“Traditionally, men’s path to purchase has been more linear than women’s, adopting a more utilitarian approach, considering all options rationally and weighing up alternatives based on price and quality. As men become more concerned about how they look, what they wear and products they use, their decision-making is beginning to imitate women’s.” ~ Ildiko Szalai, senior analyst of Beauty and Personal Care, Euromonitor, quoted in The Wall Street Journal.
“On the whole, the problem with new books is that there’s a list price set by the publisher and a discount price that’s also set by the publisher. So, as a new bookseller, you have no control over what the book sells for or what you pay for it. With used books, if you’re smart, you find ways to get them cheap, and you decide what you price them at.”
“As a general rule, on any book, a used bookseller is probably making twice as much profit as a new bookseller. And that’s the difference between making it and not making it, because the profit margins on new books are razor-thin. At a used bookstore, no one is getting rich, but you can make enough to stay alive.” – Benjamin Friedman, co-founder, Topos Bookstore Café, as quoted by The Awl.
Tech Insider: Garden Santa Fe, a 7-story-deep underground shopping mall in Mexico City, is a peculiar hybrid of basic infrastructure needs and a re-envisioning of contemporary retail. At a time when urban real estate is a precious commodity, going underground might just be the future of shopping … The Garden Santa Fe Mall has … circular courtyards, complete with live trees at the bottom and second level of the mall, providing a release from what would otherwise be a claustrophobic environment.”
“The presence of three full story glass atriums essentially brings the outdoors to the underground … The entire building is buried 7 stories deep, making heating and cooling much more energy efficient. Overall, the mall uses 60% of the energy of a comparable retail space. An extensive rain collection system and onsite grey water treatment and water reuse system make a similar impact in water consumption.”
The Washington Post: “While for decades it has been part of the Ikea experience to get your new couch with a side of Swedish meatballs, Ikea’s U.S. president Lars Petersson said in a recent interview that ‘Ikea food is becoming a core business’ for the privately-held, Sweden-based company.”
“That’s why all 41 of its stateside stores are getting restaurant makeover in the next several months … the goal is to create three zones for different types of diners. One area will be outfitted with high tables and barstools suited for scarfing down a quick bite. A second will aim to be family-friendly, with activities for kids and tables for their parents to dine nearby. The third area they call ‘Fika,’ which is a Swedish word for a coffee break that involves socializing.”
“It makes sense that Ikea is investing in its food business at this particular moment: In 2015, the Commerce Department reported that restaurants saw 8.1 percent sales growth, even as the broader retail industry saw an increase of just 2.1 percent and as home furnishings stores posted a 5.8 percent increase. There’s clearly momentum in the dining category, and perhaps a fresher look and menu can help Ikea get a piece of that.”
“For many companies, competing both online and at the mall can mean trading fat profit margins for more customers—at least for now,” reports The Wall Street Journal. “Fashion retailer DSW Inc. has given shoppers the option of placing online orders for out-of-stock items without leaving its stores. And, the chain is both fulfilling online orders and accepting returns at its growing number of locations.”
“The company is betting those efforts will pay off by increasing customer loyalty even though they aren’t adding to profits in the near term, said Roger Rawlins, who oversaw DSW’s omnichannel strategy before recently becoming CEO. He said customers who buy DSW products through multiple channels spend two or three times as much as those who shop exclusively in its stores or online only.”
“The strategy ‘ultimately allows you to grab additional market share, and then as we learn through using all these capabilities, we hopefully should be tweaking to be able to generate incremental profitability,’ Mr. Rawlins said.”
The Wall Street Journal: “More than nine of 10 shoppers said they considered ‘same day,’ ‘next day’ and ‘two day’ delivery to be ‘fast,’ according to consulting firm Deloitte’s 2015 holiday survey of some 4,000 shoppers. At three to four days, only 63% called it ‘fast,’ and just 18% of shoppers considered five to seven days ‘fast’.”
“And customers for the most part are no longer willing to pay extra for expedited delivery. Shoppers on average said they would pay at most just $5.10 for same-day service, in the Deloitte survey. A quarter of shoppers said they wouldn’t expect to pay anything at all.”
However, absorbing the shipping may be worth it to some online retailers because it can reduce the return rate: “When you go to a store, you have that wonderful delight of carrying the bag down the street,” says David Maddocks, chief marketing officer of Cole Haan. “Online, after you click, you have to wait. And during that time you can fall out of love.”
Chinese dissident artist Ai Weiwei has turned the Bon Marché department store in Paris into an art gallery, reports The New York Times. “Anyone needing more evidence that the distinctions between public and private, high and low, art and commerce, and actual versus Internet celebrity have now imploded beyond recognition need look no further than this example of a populist Chinese dissident artist exhibiting in a luxury department store in one of the world’s fashion capitals.”
“Why the Bon Marché? Mr. Ai said that no French museums had contacted him about organizing a show … The Bon Marché first contacted the artist in late 2014, when he was still prevented from leaving China, said Frédéric Bodenes, the store’s artistic director. Mr. Bodenes said the store was not worried about souring ties with China.”
“We’re about poetry, beauty, dreams. We’re here to entrance our customers, and there’s no politics behind it,” Mr. Bodenes said. “Art is a value-added thing that we give our clients.”
The Guardian: The appetite of western consumers for home furnishings has reached its peak – according to Ikea, the world’s largest furniture retailer. “We talk about peak oil. I’d say we’ve hit peak red meat, peak sugar, peak stuff … peak home furnishings,” Steve Howard (of Ikea) said at a Guardian Sustainable Business debate. He said the new state of affairs could be called “peak curtains.”
But Howard said his comments did not contradict Ikea’s target of almost doubling sales by 2020, and that changes in consumption were an opportunity for companies to rethink the way they did business. Ikea was trying to help customers live in a more environmentally friendly way, he added. “We will be increasingly building a circular Ikea where you can repair and recycle products,” Howard said.
Mental Floss: “Nineteen behind-the-scenes secrets of IKEA employees.” Among the gems: “The winding walkway is known lovingly among employees as the Long Natural Path or the Long Natural Way. According to a 2011 New Yorker article by Lauren Collins, the pathway is supposed to curve every 50 feet to prevent shoppers from getting bored.”
“There are multiple quick routes through the store, both for safety reasons and stocking reasons, and they’re open to the public. But they’re not advertised, so you’ll need a keen eye for secret passageways … If you’re the passive-aggressive type of shopper, you’re bound to be disappointed at IKEA. Employees are given specific instructions to let the customers come to them if they need assistance.”
“Lovers’ quarrels are so common in the store that at least one psychologist told the Wall Street Journal she has her bickering clients construct the Nornäs coffee table as a relationship-building exercise.”