Wednesday, August 19th, 2009
The media is quick to point out the dismal sales performance of numerous retail chains. Reports of significant decreases in comp sales are reported daily and full economic recovery is clearly tied to a resurgence of retail sales. While, the end of the recession may be near, retail sales will lag far behind a recovery. Why? There are too many consumers with too much debt, high unemployment, and homes under water to consider shopping for anything other than necessities. With consumer expenditures accounting for almost 70% of all economic activity and without a confident consumer, retail sales are going to continue in their depressed state, even as other signs of a recovery appear to be positive.
(more…)
Tags: consumer, consumer spending, economy, Real Estate, recession, Retail
Posted in Retail | No Comments »
Tuesday, July 7th, 2009
Starbucks Experience
In order to differentiate itself from McDonalds and Dunkin Donuts, “The Starbucks experience will now include the whir of the grinder and the smell of the aroma all day”, according to new written procedures for the 7000 units of the U.S. chain. According to the Wall Street Journal, Starbucks Coffee, “will now grind beans each time a new pot is brewed”. Seems like telling the baker to vent his fresh baked goods into the shop than out the back. But, something does not smell right when the most basic of assumptions must be converted into a manual. Sounds more like a statement in a failure of a corporate culture than a lesson in process management?
Best Buy
Facing a number of challenges including new competition, Best Buy reported a 15% drop in earnings for the first fiscal quarter of 2009. While the company is projecting cautious numbers for the balance of the year, officials are upbeat with recent increases in market share and increases in margins. After the closure of Circuit City, the firm’ overall market share increased to 21% of all consumer electronics, about 2% higher than 2008, reflecting gains in a computer notebooks, flat panel televisions and mobile phones. Likewise, the company’s gross margins improved from 23.7% a year ago to 25.3% in 2009. However, new competition from Wal-Mart, Amazon and regional players such as HHGregg have also taken market share away from Best Buy. One other challenge is the lack of consumer stimulus checks for 2009 to match those given out in 2008 unless Congress caves into to fund another rounds of consumer confidence for 2009.
(more…)
Tags: Retail, Retail Changes, shifting retail trends
Posted in Retail | 1 Comment »
Monday, June 22nd, 2009
The remnants of the industrial economy often surround the downtowns of major cities and form a large part of the fabric of what many would consider to be insignificant neighborhoods. These combined semi-industrial and residential zones typically form barriers between first ring gentrified neighborhoods and the city core, producing in-between waste lands, lost economies and failed communities. Ironically, while the focus often is directed to the showcase block of the downtown and hip new restaurants in the historic suburban neighborhood, it is the in between zone that actually has the most potential for true economic development.
In recent years many of these quasi industrial and residential zones have been absorbed by hospital and university expansions as well as new arenas, stadiums, exposition centers, and the next half baked version of No Dough. However, seldom are these industrial zones re-energized with significant investments in cultural facilities which are more typically reserved for the showcase locations of the downtown. One of several major exceptions is the Frank Gerry designed Guggenheim Museum located in an aging industrial district in Bilbao Spain. It is here that a new model of urban gentrification can be recognized where art becomes the engine of the urban renaissance. This model involves the use of public art and cultural facilities as a promoter of community regeneration. In particular, unpopular and stigmatized urban neighborhoods can now be revitalized more than ever in the current economy when underutilized land and aging and often functionally obsolete buildings are reclaimed.
(more…)
Tags: art, Culture, Real Estate Development, Retail, urban gentrification, urban renaissance
Posted in Retail | 1 Comment »
Wednesday, June 17th, 2009
Contemporary film often reflects the sentiments of its audience and initiates varied emotions that are generated well beyond the subject matter of the movie itself. In this regard, the music, location, and lighting can serve as a window into a deeper set of emotions and yearnings. This is for the simple reason that images and sounds link our consciousness with the unconscious to bring back memories of the past that ultimately reinforce the thoughts and feelings about the present.
