Archive for February 23, 2009

Wal-Mart, the Independent Retailers, and the Recession

Two interesting phenomena seem to be happening in this downturn: Wal-Mart is thriving but so is shopping local.  On the latter: Richard Layman from Urban Places and Spaces Blog notes that he has been:

somewhat more conscious and [shopping locally] myself, such as buying toys as gifts from Sullivan’s Toy Store on Wisconsin Avenue NW, or baby-related stuff for friends, at Now & Then, a gift shop in Takoma Park.

He refers to a Seattle Times article on the subject.  In some neighbourhoods the local stores are doing well, while elsewhere the independents are closing.

Local shopkeepers say they’re also seeing people … who are financially stable and want to help. “People really want to support their local stores, because if they don’t, we’ll all go away,” said Muriel Monteiro, owner of the Lola Pop clothing store on North 35th Street in Fremont….

In Seattle’s Ballard neighborhood, shopkeeper Craig Keister recently hung up signs saying “Uncle.” His Mandrakes Antiques store will close at the end of this month after 20 years in business. Other recent Ballard closures include Annabelle’s Consignment and All the King’s Flags.

So, we have Wal-Mart thriving, some independents thriving, and some going bust.  Here’s my theory.  Shoppers are indeed thinking critically about what they are buying, and where.  Presumably this leads some to Wal-Mart and other big box discounters while others head to local stores.

What we also need to consider is that it may be the same people, in many cases, supporting both.   They buy some more generic products at the discounter, leaving extra disposable income to support the local stores.

The New York Magazine also offers a theory about why certain independents will survive: they will improve customer service.

Service, an all-but-forgotten notion in the boom years, is now an essential means of survival. The name of the game is regulars—creating new ones and holding on to old ones. Restaurateurs are plying customers with amuse-bouches, managers are visiting and revisiting tables. Stores are offering free gift wrapping and delivery. Shopkeepers who once treated customers with haughty indifference now practically sprint to the door to greet them. Henri Bendel recently gave away brownies.

Best cities to ride out the recession

A few unemployed readers have e-mailed me asking where their families should move to ride out the recession.  Finally, I found a couple approaches to consider if you’re going to relocate during these challenging times.

First, for Canadians, the Conference Board’s director of city forecasting, Mario LeFebvre, says that Winnipeg, Saskatoon and Regina will outperform other Canadian cities over 2009 and 2010 in terms of economic growth.  As he summarizes:

These three economies have diversified significantly over the past 20 years and while agriculture still matters, it plays much less of a role in the overall economic picture.  …

The economic success of these cities has turned them into a magnet for people over the past two years. This is such a huge change. Historically, no matter how well the economies of Winnipeg, Regina and Saskatoon were doing, these cities were losing people to other provinces. Yet over the past few years, these cities have been attracting people from other provinces. This is a change in trend which bodes well for the future economic prosperity of these cities, as stronger population growth is guaranteed to lift demand for new homes and the number of shoppers inside these cities’ shopping malls.

For Americans, consider the Business Journal’s list of the best metros for small businesses and entrepreneurs (via creativeclass.com).  These are Raleigh, Charlotte, Seattle and Austin according to the study.  Even if you personally make a lousy entrepreneur, you might have useful skills to work for one.  Plus, cities with a wide variety of smaller industries and businesses can often avoid the dramatic downturn that happens when one dominant employer or industry is forced to downsize.

Any other suggestions out there?

Trailer parks

Apparently trailer parks could become an affordable yet highly livable housing options.

They do offer some advantages over apartment block living, but providing similar density levels:

  • fresh air flow with windows on all walls;
  • accessibility for those who struggle with stairs;
  • expandability (you can add up as well as out);
  • options to own or rent;
  • with good landscaping the possibility of living amongst greenery

This comes from a summary of a forthcoming book by Bill Morrish — which opened my eyes to the possibilities.  At first blush, the idea of trailer parks as solutions to increase density in inner-urban cores sounds inappropriate.  But, upon reading the links above, I’m now more intrigued.

Edmonton: Where Oil and Sustainability Meet?

Edmonton is an intriguing place.  It sits next to the world’s 2nd largest oil reserves and the economy is dominated directly and indirectly by the oil extraction industry.  Yet, it has also been ranked the most sustainable large city in Canada by Corporate Knights Magazine:

With the lowest unemployment rate of all cities [below 4% ] and the second-lowest unemployment rate of immigrants, Edmonton wants to be an “innovation centre for value-added and green technologies and products,” and is measuring progress by the percentage of green collar jobs created. Edmonton is also the only city in our consideration set to have inclining block pricing on water to encourage conservation.

This may be true, but I wonder if the sustainability ranking is premature.  Having just returned from there, Edmonton was definitely a spread out city that requires a car, or a truck — even a rig rocket.

That said, it’s a city where the mayor and many residents envision a lower-carbon future:  A new light rail transit system is under construction; the downtown is booming with new funky condos;  post-secondary education opportunities are abundant; and city hall has a plan to promote higher density housing and more infill rather than greenfill development.  Solar and wind energy research is also emerging as the city seeks to diversify from an oil town into an energy town.

What’s ironic, is that 10 or 15 years from now, Edmonton — where much of North America’s oil may come from — could actually become the model city for a more sustainable, even post-oil era.  Even if the plan struggles somewht, it remains  impressive is that this city of barely 1 million, centred around the oil industry,  has a plan to get there.