tag:theconversation.com,2011:/us/topics/retail-shopping-62278/articlesRetail shopping – The Conversation2023-12-25T21:08:15Ztag:theconversation.com,2011:article/2195072023-12-25T21:08:15Z2023-12-25T21:08:15ZHow Boxing Day evolved from giving Christmas leftovers to servants to a retail frenzy<figure><img src="https://images.theconversation.com/files/566753/original/file-20231219-15-pl6vcr.jpg?ixlib=rb-1.1.0&rect=360%2C227%2C5572%2C3987&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/great-big-seasonal-boxing-day-sale-1845136369">Pro-stock Studio/Shutterstock</a></span></figcaption></figure><p>The Boxing Day sales are an essential part of Australia’s festive season.</p>
<p>Every year on December 26 news outlets invariably feature stories about excited shoppers queuing up at the major department stores hoping to score bargains and heavily discounted products. While such reports portray the day’s sales as a time-honoured tradition, they are only a recent ritual.</p>
<p>The <a href="https://www.abc.net.au/news/2020-12-26/history-of-boxing-day-servants-sales-and-saints/12864436">origins of Boxing Day</a> date back to the Middle Ages, when English masters gave their servants a day off after the Christmas celebrations. The servants would be given a box containing leftover food and treats to share with their families. In 1871 the day was formally recognised as a public holiday in the United Kingdom. Australian colonies later followed suit.</p>
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<p>In the 19th and the early 20th centuries, the Boxing Day holiday was largely a day of rest and entertainment. Community sporting events were often held – a tradition that continues in Australia with the Boxing Day Test in Melbourne and the Sydney to Hobart yacht race.</p>
<p>As Boxing Day was an official public holiday, major retailers like department stores were not permitted to trade. These stores only re-opened for business three to five days after Christmas. Retailers certainly advertised “post Christmas bargains”, but most used this period to prepare for the annual stocktake sales that began shortly after New Year’s Day.</p>
<h2>When the day became all about shopping</h2>
<p>A gradual shift occurred during the economic boom after the second world war.</p>
<p>As consumer expenditure increased, the competition between retailers intensified. Eager to get ahead of the pack, Myer was advertising its “<a href="http://nla.gov.au/nla.news-article243434457">pre-stocktaking sale</a>” in 1954. As others began their post-Christmas stocktake sales earlier, they became a key part of the retail annual cycle.</p>
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<p>By the 1980s retail trading hours were coming under pressure. Since the beginning of the 20th century, retail was confined to 9am-6pm on weekdays and 9am-midday on Saturdays. Changing work patterns meant many Australians were only able to do their shopping in a mad rush on Saturday mornings. Over the 1980s and 1990s, trading hours were progressively extended in each state.</p>
<p>The liberalisation of Victoria’s retail trading hours coincided with a further intensification of competition across the department store sector. <a href="https://www.afr.com/politics/confident-daimaru-opens-huge-store-19910910-k4kfb">Daimaru</a>, a Japanese department store, opened a branch in Melbourne in 1991. In its battle to steal market share from Myer and David Jones, Daimaru pioneered new initiatives, including 24-hour trading in the lead up to Christmas and trading on Boxing Day.</p>
<p>To promote its Boxing Day sale and generate a real buzz, Daimaru advertised a small number of enormously discounted products. These door buster sales worked. Crowds queued in the early hours of the morning to snare one of the bargains. As the doors opened, mayhem ensued as frenzied shoppers literally burst into the store.</p>
<h2>The pursuit of a bargain got a little too serious</h2>
<p>The appeal of the door buster sale took a hit in 1993 when one eager shopper lost the tips of her fingers in the store’s roller doors. Fearing further carnage, extreme discounts were subsequently dropped, but the crowds hoping to catch a bargain remained. By 2000, Boxing Day sales had become a firmly entrenched tradition.</p>
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<a href="https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Bargain shoppers try to push their way past a security guard to get into a store" src="https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/566768/original/file-20231220-29-ds88ao.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">The door buster sales stopped soon after one keen shopper was injured in the rush.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/mad-shoppers-breaking-into-shop-during-2369347377">DC Studio/Shutterstock</a></span>
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<p>Although the novelty had faded, Boxing Day sales nevertheless remained an exciting event. Television news crews continued to capture the excitement when the <a href="https://www.youtube.com/watch?v=PIK8dEA1pWc">stores opened</a> while newspapers reported on the size of crowds and what this revealed about the state of retail and the economy more generally. </p>
<p>By 2018, a discernible shift was occurring. <a href="https://www.theage.com.au/business/consumer-affairs/there-at-3am-bargain-hunters-up-before-dawn-for-boxing-day-sales-20181226-p50o8d.html">Fewer people were queuing up</a> and stores were opening later. The major department stores were no longer the dominant retailers they had once been. A broader range of brands and cheaper products could be found elsewhere, notably online, where bargains could be secured without the frustrations of dealing with other frantic shoppers.</p>
<h2>The arrival of online shopping</h2>
<p>Online shopping changed Australian shopping patterns as bargain hunters could now access overseas sales like Black Friday in the United States. Staged on the day after Thanksgiving, Black Friday is American retail’s busiest day that also kicks off the Christmas shopping season. Sales abound as retailers desperately chase shoppers. </p>
<p>Online has become an integral part of these sales, with Black Friday being extended to Cyber Monday. Australians shopping online have readily joined in.</p>
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<p>In 2022 Australians <a href="https://news.nab.com.au/news/black-friday-and-cyber-monday-sales-top-7-billion/">spent an estimated A$7.1 billion</a> over the Black Friday sales period. While this figure is eclipsed by the $23.5 billion predicted for Boxing Day sales period, the reality is the gap is shrinking fast.</p>
