Once upon a time, most businesses were mom-and-pop shops. These days, the business world has evolved, and corporate chains dominate the retail landscape. Still, the mom-and-pop concept endures and has plenty of supporters committed to shopping at independent stores.
What is a mom-and-pop shop?
A mom-and-pop shop typically refers to a small, independent store or company. Taken literally, the "mom and pop" implies that it's a family-run or family-owned business, but it doesn't have to be. The phrase is often used to draw a distinction between independent stores and corporate-owned chains or franchises.
A mom-and-pop store also tends to be less technologically forward than a chain. For example, a mom-and-pop shop is less likely to have an app or an up-to-date website.
Some customers find independent stores like mom-and-pop shops charming or more interesting than chain stores, and they like doing business with someone in their community. They also believe you can get better service from a mom-and-pop store.
Often, you'll be dealing with the actual owner of the store -- something that would be impossible at a Target or a Starbucks. For regular customers, getting to know the owner of the business they patronize can also be a benefit.
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Challenges mom-and-pop shops are facing
As commerce has evolved, it's become harder for some mom-and-pop-type businesses to survive. These days, mom-and-pops have to compete with not only the Targets and the Walmarts of the world but also Amazon (AMZN +0.28%), whose wide selection and convenient delivery has put pressure on mom-and-pop shops.
Additionally, the proliferation of chain stores with deep pockets has pushed retail rents up, especially in some tonier corridors. That has made it more difficult for mom-and-pop stores to keep their leases and stay in business.
Similarly, downtowns in small towns and older cities have been hollowed out by the advent of malls and big-box stores on the outskirts of the community. As shopping traffic disappeared from traditional downtowns, many mom-and-pop shops that once occupied those areas closed.
Finally, consumer tastes may have changed, making it harder for mom-and-pop stores to maintain their business. Younger consumers may be more used to shopping at chain stores or more comfortable with e-commerce. Some mom-and-pop shops have also sold to chains, another way their numbers are depleting.
What's an example of a mom-and-pop shop?
One common type of mom-and-pop shop is the local hardware store. The hardware store is well suited to a mom-and-pop-type business because it sells products people often need on short notice.
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