I was posed the question: “Should I open a shop? After all, margins are being squeezed as economies are tight and as internet shopping becomes increasingly popular.”

In Britain, three mega chains – Jessops (cameras), HMV (CDs) and Blockbuster (DVDs) – have folded in recent weeks. Parts of some inner city retail centres look like ghost towns. Sky TV has been running an item on how Obama’s America has still to recover from the credit crisis. In my country, “a quarter of Israel’s clothing and shoe stores are in danger of going out of business.”

So why should anybody want to enter the retail business, this apparent jungle of doom? How can you do battle with a virtual enemy, the internet, which allows people to browse with a tasty mug of coffee in their hands and to find the best price from a source that does not even have a shop? To start up or not?

I read a great article on the subject, mainly referring to the chronic problem in the UK. As Graham Ruddick observed: “….retailers have been adapting and investing to meet the demands of the modern consumer.”

There appears to be five key tips for turning your shop into a success in the current commercial climate:

1) If you develop an online presence, allow the customer the option to pick up the valuable booty. It will ensure greater communication and maybe even lead to an extra sale in passing.

2) Identify your threats and do not ignore their challenges. Steimatzky, Israel’s leading book seller for years, had a dominant position in the market. It nearly killed off the little shop. However, as if to be predicted, they did find new ways to help people buy books, which can easily be purchased over the web via Amazon. For example, there was rarely a corner to sit down and read a chapter in a store.

3) Know your customer. Provide a niche product. People are people and we all have needs that must be serviced. As HMV closes down, I know of several record shops that have sprouted  up in different countries. These are shops that have adapted with the times and thrive, despite lowish margins.

4) Partner up. There is no global law of commerce that says a shop front of 50 sq m has to be occupied by the same owner. Why not put two or three vendors under the same roof, offering tasters of a larger range, which would be available on-line or at larger outlet away from town centres?

5) Simply make your shop look attractive. Invest in appearance. Two years ago, the City of Jerusalem heavily subsidised shops in the heart of the city which modernised signs and shop fronts. The results have helped to make a difference in the atmosphere, encouraging more visitors.

As Ruddick observed: “With investment and the right strategy, therefore, it is still possible to thrive on the high street.”