<p>This year, it is predicted Australian expenditure on Black Friday will exceed that for Boxing Day.</p>
<h2>Will Black Friday overtake Boxing Day?</h2>
<p>So, are Boxing Day sales doomed to become another lost tradition? Large discounts and the convenience of shopping online have certainly helped Black Friday’s rapid growth. However, its real advantage is timing. Shoppers not only use these sales for themselves, they can do their Christmas shopping at the same time. Such a combination means Black Friday has quickly become a fixture in Australian retailing.</p>
<p>Of course, Boxing Day sales are not dead. Wherever there are bargains to be had, there will always be shoppers ready to buy. Rather than competing with Black Friday, it seems that the challenge for Australian retailers is to reinvent the Boxing Day sales tradition.</p>
<p>Maybe it’s time to bring back the door buster bargains.</p><img src="https://counter.theconversation.com/content/219507/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robert Crawford receives funding from the Australian Research Council’s Discovery Project scheme (DP220100943) </span></em></p>Boxing Day has its origins in the Middle Ages and had nothing to do with post-Christmas sales. It is facing further change with the popularity of online shopping.Robert Crawford, Professor of Advertising, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2182412023-11-22T02:07:27Z2023-11-22T02:07:27ZReally need those new shoes? Why you might spend up big at the Black Friday sales<p>If you’re one of those people who line up for the <a href="https://www.history.com/news/black-friday-thanksgiving-origins-history">Black Friday</a> sales, jump online for <a href="https://www.reuters.com/world/china/what-is-chinas-singles-day-how-is-it-celebrated-2023-11-10/">Singles Day</a>, or are thinking you’ll queue outside the local department store on Boxing Day for the “real bargains”, rest assured, you are not alone.</p>
<p>Just like the thousands of people who line the harbour in Sydney to get a glimpse of the New Year’s Eve <a href="https://www.sydney.com/destinations/sydney/sydney-city/new-years-eve-sydney">fireworks</a>, one of those 30-somethings who are desperate for tickets for <a href="https://www.theguardian.com/music/2023/nov/09/taylor-swift-new-tickets-australia-eras-tour-2024-australian-shows-concerts-melbourne-sydney-ticket-resale">Taylor Swift’s Eras tour</a>, or the crazy Melburnians who sleep outside for days to get <a href="https://www.theage.com.au/sport/afl/how-the-afl-allocates-grand-final-tickets-and-why-so-many-die-hard-fans-miss-out-20230922-p5e6x4.html">AFL grand final tickets</a>, we’re all victims of some basic psychological factors. </p>
<p>These responses have evolved over millennia, even if the stimuli are very much contemporary.</p>
<h2>Scarcity and the need to belong</h2>
<p>When you succumb to the appeal “It’s finally here” or “get in before you miss out” or even “Hurry, these offers expire at midnight”, don’t be too hard on yourself. It’s an evolutionary thing and it’s actually quite useful.</p>
<p>As human beings, we assume if lots of people want something, then we should want it too. We also believe if something is rare, or <a href="https://link.springer.com/article/10.1007/s11747-018-0604-7">scarce</a>, it must be <a href="https://onlinelibrary.wiley.com/doi/abs/10.1002/mar.4220080105">desirable</a>. This is because everybody else seems to want it and they want it now. </p>
<p>Humans are social animals. Although we’d like to think we’re all independent thinkers, it is impossible to think about everything we do in isolation and on its merits. So, we look to others to help us decide.</p>
<p>If everyone in our “<a href="https://journals.sagepub.com/doi/abs/10.1177/1368430217690909?journalCode=gpia">in-group</a>” is buying the latest fashion, then we assume the group knows best, so we should do the same. Yes, we are all sheep. Well-dressed sheep, but sheep nonetheless. </p>
<p>But you shouldn’t be worried about that. We all do it, depending on the so-called <a href="https://study.com/academy/lesson/attitude-object-in-psychology-definition-lesson-quiz.html">attitude object</a>, that is, the item we form feelings about.</p>
<p>For example, adults criticising the “crazy” kids lining up to buy new sneakers or phones might be the same people who travel the world, spending thousands of dollars to see an <a href="https://www.nytimes.com/2009/09/20/travel/20Ring.html">opera</a>.</p>
<p>Funnily enough, we reconcile this process by assuring ourselves we are not followers, but have gone through an independent, rational process to justify our actions. We also tame our ego by <a href="https://psycnet.apa.org/record/2000-16701-001">believing</a> we are more sensible, rational and considered than the rest of the people in our group. It makes it easier to justify our sometimes irrational decisions.</p>
<p>When it comes sales, there is also another retail-specific factor at play.</p>
<h2>Ego Depletion</h2>
<p>When we walk into a shopping centre with lights, music, noise, hard surfaces, people and general overstimulation, we experience some form of ego depletion. It also plays out online, when we are confronted with huge amounts of information and pop-ups that say things like “four other people are looking at this product right now”</p>
<p><a href="https://pubmed.ncbi.nlm.nih.gov/27474142/">Ego depletion</a> doesn’t mean you instantly become a humble, thoughtful person. In psychology, we use this term to describe how people don’t always think through their decisions rationally when they are stressed. Although there’s some criticism of how researchers describe ego depletion, in general, too much stimulation leads to less rational decision making.</p>
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<p>So, all that noise, colour and movement isn’t just the shopping centre getting into the sales season, it’s also a technique to get you to respond to emotional cues, such as social norms, the fear of missing out and the ritual of the sale.</p>
<h2>Our inability to forecast and anticipated regret</h2>
<p>Psychological research tells us humans aren’t very good at predicting the future. Or perhaps we just have an overinflated sense of our accuracy in predicting the future — we rely on how we feel right now to predict how we might feel about something later. Psychologists call this “<a href="https://www.sciencedirect.com/science/article/abs/pii/S0749597801929826">affective forecasting</a>”.</p>
<p>So, when we are “in” the moment of the sale, we buy things we feel we need. But we discount all the other things that we’ve bought.</p>
