The Future of Retail
Mar 15th, 2009 by NFiore
As recent events suggest, we are in the midst of potentially great changes in our economy. The financial crisis has proven to be a game changer - so far - and many econobloggers and pundits are claiming that we are undergoing necessary structural changes. Specifically, it has been suggested that the engine of capitalism - consumption - may never return to the extreme levels seen in past decades. If we accept this projection as true, it brings forth a variety of questions for all of the participants in a capitalist society (consumers). Designers of buildings and products, as well as all citizens concerned about the fiscal / ecological present and future, need to consider some important questions:
Is a contraction in consumption a bad thing?
Can capitalism exist where smaller and sustained consumption levels (the new model) replace ever-growing consumption levels (the old model)?
Will shrinking retailers resume their growth at the end of this downcycle?
Have we built too much retail space?
Have we made too many non-useful products?
These and many more questions came to mind while I read “Xanadu: Can This Mall Make It?” by Ali McConnon on Businessweek’s site. There is no small irony in the name (which is the REAL name, not the author’s clever title): Can’t help but think about poor Charles Foster Kane and his lonely monument to unrequited love…
Not to take away from your ideas.
I would really be interested to see how second hand and dollar stores are doing? My guess is that their revenue is probably going up.
Another business that continues to thrive is the self storage industry. Even in the midst of an economic downturn it is still holding its business and in some markets is growing.
What kind of revenue could be generated from selling the stuff we do not need and saving the $$ to store what we do not use?
Do you feel that we have trapped ourselves in the retail system that we have created or built?