The Sad State of Retail

What a world we live in today. Our houses are worth less, our gasoline is worth more and our shopping desire is worth...well, let's just say it's diminished. I headed over to the neighborhood Linens 'n Things this week (admittedly to check out the store-closing sales--still at only 10 to 20 percent off, if you're curious) and came across a sad state. Yellow and red signs dominating the interior, announcing to customers the end of all that was linen or thing.

However, it wasn't the sales that piqued my interest in the store--it was my experience at the check-out counter. After purchasing a new oven mitt at 10 percent off (I had an incident with my hand and a too-hot burner the night before), I asked the sole store associate behind the counter when the store would be closing for good. She looked up with a completely blank stare and said, "I have no idea. They don't tell us anything." Having heard this depleted response, a female shopper behind me said, "You know, the Linens 'n Things at The Forum is already up to 20 percent off store-wide. You might want to check there." She went on to tell me about a massage chair she bought at The Sharper Image's store closing sale a few months ago for upwards of 60 percent off.

While the bargain hunter's commentary was appreciated, I have to say--what a sad state of retail we're in today. I mentioned to the woman that I write for a retail magazine and named off a number of other retailers recently calling it quits and closing all their stores (Shoe Pavilion and Mervyn's to name a few). Her reply? "Too bad none of them are around here. Probably some good sales."

While not all value-driven consumers are Chapter 11 store-hopping like the example here, the bargain hunter within all of us understands where this woman was coming from. Clip a coupon, hit a sale, save some money. As long as we're still shopping, retail will prevail.

--Alison Embrey Medina

Comments

[Ryan Braunstein]

Today vs Tomorrow: How many of us have a drawer or box somewhere in our home full of perfectly functional electronics that we no longer use. How many transformers, car chargers, docking stations, wireless gizmos ranging from old cell phones to wireless mice, etc etc do we all have? Do you own a single pocket-sized electronic device (bought in the last two decades) that won’t require outright replacement after just a few years use? And how much longer did keep your first Palm Pilot last than your last Blackberry / Treo / iPhone? People have come to expect a very short lifespan for many of the today’s goods because we’ve all taken for granted how relatively cheap they are. Many of us often choose to replace products long before they have past their useful lifespan, especially when something malfunctions (rather than repair). Do you honestly expect your cell phone to last at least 3 years, or that if it were to stop functioning after just the 1st year, would you have it repaired rather than replaced? Can anyone remember the last time they took a TV to be repaired? The expectation of product longevity has us replacing our coffee-makers, TVs, cameras, cell phones and even computers every 3 years, or less! In a declining economy, consumers may soon realize the cost of such a replacement cycle is no longer affordable. The ability to upgrade / enhance and even repair a product that has been designed for a longer lifespan will be a valuable selling point for the budget-conscious buyer looking to stretch their dollar in tomorrow’s economy.

My conclusion is the disposable universe of consumer goods, one in which people buy more and consequently throw away a lot of products before their usable life has expired, is going to disappear. Products that you buy to keep may well turn out to benefit from these dramatically transformed conditions. Cost efficient design and establishing a reputation for durability and reliability will be the rule. And while this may result in fewer products being brought to market, designers and engineers should be very busy developing extended life-cycle products to meet the ‘economy of tomorrow’s efficiency requirements.

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