<p>We’re also victims of a psychological phenomenon called “<a href="https://onlinelibrary.wiley.com/doi/10.1002/%28SICI%291099-0771%28199906%2912%3A2%3C93%3A%3AAID-BDM311%3E3.0.CO%3B2-S">anticipated regret</a>”. This occurs when we think about the future and see ourselves regretting having not taken the opportunity when it presented itself. When we think about the future, we not only anticipate events, we also experience the associated emotions of those events.</p>
<p>We also anticipate social effects. When other people might get what we are contemplating getting now, we may fall into anticipated envy, where we imagine them having the item and us wishing we had it.</p>
<p>Sales release a whole range of psychological responses and, for the most part (and in the short term), they work. When it comes to sales, we rarely plan, and so we are more susceptible to the gentle nudges of the marketers when we are stressed, in a hurry, and trying to do ten things at once.</p>
<h2>The importance of ritual</h2>
<p>All of these responses have parallels with a whole bunch of other rituals that we participate in. </p>
<p>Christmas, Halloween, and Valentine’s Day are all examples of rituals humans are drawn to help them to participate in the social world. While there is material consumption with these events, there is also a sense of community.</p>
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<p>As human beings, we look for rituals, we look for community through the things we do, and as other community rituals and institutions such as churches or strong familial and neighbourhood linkages break down, we look for ways to replace that. </p>
<p>The same basic principle is playing out with the Black Friday sales. What the sales are doing is playing upon our need to participate in rituals, but with a different objective. Sales are purely transactional and their goal is to sell us something, rather than giving us the opportunity to participate in perhaps the more rewarding rituals of Christmas or even <a href="https://www.3aw.com.au/halloween-continues-to-grow-in-popularity-with-australians-expected-to-spend-hundreds-of-millions/">Halloween</a>.</p>
<h2>So what can we do?</h2>
<p>There are ways to avoid giving into these psychological tendencies:</p>
<p><strong>1. Slow down</strong></p>
<p>The best advice I can give is to slow down the process. Giving yourself time to think (as opposed to respond) may help you to make a better decision. The marketers want you to move through the decision-making process as quickly as possible so that you are responding to your feelings, not your thoughts. </p>
<p><strong>2. Talk it through</strong></p>
<p>Before you buy, talk your purchase over with a friend (preferably one who doesn’t enable you too much). This is connected with the first piece of advice, it leads you to think a bit more. </p>
<p><strong>3. Make a list</strong></p>
<p>I know it’s boring, but if your motivation for attending the sale is to save money, making a list of what you want and giving yourself a budget is the best way to approach sales. And be prepared to walk away if it isn’t right.</p>
<p><strong>4. Calm down</strong></p>
<p>Try listening to music that calms you or simply take some deep breaths — a calm state is more likely to result in a more rational decision.</p>
<p><strong>5. Remember a sales person is not your friend</strong></p>
<p>Remind yourself the sales person is not your friend. They may be lovely, but their main role is to get you to buy. <a href="https://www.tandfonline.com/doi/abs/10.1080/08853134.2001.10754256">Reciprocity</a> theory tells us one of the best techniques of sales is to blur the line between social interactions and business interactions. A salesperson being nice to you (or offering you a discount) doesn’t mean that you have to buy their product (but do be nice back to them).</p>
<p><strong>6. Walk away</strong></p>
<p>A trick for the online world, is to put the item in your basket, then (virtually) walk away. Many online algorithms will send you an even better discount later on (although if it is connected with Black Friday sales this isn’t guaranteed).</p>
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<a href="https://theconversation.com/why-do-black-friday-shoppers-throw-punches-over-bargains-a-marketing-expert-explains-psychological-ownership-106673">Why do Black Friday shoppers throw punches over bargains? A marketing expert explains 'psychological ownership'</a>
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<p class="fine-print"><em><span>Paul Harrison does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>A fear of missing out and a need to belong are strong motivators when it comes to scooping up goods at bargain prices.Paul Harrison, Director, Master of Business Administration (MBA); Co-Director, Better Consumption Lab, Deakin University, Deakin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2038852023-04-25T20:44:40Z2023-04-25T20:44:40ZNew research reveals how a single consumer group has the power to influence product pricing<figure><img src="https://images.theconversation.com/files/522235/original/file-20230420-14-6zv0jr.jpg?ixlib=rb-1.1.0&rect=119%2C0%2C7821%2C5202&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">More and more consumers are engaging in showrooming, the practice of visiting brick-and-mortar retail stores to research a product before buying it elsewhere at a lower price.</span> <span class="attribution"><span class="source">(Shutterstock)</span></span></figcaption></figure><p>Have you ever gone to a store to try on shoes before going on to buy them elsewhere? Or had a salesperson talk you through the advantages of different models of printers before buying a cheaper version online? If so, you have engaged in “showrooming.”</p>
<p>Showrooming is the practice of visiting brick-and-mortar retail stores to research a product before buying it elsewhere at a lower price. It allows consumers to look and test out products before spending their money on them.</p>
<p>Showrooming, along with online shopping, has <a href="https://www.wsj.com/articles/SB10001424052702304587704577334370670243032">long been predicted to be a threat to retailers</a>. It’s easy to understand the concern — some have argued that showrooming is what led to the <a href="https://www.forbes.com/sites/greatspeculations/2015/05/08/what-could-radioshacks-bankruptcy-mean-for-best-buy/">demise of RadioShack and Circuit City</a>.</p>
<p>In addition, research has found that <a href="https://doi.org/10.1111/poms.12165">brick-and-mortar businesses do indeed suffer</a> from this type of consumer behaviour. Showrooming puts retailers under price pressure by intensifying competition and squeezing margins.</p>
