It’s not just the financial community that’s scrutinizing the 15,000-store Starbucks coffee shop chain, it’s also the neighborhood communities. After all, it’s the local residents and workers who frequent Starbucks. And according to this article in BusinessWeek, they’re frequenting their local Starbucks less frequently.

It’s no surprise to me. There seems to be no end to the Starbucks alternatives popping up everywhere. They look cooler, offer tempting menu choices, often provide free Wi-Fi access and have lower prices. As the article points out, the Starbucks experience has been diluted by the chain’s focus on merchandising. It’s time to get back to the “luxury coffee experience,” the analysts claim.

I find it interesting that good merchandising has been overshadowed by a cup of coffee. But that’s what has the financial folks so riveted to Starbucks’ upcoming revamp in March. One expert suggests they open a chain of microstores that focus on the basics: just world-class coffee drinks, with no mugs or chocolate-coated graham crackers to be found.

As someone devoted to merchandising, I’ll be interested to see what transpires. Seems like Starbucks’ quest for market share has left it groping for repeat customers. I guess they’re just tired of the same old grind.

Here’s an article about a former goldsmith in Ohio who turned his real passion — woodworking — into a retail opportunity. Eric Hyde was between jobs so he found a big workshop where he could set up all his lathes, saws and power tools and devote more time to his longtime hobby. But he soon realized that others who share his love of making objects out of wood were willing to pay to use those tools. And so A WoodWorker’s Place was born.

It’s grown so big that Hyde now has five employees, each specializing in different types of woodworking. One side of the place is devoted to retailing, including tools and wood for working. There’s also a design library and a computer with CAD software, free for customers to use. Woodworking classes are held there, too.

This is a great example for anyone who wants to earn a living doing what they like best. Unfortunately, some people in retail don’t stop to think what they’d really like to be selling. It’s a good idea to pause and reflect on your life goals occasionally. Now that you’re experienced in retailing clothes, why not take a fling at merchandising what you are passionate about, like diving gear? If diving is what you’d rather be doing, why not make money at it?

Look what Hyde did: He went from goldsmith to making his gold with wood. If he can do it, woodn’t you like to try?

Even though few in the federal government are still willing to admit it, the "r" word seems to be upon us. That stands for "recession," of course, with a lowercase "r." And it very likely will become a capital "R" throughout North America in the coming months. Those of us in the other "R" world – retail – had better be prepared when it arrives.

How do you go about it? First of all, there’s tons of free advice online. Microsoft says that "detecting changes and making adjustments are key to survival" and "raw data from the POS system is a critical component of real-time analysis." The software giant will be glad to help you do that and more with their Retail Management System.

A much smaller retailer in Edmonton, Alberta, Canada, however, has a rosier view of what’s ahead. Chocolatier Kerstin Roos isn’t going to let a big or little "r" stop her from opening her first store soon. "I wouldn’t stop my dream from happening just because of the potential fear that there might be some problems this year," she says.

Entrepreneur Larry Wasser of the University of Toronto’s Rotman School of Management agrees with Ross. He says any year is a good year to start a business. If there is a recession, it can actually be advantageous for the new business owner because there’s less competition out there.

Leo Donlevy of the University of Calgary’s Haskayne School of Business believes the type of business or service you offer is critical. "I’d be looking for something that is more of a necessity kind of thing, or something that solves a major pain for people," he says.

“Carving out a niche for you store isn’t enough anymore. Your niche must be defined by a lifestyle, an attitude, a passion.”

Inc.com columnist Ted Hurlbut echoes Donlevy with more great advice for small retailers: Carving out a niche for you store isn’t enough anymore. Your niche "must be defined by a lifestyle, an attitude, a passion. The niche must now be defined, and the retailer must build its name to represent a clearly identified emotional appeal to its target customer…the Internet is a great provider of product information, but it can never replicate the value of a customer’s interaction with a highly knowledgeable salesperson."

In these tough times, your store must stand apart from the rest. Your salespeople must know everything about your products or services, and must know how to treat customers like royalty without being pushy. Your store layout must draw them in and keep them in a buying mood.

It’s fair to say that if you are a small retailer, many of your customers aren’t buying on price alone. They’re looking for a shopping experience that makes them return again and again. That’s what recessions do – they return again and again, sort of like tornadoes. If you’ve made your business recession-proof by having all the tools in place to weather the storm, think of how well you’ll do when the storm passes.

Try to keep a positive attitude despite the economy. Visit competitors who seem to be doing well. See what you can find out about them online. Take the plunge and buy market research from top-rated firms. It can be a real eye-opener, with up-to-date information on customer buying habits, how to reach customers, market trends and much more.

The Small Business Administration has plenty of free advice on how to stay afloat. Visit their site for success stories, tips and local resources.

We can’t really wish you the best of luck in this recession and the coming Recession. You are going to have to make you own luck – good or bad. And if you’re a survivor, you’ll proudly be a Retailer with a capital “you-know-what.”

If you’re a retailer with a brick-and-mortar store, you’re still in the majority. But maybe not for long. A new study by the Direct Marketing Association found that 41% of respondents don’t have a physical store, and their number is growing. That leaves 59% with a retail street presence. If you want to stay on the street, you better act now.

The study points out that retailers who want to be successful have to be jacks of all retailing trades. They have to bring together all facets of retail, including “consistent brand message, timing, creativity of promotions, loyalty programs and fulfillment.” To that I would add knowledge of online retailing. Because without it, you’re going to face pretty stiff competition from those who have it.

While the DMA obviously would like to see more of us using direct mail, the study notes that websites are the most consistently used direct marketing channel, followed by email and direct mail; mobile is the direct marketing channel retailers are least likely to use; and 66 percent of the respondents gather customer information from direct mail, while 65 percent gather it from the Internet. So, it’s pretty obvious, knowing how to use online will be a differentiator between brick-and-mortar and virtual retailers for the long term.

Last year, the report says, physical stores and retail websites reported the highest revenues of any retail sources. That’s good news for street and web retailers. Make sure you have your feet firmly planted in both worlds. It’s the best way to get customers through your front door—or your portal.