Adaptation: Small retailers shift plans as online sales grow

NEW YORK (AP) — When shoppers walk into JAM Paper, they can choose from hundreds of holiday bows, rolls of wrapping paper and gift bags, in addition to thousands of everyday stationery items.

JAM Paper now gets so much of its revenue online that the company has scaled back from five stores to a single Manhattan location, owner Andrew Jacobs says.

Online and mail order sales nationwide rose 11 percent in October from a year earlier, compared with less than 2 percent growth in overall retail sales, the latest Commerce Department figures show.

There's room for both types of retailing, but the increasing competition means store owners must be able to meet customers' demands for the right merchandise, convenience, good service and an enjoyable experience whether it's in a store or on a website, says Bob Phibbs, CEO of The Retail Doctor, a consulting company based in Coxsackie, New York.

[...] customers of M.S. Rau Antiques are also willing to spend even millions of dollars on an antique or artwork they see only online because they're able to view multiple photos of an item from different angles and zoom in to examine it closely, owner Bill Rau says.

Stores where sales associates are friendly and take time to explain the merchandise can appeal even to customers who buy online because it's cheaper and/or more convenient, Clarke says.