<p>But this isn’t always the case. Recent years have seen stores that encourage showrooming, <a href="https://www.fool.com/investing/2019/03/19/call-it-reverse-showrooming-these-companies-are-ca.aspx">like Best Buy,</a> and companies like <a href="https://www.wsj.com/articles/amazon-retail-department-stores-11629330842">Amazon, that have invested in bricks-and-mortar stores,</a> to flourish. This suggests the reality of showrooming might be a little more complicated than initially thought.</p>
<h2>How consumers affect prices</h2>
<p>Our recent research dispels <a href="https://doi.org/10.1111/1756-2171.12305">the assumption that showrooming always drives prices down in retail</a>. Rather, <a href="https://doi.org/10.1287/mksc.2022.1376">our study found</a> the opposite can occur: showrooming can actually <em>increase</em> prices. </p>
<p>Our research took into account several different types of consumers. Some consumers were pickier than others and preferred to shop at stores with more product variety, while others engaged in showrooming. </p>
<p>Crucially, those who showroomed didn’t engage in price-comparison shopping — they did their research ahead of time and knew exactly what products and prices to seek out.</p>
<p>Some shoppers didn’t engage in showrooming because they felt guilty about buying a product elsewhere after a salesperson spent time marketing a product to them, or had no time to visit many different venues.</p>
<p>But other consumers were not-so-choosy and opted to shop at stores with less variety, with the intent of making a purchase, so long as they found a product that was a good enough fit. If they didn’t find an acceptable fit, they moved onto another store.</p>
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<img alt="A man trying on a pair of shoes in a shoe store." src="https://images.theconversation.com/files/521402/original/file-20230417-24-rgtpjv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/521402/original/file-20230417-24-rgtpjv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/521402/original/file-20230417-24-rgtpjv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/521402/original/file-20230417-24-rgtpjv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/521402/original/file-20230417-24-rgtpjv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/521402/original/file-20230417-24-rgtpjv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/521402/original/file-20230417-24-rgtpjv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Customers that showroom don’t typically engage in price-comparison shopping.</span>
<span class="attribution"><span class="source">(Shutterstock)</span></span>
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<p>Our research found that only this last kind of consumer — the not-so-choosy consumer who doesn’t showroom — was the key to determining prices. Their choices and behaviours determine product prices in any given sector.</p>
<p>The reason why showrooming can increase prices is because most consumers — including showroomers — do not compare prices. This leads stores to increase their prices (even just slightly) to make more profit.</p>
<h2>Stores and consumer behaviour</h2>
<p>Our research differs from past studies in a crucial way. Instead of assuming <a href="https://doi.org/10.1287/mnsc.2015.2384">there is only one kind of store</a> where consumers can discover how suitable a product is, our research accounted for three different types of stores. </p>
<p>The first type, known as deep stores, carry many varieties of products within a certain category. Best Buy, for example, carries many types of television to allow consumers to find the product that suits them best. Deep stores tend to charge higher prices because their shoppers are more likely to make a purchase. Picky consumers tend to shop here.</p>
<p>The second type, known as shallow stores, carry many different types of products, but fewer brands within each product category. Walmart and Costco are examples of shallow stores. These types of stores tend to have lower prices, and less picky consumers tend to shop there.</p>
<figure class="align-center ">
<img alt="A hand holding a credit card up while another hand navigates an online store on an open laptop." src="https://images.theconversation.com/files/522234/original/file-20230420-21-tpp99u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/522234/original/file-20230420-21-tpp99u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/522234/original/file-20230420-21-tpp99u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/522234/original/file-20230420-21-tpp99u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/522234/original/file-20230420-21-tpp99u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/522234/original/file-20230420-21-tpp99u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/522234/original/file-20230420-21-tpp99u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Online shopping and consumer behaviours like showrooming have changed the way the retail industry works.</span>
<span class="attribution"><span class="source">(Shutterstock)</span></span>
</figcaption>
</figure>
<p>Lastly, online stores offer the widest variety of goods (and usually at the lowest prices), but don’t allow consumers to test out products. The mix of consumers at these three store types affects how retailers price their products by shaping the shopping experience.</p>
<h2>Broader implications</h2>
<p>As <a href="https://www.retailitinsights.com/doc/showrooming-a-threat-or-an-opportunity-0001">showrooming becomes more widespread</a> — and easier to do thanks to online shopping — prices across the retail industry could increase, depending on price sensitivities and the overall mix of different kinds of consumers. </p>
<p>Ultimately, the range of different kinds of stores determines how people shop. Consumers’ shopping patterns and behaviours, in turn, determine prices.</p>
<p>While the perceived threat of showrooming has led to strong policy proposals — like one minister in Spain that <a href="https://www.thelocal.es/20180920/spain-wants-to-charge-shoppers-for-trying-on-clothes">proposed retailers should charge shoppers for using changing rooms</a> — our study suggests the effects of showrooming are more subtle than initially thought.</p>