In the movie You’ve Got Mail, Meg Ryan plays the role of Kathleen Kelly, an owner of a children’s bookstore in New York. It is a quaint intimate and well stocked independent and profitable shop that is a clear extension of her own sensibilities, perhaps allowing Ms. Kelly a needed connection to a lost childhood. But, life was good for Ms. Kelly’s and her devoted patrons until Foxbooks, mega-big-box-store, announced plans to move next door, seemingly to quickly serve the role of category killer.
Hugh Grant, in the 1999 film Noting Hill, played the role of William Thacker who also owned and operated another independent book store in a vibrant London neighborhood, known for its antique shops, small cafes and one of a kind specialty stores. Perhaps the shop was a frivolous commercial experiment with a recent inheritance or a deliberate move to a more pragmatic phase of life after a recent divorce, but it served a vital role in the neighborhood as a place of socialization and community connection. In real life, Notting Hill is an area in West London, close to the north-western corner of Hyde Park, in the Royal Borough of Kensington and Chelsea. It is a multinational district, once considered as a slum, now known as a creative community and home of the annual Notting Hill Carnival and the Portobello Road Market.
(more…)
Tags: death of shops, little shop, Retail, retail in movies, shifting retail trends
Posted in Retail | No Comments »
Thursday, June 11th, 2009
End of the Urban Mall
National retail chains can hardly lead a re-imaging of the city, any more than bars and clubs, and especially not hotels with their ever expanding demand for publicly supported convention centers, stadiums and arenas to fill their rooms. Likewise, chain stores occupying the latest version of an urban mall, once considered to be the panacea of an up and coming city, are now so risk adverse that they have long lost any real interest in downtown locations other than a handful of the most vibrant cities.
(more…)
Tags: community, consumers, malls, Retail, shopping, shops, suburban malls, town centers, urban malls
Posted in Retail | 1 Comment »
Wednesday, May 13th, 2009
Scratchies aren’t characters from The Simpsons. They’re what Aussies call scratch-off lottery tickets, and they are just one of the 21st-century equivalents of the lipstick that Depression-era women bought to brighten their lives.
It’s not only lipstick that’s enjoying a sales boost; women are turning to all beauty products for affordable indulgences. This category is booming in India, with some having just discovered makeup. (Good girls weren’t supposed to use cosmetics.) Now that it’s become acceptable to wear it, they’re not letting it go just because of the recession.
Global consumers are also finding solace in other treats. Chocolate is raising endorphins from Seoul to São Paulo. Argentineans can’t get enough of alfajores, dulce de leche sandwich cookies. (more…)
Tags: chocolate, consumers, lingerie, recession, Retail, sales
Posted in Retail | No Comments »
Friday, April 17th, 2009
So I have received several emails stating that apparently Barbie is the new “it” girl in the fashion world. Here is some more information of la femme du jour.
Barbie turn 50, hits New York Fashion Week and then Paris!
At New York’s Fashion week Barbie invited fashion’s finest and the little ladies in their lives to a chic fashion show in celebration of her 50th Birthday. Though it seems she hasn’t aged at all, 50 designers created unique looks for the timeless icon. Calvin Klein, Michael Kors, Kenneth Cole, Marchesa, Diane von Furstenberg, Alexander Wang, Derek Lam, Badgley Mischka and Catherine Malandrino, many of whom have collaborated with Mattel on outfits in the past, were among those whose looks hit the runway on live bombshells. “I had a Barbie before I had a G.I. Joe,” noted Wang. Malandrino, who sat front row, was elated to see her flag dress hit the pink runway. “The flag is the ultimate dress for the most famous American icon,” she said. “Barbie is a glamour icon with an endless wardrobe, a dream house and lots of cute friends. What’s not to love?,” asked Peter Som.
(more…)
Tags: Barbie, fashion, Retail, shopping, toys
Posted in Retail | No Comments »
Friday, April 17th, 2009
The toymaker Mattel is facing dwindling sales in the U.S., as little girls no longer aspire to look like Barbie, an embodiment of perfection that no longer fits our national consciousness. The edgier and less perfect Bratz dolls have become a popular alternative, and they’ve taken away Barbie’s spotlight.
(more…)
Tags: Barbie, China, Retail, shopping, toys
Posted in Retail | 2 Comments »