

Experience drivers:

  • Staff who remember names and preferences

  • Product demos, try-before-you-buy, sampling

  • Events: launches, community nights, local makers markets

  • “Meet the expert” sessions (nutrition, tech, home repair, outdoor safety)

The goal is to become part of someone’s routine, not just a place they visit when desperate.

6) Win on trust, authenticity, and after-sale support

Customers are increasingly wary of counterfeit goods, junk listings, warranty hassles, and returns with online marketplaces.

Local businesses can lead with:

  • Clear warranties and straightforward returns

  • Real accountability (“Come in, we’ll fix it”)

  • Quality control (curated inventory, fewer duds)

  • Local reputation (reviews, community presence, consistency)

Trust is a business asset. Treat it like one.

Digital isn’t the enemy — being invisible is

7) Be easy to find and easy to buy from online

You don’t need a massive e-commerce build to get 80% of the value.

Start with basics:

  • Google Business Profile: accurate hours, photos, posts, Q&A

  • Local SEO pages: “in Thunder Bay,” “serving Northwestern Ontario”

  • Inventory signals: “in stock today,” even if it’s a weekly updated list

  • Messaging: click-to-call, click-to-text, instant replies where possible

Many customers search online even when they want to buy local. The question is: do they find you first?

8) Use social media for utility, not just promotion

Local businesses often post “sale, sale, sale.” The better play is becoming useful.

Content that converts:

  • How-to videos (1 minute, simple)

  • What’s new this week

  • “Staff pick” + why it’s worth it

  • Seasonal guides (winter driving kit, storm prep, back-to-school tech)

  • Problem-solving posts (“If your pipes freeze…”)

Utility creates trust. Trust creates sales.

9) Compete with curated online ordering, not infinite choice

A small online catalogue can work if it’s curated:

  • Best sellers

  • Seasonal needs

  • High-margin categories

  • Local favourites

The win is “we picked the right stuff and it’s ready now,” not “we carry everything.”

Pricing strategy without racing to the bottom

10) Don’t match prices — justify value

If you match Amazon on every item, you lose margin and still don’t win convenience.

Better options:

  • Price match selectively (only on key traffic-driving items)

  • Bundle value (free setup, local support, accessories)

  • Private label / exclusive products (local makers, limited drops)

  • Good-better-best tiers so customers choose by value, not price alone

You’re not selling “cheap.” You’re selling “worth it.

11) Use loyalty and retention to increase lifetime value

A repeat customer is cheaper than a new one.

Tactics:

  • Points or perks (early access, free service checks)

  • Referral credits

  • Birthday offers

  • “Local VIP” membership

  • Post-purchase follow-ups (“How did it fit? Need help?”)

Retention is the small business growth engine most owners underuse.

Partner your way to scale

12) Collaborate locally instead of competing locally

Independent businesses can create “big box” convenience together:

  • Shared delivery service

  • Joint seasonal promotions (Downtown “Winter Ready” week)

  • Cross-promotions (buy here, get perk there)

  • Local marketplace directory (single hub for shopping local)

In a region like Northwestern Ontario, collaboration can create a network effect that benefits everyone.

13) Sell to institutions and employers

Local businesses often overlook B2B:

  • Corporate gifts

  • School and office supplies

  • Maintenance contracts

  • Bulk ordering for camps, lodges, contractors

  • Subscription snack/coffee programs

B2B stabilizes revenue and is less vulnerable to impulse online shopping.

Need Help?

The Community Economic Development Corporation (CEDC) offers a wide range of supports for small businesses in Thunder Bay. The CEDC Small Business Development Officer works one-on-one with entrepreneurs and business owners to help them start, grow, and succeed.

Businesses can access support in areas such as business planning, digital marketing, succession planning, and general business guidance, including up-to-date advice, workshops, and practical resources. All services are confidential and provided at no cost, helping entrepreneurs turn new ideas into viable businesses.

Another key resource is the CEDC Business Portal, which offers easy access to information and online tools. We also encourage anyone looking to start, purchase, or grow a business to book a meeting with our Small Business Development Officer to explore available supports.

The Thunder Bay advantage: community and distance

Northwestern Ontario has a unique factor: distance and weather. When shipping delays happen or returns are complicated, local becomes even more attractive.

Strong local businesses can frame their value around:

  • Reliability in winter

  • Immediate problem-solving

  • Knowledge of local conditions

  • Keeping jobs and services in the region

This isn’t guilt-based “shop local.” It’s practical: “Here’s why this is easier and better for you.”

What thriving local businesses do differently

They typically:

  • Choose a niche and own it

  • Build recurring revenue through service and memberships

  • Make buying easy (online discovery + fast pickup)

  • Turn the store into a community experience

  • Focus on retention and relationships

  • Collaborate for scale

The future isn’t “local vs online.” It’s local + digital + community + expertise — a model that big platforms struggle to truly replicate.

What the City of Thunder Bay can do to support local businesses

Treat timely snow clearing in business districts as economic infrastructure

Winter access affects whether shoppers stop locally or default to big box lots and online ordering.

City actions that matter:

  • Prioritize plowing and sanding on commercial corridors, not only vehicle lanes

  • Clear sidewalks, bus stops, curb cuts, crosswalks, and accessible parking quickly

  • Reduce snowbanks that block storefront visibility, entrances, and parking spaces

  • Coordinate clearing timelines with business hours, not just overnight routes

When downtown and neighbourhood commercial areas are hard to walk or park in, convenience shifts away from local shops.

Make City procurement “local-first” whenever feasible

Municipal and agency purchasing has real economic impact.

Steps that help:

  • Adopt clear local-first procurement practices where possible

  • Break large contracts into smaller bid opportunities for local suppliers

  • Score bids on best value, including service response time and local support—not only price

  • Publish a yearly snapshot of local procurement spending to improve accountability

Choosing local suppliers keeps more dollars circulating in the community.

Improve access: parking, pickup zones, and winter navigation

  • Better winter coordination so parking spaces remain usable

  • Short-stay pickup zones to support local “order online, pick up” behaviour

  • Clear signage to lots and consideration of seasonal parking incentives during peak retail periods

Reduce red tape for small operators

  • Streamlined permits and consistent timelines

  • Easier approvals for patios, seasonal signage, pop-ups, and markets

  • “Permit clinics” that help small businesses navigate requirements without delays

Invest in district experience and year-round activity

  • Lighting, streetscaping, and pedestrian comfort—especially in winter

  • Support for markets and community events that drive foot traffic

  • Strong transit access to shopping districts

The bottom line

Local businesses don’t have to beat Amazon at being Amazon. That is likely a goal they won’t win fighting to achieve. They can win by being faster locally, more trusted, more helpful, and more connected—and by making shopping feel human again.

At the same time, the City can strengthen local commerce through practical choices that influence daily behaviour. Two of the most immediate:

  1. Timely snow and sidewalk clearing in commercial areas, so customers can safely reach storefronts.

  2. City procurement that supports local suppliers whenever feasible, keeping public dollars working locally.

In Thunder Bay, and across Northwestern Ontario, we have many real gems in our city.

Supporting those businesses with your dollars, helps the local economy, and honestly just feels good.

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James Murray
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