<p>Understanding showrooming requires thinking about the impact the practice has on consumer shopping patterns and how stores respond to them. Retailers, policymakers and observers should be wary of over-emphasizing the role showrooming plays in bringing down prices and changing the retail landscape.</p><img src="https://counter.theconversation.com/content/203885/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Heski Bar-Isaac has in the past few years received funding from SSHRC, the David and Sharon Johnston Centre for Corporate Governance Innovation at the Rotman School of Management, and the Fundacion BBVA. </span></em></p><p class="fine-print"><em><span>Sandro Shelegia receives funding from European Research Council, Spanish Ministry of Economy and Competitiveness, and BBVA Foundation.</span></em></p>Retail stores change the prices of their products based on the shopping habits of consumers. But consumers come in a variety of types, and not all of them influence prices equally.Heski Bar-Isaac, Distinguished Professor of Economics and Finance, University of TorontoSandro Shelegia, Associate Professor, Department of Economics and Business, Universitat Pompeu FabraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1390252020-06-24T11:19:02Z2020-06-24T11:19:02ZCOVID-19 has changed the future of retail: there’s plenty more automation in store<figure><img src="https://images.theconversation.com/files/343416/original/file-20200623-188886-125sqlc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Australian supermarket giant Woolworths has announced its <a href="https://www.theaustralian.com.au/business/companies/woolies-to-spend-780m-on-hitech-warehouses/news-story/abe34d1ecf4af7500b2bd391bff4b584">single biggest investment</a> in logistics infrastructure, spending A$780 million to replace up to 1,300 workers with robots. </p>
<p>It plans to build one semi-automated and one fully automated distribution centre in south-west Sydney. About <a href="https://www.woolworthsgroup.com.au/page/media/Latest_News/woolworths-group-to-transform-nsw-supply-chain-network-with-investment-in-new-high-tech-distribution-centres/">650 jobs</a> will be created at the new centres, to open in 2024. Three existing centres (two in Sydney, one in Melbourne) will close as a result. </p>
<p>Woolworths’ chief supply chain officer, Paul Graham, emphasised <a href="https://www.itnews.com.au/news/woolworths-to-build-automated-distribution-centres-in-nsw-549603">the safety benefits</a> of automation:</p>
<blockquote>
<p>Cutting-edge automation will build tailored pallets for specific aisles in individual stores – helping us improve on-shelf product availability with faster restocking, reducing congestion in stores, and enabling a safer work environment for our teams with less manual handling.</p>
</blockquote>
<p>In these COVID-conscious times that’s the obvious spin. </p>
<p>But it’s true this is a response to the changes being wrought on the retail sector by COVID-19.</p>
<p>The principal change is a matter of pace. COVID-19 has turbocharged the shift to online shopping. Even as social-distancing rules ease, this trend will consolidate. Many bricks-and-mortar shops are in trouble, particularly those in shopping centres. </p>
<p>Retail will also be shaped by how COVID-19 has changed our shopping behaviour, with thrift and value being important. </p>
<h2>Shopping online is the new norm</h2>
<p>In April, 5.2 million Australians shopped online, according to Australia Post’s <a href="https://auspost.com.au/content/dam/auspost_corp/media/documents/2020-ecommerce-industry-report.pdf">2020 eCommerce Industry Report</a>. The Australian Bureau of Statistics estimates those sales were worth A$2.7 billion, <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/8501.0Main%20Features3Apr%202020?opendocument&tabname=Summary&prodno=8501.0&issue=Apr%202020&num=&view=">11.1% of all physical retail sales</a>, compared with 7.1% in March 2019.</p>
<p>This <a href="https://www.afr.com/companies/retail/grocery-deliveries-delayed-as-online-shopping-soars-20200309-p5483v">sharp hike in demand</a> exposed weaknesses in retailers’ <a href="https://home.kpmg/au/en/home/insights/2020/04/coronavirus-COVID-19-retail-survival-and-revival.html">online capabilities</a>. For example, crushing online demand meant both Woolworths and major rival Coles temporarily <a href="https://insidefmcg.com.au/2020/03/17/woolies-and-coles-suspend-online-orders-as-shoppers-descend-on-sites/">suspended</a> their online shopping services. </p>
<p>More automated fulfilment centres are part of meeting these online demands. Of course, such investments were already on the radar.</p>
<p>In March 2019, Coles announced <a href="https://www.colesgroup.com.au/media-releases/?page=coles-enters-partnership-with-ocado">an exclusive deal</a> to use the “end-to-end online grocery shopping solution” developed by Ocado, a British online supermarket chain that has no stores, only warehouses. Its technology spans the online shopping experience, automated fulfilment and home delivery. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/343628/original/file-20200624-132380-1yrvzge.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/343628/original/file-20200624-132380-1yrvzge.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/343628/original/file-20200624-132380-1yrvzge.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/343628/original/file-20200624-132380-1yrvzge.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/343628/original/file-20200624-132380-1yrvzge.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/343628/original/file-20200624-132380-1yrvzge.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/343628/original/file-20200624-132380-1yrvzge.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">An Ocado warehouse in Wimbledon, southwest London.</span>
<span class="attribution"><span class="source">Willy Barton/Shutterstock</span></span>
</figcaption>
</figure>
<p>The Coles plan included two new “highly automated” customer fulfilment centres in Melbourne and Sydney, to be ready in 2023. Coles also announced plans for two new automated distribution centres in Queensland and NSW, costing A$700 million, <a href="https://www.afr.com/companies/retail/redundancies-loom-as-coles-eyes-automation-spend-to-catch-woolworths-20181004-h168qt">in October 2018</a>.</p>
<p>Woolworths itself has already opened the Melbourne South Regional Distribution Centre, whose automated features are hyped in the following promotional video.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/yO6xZo3_p4s?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>So these latest moves are part of a trend, albeit one unexpectedly accelerated by COVID-19. And once consumers try new channels, <a href="https://journals.sagepub.com/doi/full/10.1509/jm.09.0362?">studies</a> show, they are likely <a href="https://link.springer.com/article/10.1007/s40547-014-0031-y">to stick with them</a>. </p>
<h2>The future is dark</h2>
