The Atlantic has an article about “the retail meltdown of 2017”.
There have been nine retail bankruptcies in 2017—as many as all of 2016. J.C. Penney, RadioShack, Macy’s, and Sears have each announced more than 100 store closures. Sports Authority has liquidated, and Payless has filed for bankruptcy. Last week, several apparel companies’ stocks hit new multi-year lows, including Lululemon, Urban Outfitters, and American Eagle, and Ralph Lauren announced that it is closing its flagship Polo store on Fifth Avenue, one of several brands to abandon that iconic thoroughfare…
So, what the heck is going on? The reality is that overall retail spending continues to grow steadily, if a little meagerly. But several trends—including the rise of e-commerce, the over-supply of malls, and the surprising effects of a restaurant renaissance—have conspired to change the face of American shopping.
A lot of people like the car-dependent suburbs because they are perceived to be quiet, safe, and have good public education. But do people actually like sitting in traffic or have they seen that as a necessary price to pay. I like how the Place Shakers blog talks about this:
So what was the motivation [for the rise of auto-dependent retail]? I’d suggest it was (and still is, really) a desire for the easiest possible access to the stuff we want at the time — a desire so strong, it seems to me, that we began structuring our entire built environment around its fulfillment…
That’s why we built bigger arterials which fed bigger chain stores with more of the items we wanted to get our hands on. And why we built malls, where the variety of available goods seemed to increase exponentially. And it’s also why we established hefty parking minimums. Because you’re not effectively delivering on the promise of easy access to goods if you can pave the way to a warehouse full of stuff but leave no space to park within a few feet of the door. And parking within a few feet of the door is a fundamental part of the need being fulfilled.
But what happens when times and technologies change, and new ways of addressing our needs emerge? Suddenly we’re afforded new opportunities to prioritize how we spend our time and money.
In other words, we can get the stuff we want without spending so much time sitting in our cars, and we have figured out that there are other, better ways to be spending that time. I think something very similar is playing out with the trend of a lot of people working from home, at least on Fridays. By saving that commuting time to and from the office, your free up hours of your day for sleep, family, leisure, or extra productivity.