Developers want to take shopping centers closer and closer to where the affluent, professional people live, he said. Lifestyle centers are a means to that end. Their location is convenient to consumers because you can drive right up to the shops and park the car.
The Woodbury Common Premium Outlets encompasses 220 outlet stores, including one of the few Chanel outlets in the world. The outlets are set up almost like a village, making for an enjoyable atmosphere.
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Are other companies doing this? Four researchers in Catalonia tried to answer the question with dummy computers that mimicked the web-browsing patterns of either “affluent” or “budget conscious” customers for a week. When the personae went “shopping,” they weren’t shown different prices for the same goods. They were shown different goods. The average price of the headphones suggested for the affluent personae was four times the price of those suggested for the budget-conscious personae. Another experiment demonstrated a more direct form of price Computers with addresses in greater Boston were shown lower prices than those in more-remote parts of Massachusetts on identical goods.
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What’s interesting is how other retailers are now beginning to adapt. To show me this, a Boomerang employee opened up the dashboard seen by the firm’s clients. Scrolling through a menu of premade algorithms, he selected a rule, “Beat Competitor by 10%,” for certain items meeting the following criteria:
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If the marketplace was a war between buyers and sellers, the 19th-century French sociologist Gabriel Tarde wrote, then price was a truce. And the practice of setting a fixed price for a good or a service—which took hold in the 1860s—meant, in effect, a cessation of the perpetual state of hostility known as haggling.
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Sticking with well-known stores, or attempting to find independent consumer reviews of their experiences; also ensuring that there is comprehensive contact information on the website before using the service, and noting if the retailer has enrolled in industry oversight programs such as a trust mark or a trust seal.
It won’t be for long. In early May, management gave the remaining tenants 60 to 90 days to close up shop. Tenants expect the property to be demolished. The wrecking ball will put the mall in good company around the nation. By 2022, analysts estimate that 1 out of every 4 malls in the U.S. could be out of business, victims of changing tastes, a widening wealth gap and the embrace of online shopping for everything from socks to swing sets.
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Some of the great mall die-off is what economists refer to as a market correction. “We are over-retailed,” says Ronald Friedman, a partner at Marcum LLP, which researches consumer trends. There is an estimated 26 sq. ft. of retail for every person in the U.S., compared with about 2.5 sq. ft. per capita in Europe. Roughly 60% of Macy’s stores slated to close are within 10 miles of another Macy’s.
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As Christmas approached in 2015, the price of pumpkin-pie spice went wild. It didn’t soar, as an economics textbook might suggest. Nor did it crash. It just started vibrating between two quantum states. Amazon’s price for a one-ounce jar was either $4.49 or $8.99, depending on when you looked. Nearly a year later, as Thanksgiving 2016 approached, the price again began whipsawing between two different points, this time $3.36 and $4.69.
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