<p>At the other end of the supply chain, the shift to online shopping has created demand for “<a href="https://www.businessinsider.com.au/dark-stores-online-retail-coronavirus-2020-4">dark stores</a>” – essentially, stores without customers. These smaller, decentralised facilities, located in suburbs rather than industrial parks, are designed to pick and dispatch online orders quickly. </p>
<p>Woolworths opened its first dark store <a href="https://www.smh.com.au/business/companies/woolworths-opens-first-onlineonly-dark-store-20140811-102lh0.html">in Sydney in 2014</a>. <a href="https://www.smh.com.au/business/companies/dark-stores-coles-trials-shops-with-no-customers-20160622-gpowau.html">Coles</a> opened its first in Melbourne in 2016. Existing stores are also being repurposed as dark stores. In April 2020, Australia’s Kmart temporarily converted three stores to use <a href="http://mhdsupplychain.com.au/2020/04/17/kmart-closes-stores-to-convert-them-into-distribution-centres/">as fulfilment centres</a>. </p>
<p>Such moves may become permanent, as shoppers demand faster delivery times and physical store assets become less viable as “traditional” retail businesses.</p>
<p>Existing stores are also being adapted to respond to customer demands for faster, more efficient online shopping. In January 2020, Woolworths began building its first “<a href="https://www.woolworthsgroup.com.au/page/media/Press_Releases/carrum-downs-the-first-woolworths-in-australia-to-get-cutting-edge-online-shopping-technology/">eStore</a>” - an automated facility adjoining its supermarket in Carrum Downs, Melbourne. </p>
<h2>Fewer, smaller stores</h2>
<p>As online shopping increasingly provides greater revenue streams for retailers, more physical store closures are also on the cards.</p>
<p>In May, Kmart’s owner, Wesfarmers, announced it would <a href="https://theconversation.com/dont-blame-covid-19-targets-decline-is-part-of-a-deeper-trend-139205">shut 75</a> of its Target stores (and convert the rest to Kmart stores). Also looking to downsize are Australian department store icons <a href="https://www.smh.com.au/business/companies/myer-better-off-with-fewer-stores-geoff-wilson-20200330-p54f77.html">Myer</a> and David Jones, which have accelerated their plans to reduce floor space <a href="https://www.smh.com.au/business/companies/david-jones-accelerates-store-closures-as-sales-slump-35-per-cent-20200527-p54wyj.html">20% by 2025</a>.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/dont-blame-covid-19-targets-decline-is-part-of-a-deeper-trend-139205">Don't blame COVID-19: Target's decline is part of a deeper trend</a>
</strong>
</em>
</p>
<hr>
<p>Footwear giant Accent Group – which owns more than a dozen shoe brands and has more than 500 stores in Australia and New Zealand – is planning to close <a href="https://www.9news.com.au/national/accent-to-close-28-in-shift-to-online-retail/3a547554-27f3-4413-9675-3510f7c74437">28 stores</a> and focus more on online sales. </p>
<p>As online revenues grow, expect more “right-sizing” and closures.</p>
<h2>Repurposing shopping centres</h2>
<p>All these closures will add to the woes of shopping centres. </p>
<p>Though crowds reportedly <a href="https://www.abc.net.au/news/2020-05-09/shoppers-raise-alarm-over-coronavirus-social-distancing/12231780">surged</a> back to centres when “lockdown” restrictions were eased, growing awareness that the pandemic is not over and social distancing protocols continue to <a href="https://theconversation.com/coronavirus-has-turned-retail-therapy-into-retail-anxiety-keeping-customers-calm-will-be-key-to-carrying-on-138777">create consumer anxiety</a>.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/brick-bait-three-tricks-up-retailers-sleeves-to-lure-you-back-to-physical-shops-107506">Brick-bait: three tricks up retailers' sleeves to lure you back to physical shops</a>
</strong>
</em>
</p>
<hr>
<p>Until people feel safe shopping, dining and gathering in crowded public places, <a href="https://www.smh.com.au/business/markets/damaged-and-scarred-psychological-effect-of-pandemic-set-to-hold-back-economic-recovery-20200506-p54q64.html">consumer aversion</a> will remain. </p>
<p>In response to these COVID-conscious times, shopping centres will endeavour to enhance those aspects of the shopping experience, such as sensory elements and entertainment, which the online shopping experience can’t provide. </p>
<p>The retail mix will change: fewer fashion and general merchandise shops, and more services such as medical centres, offices and childcare centres. </p>
<h2>Opportunities for smaller retailers</h2>
<p>One bright spot may be for local and independent shops. </p>
<p>Smaller retailers can often adapt faster than larger ones. Smaller community pharmacies, for example, implemented social distancing and hygiene measures more easily than larger retailers, due mainly to their smaller size and having less traffic. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/coronavirus-shopping-tips-to-keep-you-safe-at-the-supermarket-137013">Coronavirus shopping tips to keep you safe at the supermarket</a>
</strong>
</em>
</p>
<hr>
<p>There are opportunities to leverage shoppers’ desire to <a href="https://thenewdaily.com.au/finance/consumer/2020/03/19/coronavirus-small-business-support/">support</a> local shopkeepers, producers and growers. Locally made goods and services are also less likely to have long supply chains that will impede overseas deliveries while COVID-19 is uncontained.</p>
<p>But they’ll still need to sort out their online shopping experience.</p><img src="https://counter.theconversation.com/content/139025/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Louise Grimmer has received funding from Cooperative Research Centres. These are joint initiatives between government, industry and academia. The funding does not relate to this article. </span></em></p><p class="fine-print"><em><span>Gary Mortimer, Jana Bowden, Jason Pallant, and Martin Grimmer do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Woolworths’ A$780 millon investment in new automated distribution centres is a sign of how much COVID-19 has changed the way we shop. It points what’s to come in the retail sector.Gary Mortimer, Professor of Marketing and Consumer Behaviour, Queensland University of TechnologyJana Bowden, Associate Professor of Marketing and Consumer Behaviour, Macquarie UniversityJason Pallant, Lecturer of Marketing, Swinburne University of TechnologyLouise Grimmer, Senior Lecturer in Marketing, University of TasmaniaMartin Grimmer, Professor of Marketing, University of TasmaniaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1246132019-10-02T19:41:38Z2019-10-02T19:41:38Z3 reasons Forever 21’s bankruptcy doesn’t spell the end of brick-and-mortar retailing<figure><img src="https://images.theconversation.com/files/295287/original/file-20191002-49369-1v5cuvy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Clothing racks won’t be going away anytime soon.</span> <span class="attribution"><span class="source">AP Photo/Wilfredo Lee</span></span></figcaption></figure><p>Affordable fashion brand Forever 21’s <a href="https://www.nytimes.com/2019/09/29/business/forever-21-bankruptcy.html">decision to file for bankruptcy</a> and shutter hundreds of its stores has resurrected the notion that online retailing is killing old-fashioned brick and mortar retailing.</p>
