Saturday, March 25, 2017
will retail survive the next recession?
The simple answer is "yes." However, the Amazonization of the shopping experience is separating winners from losers in a permanent way. Places that can generate foot traffic and create memorable experiences will always do well--until they go out of style or are mismanaged into oblivion. Cheap stuff will be easier to buy online---as well as unusual items that can't justify paying for rent in shopping districts.
On that subject, the shopping mall is in deep trouble. Towers of ilium predicts attrition rates of over 30% over the next ten years.
Incidentally, this is a picture of one of the dining areas in Eataly, Boston. It is a highly deceptive image because it only looks like this at 4 am. During business hours it's mobbed with mobs of people who have money. Nice work, Mario.