4 ms·

What in the World Is Causing the Retail Meltdown of 2017?

8 points by Doches 10y ago

milesvp 10y ago
I think one major factor that the article didn't mention, is that Malls are overpriced and lame. There's a mall I grew up with in Seattle, it was getting long in the tooth about 16 years ago, then it had a pretty major overhaul, and was revitalized. Now it's starting to get long in the tooth again. All I know, is that when I go to any mall in my area, I tend to feel a little gross. Not gross like I feel in a wallmart, but gross enough not to want to be there. The lighting is wrong. The colors are wrong. The space feels constricting. The general energy feels wrong too. The end result is that the experience is draining. I strongly suspect that another part of the problem is that the mall managers do a poor job managing the intangibles, and end up doing things to maximize short term profits. I've always been told to avoid mall retail space as a small player since malls will tend to turn the screws every year, until you're guaranteed to make no profit. And I think this strategy works until it doesn't. It makes sense to have high rents since it helps ensure that the highest quality tenants use a scarce resource (best example of this was the Eve economist raising rents in key locations to prop up the entire Eve economy), but I think it effects the overall diversity that may be necessary to foster in a place like a mall.
- Nadya 10y ago
  In addition to everything else you said, one small addendum to make. >I think one major factor that the article didn't mention, is that Malls are overpriced Even at "fair prices" - outside of clothing... why would I go to a mall instead of order online? (FWIW, I order my clothes online too since my size hasn't changed in years.) I have zero reason to go to a crowded mall, deal with people window shopping/being slow in front of me, etc. when I can buy my things online and get them in a few days.
  - itchyouch 10y ago
    Fitment of clothing is a pretty big factor for a large portion of the population. Different company sizes fit differently. Style, color and other subtleties are also difficult to tangibly reason about without checking out clothing in person. These things also matter a lot to a significant portion of the population. There is also an intrinsic instant gratification of purchasing something and taking it home immediately.
    - Nadya 10y ago
      Which is why I specifically omitted buying clothing from my reasons to go to the mall. I'm aware that I'm the minority who just doesn't care enough as long as the shirt fits and isn't itchy. Most people I know of who are going to the mall are going to buy clothes - because there are a number of clothing retailers in relatively close proximity and they can try things on at each place. >There is also an intrinsic instant gratification of purchasing something and taking it home immediately. I think not having this is great to help avoid impulse buying. I have no gratification in making purchases and rather dislike spending money at all. That buying something doesn't "feel good" means I make less purchases than my roommate who loves buying cute stationary and such. She doesn't actually use any of the stationary - but buying it makes her happy.

8 points by Doches 10y ago

I think one major factor that the article didn't mention, is that Malls are overpriced and lame. There's a mall I grew up with in Seattle, it was getting long in the tooth about 16 years ago, then it had a pretty major overhaul, and was revitalized. Now it's starting to get long in the tooth again. All I know, is that when I go to any mall in my area, I tend to feel a little gross. Not gross like I feel in a wallmart, but gross enough not to want to be there. The lighting is wrong. The colors are wrong. The space feels constricting. The general energy feels wrong too. The end result is that the experience is draining. I strongly suspect that another part of the problem is that the mall managers do a poor job managing the intangibles, and end up doing things to maximize short term profits. I've always been told to avoid mall retail space as a small player since malls will tend to turn the screws every year, until you're guaranteed to make no profit. And I think this strategy works until it doesn't. It makes sense to have high rents since it helps ensure that the highest quality tenants use a scarce resource (best example of this was the Eve economist raising rents in key locations to prop up the entire Eve economy), but I think it effects the overall diversity that may be necessary to foster in a place like a mall.

Nadya 10y ago
In addition to everything else you said, one small addendum to make. >I think one major factor that the article didn't mention, is that Malls are overpriced Even at "fair prices" - outside of clothing... why would I go to a mall instead of order online? (FWIW, I order my clothes online too since my size hasn't changed in years.) I have zero reason to go to a crowded mall, deal with people window shopping/being slow in front of me, etc. when I can buy my things online and get them in a few days.
- itchyouch 10y ago
  Fitment of clothing is a pretty big factor for a large portion of the population. Different company sizes fit differently. Style, color and other subtleties are also difficult to tangibly reason about without checking out clothing in person. These things also matter a lot to a significant portion of the population. There is also an intrinsic instant gratification of purchasing something and taking it home immediately.
  - Nadya 10y ago
    Which is why I specifically omitted buying clothing from my reasons to go to the mall. I'm aware that I'm the minority who just doesn't care enough as long as the shirt fits and isn't itchy. Most people I know of who are going to the mall are going to buy clothes - because there are a number of clothing retailers in relatively close proximity and they can try things on at each place. >There is also an intrinsic instant gratification of purchasing something and taking it home immediately. I think not having this is great to help avoid impulse buying. I have no gratification in making purchases and rather dislike spending money at all. That buying something doesn't "feel good" means I make less purchases than my roommate who loves buying cute stationary and such. She doesn't actually use any of the stationary - but buying it makes her happy.