<p><a href="https://www.thestreet.com/video/forever-21-bankruptcy-signaling-death-of-mall-retail--15109130">Some</a> are <a href="https://thestatetimes.com/2019/09/13/the-death-of-retail-forever-21-petitions-for-bankruptcy/">suggesting</a> the <a href="https://www.ipc.be/services/markets-and-regulations/e-commerce-market-insights/e-commerce-articles/global-ecommerce-figures-2017">strong growth of e-commerce</a> – coupled with <a href="https://www.digitalcommerce360.com/article/e-commerce-sales-retail-sales-ten-year-review/">slow sales at physical stores</a> – <a href="https://www.crainsdetroit.com/retail/forever-21-files-bankruptcy-adding-retail-apocalypse">portends the doom</a> of traditional retailing. <a href="https://dailyreporter.com/2019/02/09/hardware-store-closing-displays-small-town-retail-struggles/">No more mom and pop hardware stores</a>, <a href="https://slate.com/culture/2006/05/the-death-of-the-independent-bookstore.html">no more independent bookstores</a>, <a href="https://time.com/4865957/death-and-life-shopping-mall/">no more shopping malls</a>. </p>
<p>Since 2004, I have studied the <a href="https://scholar.google.com/citations?user=Kl7wt_kAAAAJ&hl=en">economics of retailing</a>, from big-box retailing to online shopping platforms. I believe there are limits to what e-commerce can upend. Here are three advantages physical stores still have over their online-only rivals.</p>
<h2>Scratch and sniff</h2>
<p>Even with the promise of same-day delivery, e-tailers like Amazon <a href="https://www.latimes.com/business/la-fi-same-day-delivery-20171218-story.html">will never be able to deliver fast enough</a> or satisfy many consumer needs.</p>
<p>Need a battery for your child’s new toy? A shot of caffeine? Convenience stores always seem to be either around the corner from home or along the interstate. As such, they are strategically located in places where consumers want to take immediate possession. For evidence, look no further than the <a href="https://cstoredecisions.com/2018/10/12/positioning-7-eleven-for-the-future/">strategy of 7-Eleven</a>, which has been expanding and opening new stores, particularly in urban areas where there is more foot traffic and on-the-go consumers. </p>
<p>Remember Peapod.com? Online food and beverage sales have been around since the early 2000s, yet <a href="https://content-na1.emarketer.com/grocery-ecommerce-2019">Americans still buy 98% of their groceries offline</a>. One way to explain this is that <a href="https://content-na1.emarketer.com/consumers-remain-skeptical-about-ordering-fresh-and-frozen-food-online">there is simply no substitute</a> for physically inspecting the produce or trusting that the refrigerated products will arrive unspoiled.</p>
<p>More broadly, consumers often want to touch, feel or try a product before making a purchase. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/295307/original/file-20191002-49397-156m45a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/295307/original/file-20191002-49397-156m45a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/295307/original/file-20191002-49397-156m45a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/295307/original/file-20191002-49397-156m45a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/295307/original/file-20191002-49397-156m45a.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/295307/original/file-20191002-49397-156m45a.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/295307/original/file-20191002-49397-156m45a.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Nordstrom’s latest stores are more for show than sales.</span>
<span class="attribution"><span class="source">AP Photo/Richard Drew</span></span>
</figcaption>
</figure>
<h2>Best of both worlds</h2>
<p>In some ways, the same can be said for apparel. It is hard for many of us to know whether we like a new pair of pants or blouse until we’ve tried it on. </p>
<p>But unlike the grocery business, this is an area where online retailers have a distinct advantage because they’ve made it easy for consumers to order a shirt off the internet, try it at home and then send it back if it’s not quite right. </p>
<p>That’s why online apparel sales are surging and <a href="https://www.digitalcommerce360.com/article/online-apparel-sales-us/">made up more than a third</a> of all clothing sold in the U.S. in 2018. It’s not just online-only retailers that are cashing in, however. </p>
<p>Traditional brands like Banana Republic, J. Crew and Uniqlo have been successful at <a href="https://www.doi.org/10.1509/jmr.14.0518">incorporating an online presence</a> with their physical stores. An advantage they have over newer online brands is that consumers already know and trust them. The combination allows the customers to view and inspect new seasonal products in the store and follow up with online purchases. </p>
<p>A related trend in upscale apparel retailing is the store with no inventory. Department store chain Nordstrom, for example, created a line of “<a href="https://shop.nordstrom.com/store-details/nordstrom-local-brentwood">showroom stores</a>” that focus on providing patrons with fashion advice, store pickup and even help with dry cleaning. For Nordstrom, the abundance of online competitors <a href="https://www.washingtonpost.com/news/morning-mix/wp/2017/09/12/nordstroms-wild-new-concept-a-clothing-store-with-no-clothes/">is seen as a competitive advantage</a> because many consumers are looking for a respite from the overwhelming number of fashion choices out there.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/295310/original/file-20191002-49350-1adcgle.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/295310/original/file-20191002-49350-1adcgle.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=399&fit=crop&dpr=1 600w, https://images.theconversation.com/files/295310/original/file-20191002-49350-1adcgle.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=399&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/295310/original/file-20191002-49350-1adcgle.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=399&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/295310/original/file-20191002-49350-1adcgle.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=501&fit=crop&dpr=1 754w, https://images.theconversation.com/files/295310/original/file-20191002-49350-1adcgle.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=501&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/295310/original/file-20191002-49350-1adcgle.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=501&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The traditional, indoor shopping mall is known for its soaring atrium and sprawling floor plan.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/kishjar/9719921230/in/photolist-p72jki-dDEc2q-dLK3mB-nxjJhQ-nMgvwH-56ZF2A-65Ggv3-emCq5B-fNV8WN-8QXWWX-aqC9XM-hNPBxS-ccqFXq-nwWEg1-729tmu-r47F4g-qtTJLd-4LqGp5-5Dxv3u-9xWZZm-8E9ZSU-cik6tw-5eq35N-71aCKM-4YPdcK-e3jHpV-noqQjH-utq3c-dZRVQg-qiwLTy-3aoarp-kyeyW4-kFCW5v-dXFscJ-bCiRmA-9xvCRo-dPUbNu-pL1ZNe-gVrMjo-5XPJW1-8ofESZ-cH4joh-jNDEQV-nfHEbd-bGchUi-5Nh2P-cG3YFW-piKWHt-a1b3QT-st1Xi">kishjar?/Flickr.com</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<h2>Socializing at the mall</h2>
<p>The outlook for the traditional shopping mall, however, remains bleak. </p>
<p>Vacancy rates at regional shopping centers <a href="https://www.reuters.com/article/us-usa-property-retail/us-retail-vacancy-rates-down-marginally-in-second-quarter-reis-idUSKCN1TY0CC">reached 9.3%</a> earlier this year, the highest rate in <a href="https://www.calculatedriskblog.com/2018/03/">about eight years</a>. Analysts expect <a href="http://time.com/4865957/death-and-life-shopping-mall/">one out of four malls to close</a> by 2022. </p>
<p>But just because people are buying more stuff online doesn’t mean they don’t enjoy the social experience of shopping at a mall. And this is an area where e-commerce can’t compete. </p>
<p>To exploit this advantage, today’s most profitable malls <a href="https://theconversation.com/lifestyle-centers-reinvented-communities-or-dressed-up-shopping-malls-36752">have rebranded themselves</a> as “lifestyle centers” in order to convey that they are places to experience a part of life – not just to buy things. </p>
<p><a href="https://www.forbes.com/sites/samanthasharf/2018/10/11/the-walt-disney-of-retail-meet-the-billionaire-building-the-malls-of-the-future-1/#4614e11330fc">An early visionary of this trend was The Grove in Los Angeles</a>, currently one of the most profitable malls in the country. It <a href="https://fortune.com/2014/10/29/malls-that-make-the-most/">was built in the 2000s</a> just as e-commerce was picking up speed, and has thrived even as online retail has dominated. </p>
<p>The flipside of the lifestyle center is the outlet mall, which sells brand-name fashion at deep discounts. Their <a href="https://www.wsj.com/articles/surprise-outlet-malls-are-hot-1490094007">occupancy rate</a> is about 98%. Since they’re often located far from the city, branded manufacturers can set “deals” for bargain hunters without harming their cachet at urban, flagship locations.</p>
<h2>Survival instincts</h2>
<p>There is no doubt that online shopping is convenient. But these retail trends show that there are factors other than convenience that drive consumer choices.</p>
<p>For Forever 21, it probably came down to the simple fact that fashion trend cycles can be cruel – especially to brands targeting mall-strolling teens. The retailer did the best it could blending bricks and online, but it clearly wasn’t enough. </p>
<p>While some traditional retailers will survive the “retail apocalypse,” many will not.</p>
<p>[ <em>You’re smart and curious about the world. So are The Conversation’s authors and editors.</em> <a href="https://theconversation.com/us/newsletters?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=youresmart">You can read us daily by subscribing to our newsletter</a>. ]</p><img src="https://counter.theconversation.com/content/124613/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Anthony Dukes receives funding from the Marketing Science Institute. </span></em></p>A retail expert explains why brick-and-mortar brands will continue to thrive in the age of e-commerce.Anthony Dukes, Professor of Marketing, University of Southern CaliforniaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1212442019-08-07T20:03:21Z2019-08-07T20:03:21ZMore than milk and bread: corner store revival can rebuild neighbourhood ties<figure><img src="https://images.theconversation.com/files/286991/original/file-20190806-36399-1jtezo4.gif?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">When neighbourhoods lose their corner stores, they also lose a place where people meet and feel like part of their local community.</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/spin_spin/1801688272/in/photolist-3Kd89U-6j3PUV-HQ1sCC-jDWnND-6n7scD-BMwouN-2aAivYW-8os9Ec-9iyxcR-TGyjgJ-8BQv7h-2cbRkNt-595PzS-eNNkb-qh3ymo-m2i3XN-dP4Hap-bheK6k-7e1ad-2ffVjvn-28Xko7b-8Dvp8-5UA74V-az6oEw-az3N5a-au5N19-npBGXE-RNDSwK-24XrRde-4dKUws-v8r4K-dyd9uN-7KvyMe-dzpEqN-7ijAcR-7iGZp-az3N6k-v8r4M-5UA7dH-az6oDJ-nxYow-az6oBm-6aqRrH-5Rp5X6-nxYpH-tgsVqT-DjeqiD-7A9gzx-5CHk2p-nxYpq">Susan Fitzgerald/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span></figcaption></figure><p>Do you have a corner store? Once an icon of suburban Australia, <a href="https://www.abc.net.au/news/2019-07-21/the-death-of-the-milk-bar-deli-corner-store-an-australian-icon/11279638">many neighbourhood corner stores vanished</a> in the face of unrelenting competition from large supermarkets, global convenience franchises, modern service stations and extended trading hours. </p>
<p>Many will argue this is just the evolution of modern Australian retailing. Few consider the social and community impacts of the loss of this former neighbourhood cornerstone. </p>
<p>Lately, though, a corner-store revival of sorts has been under way. A new generation of shopkeepers is offering a contemporary twist on the old milk bar. These new stores could play an important role in restoring the sense of community that many feared had been lost along with the corner store.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/kebab-urbanism-melbournes-other-cafe-makes-the-city-a-more-human-place-112228">Kebab urbanism: Melbourne's 'other' cafe makes the city a more human place</a>
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<h2>The bigger things get, the more isolated we feel</h2>
<p>As massive shopping centres emerged and urban population density increased, the <a href="https://journals.sagepub.com/doi/abs/10.1177/0013916578102007">connectedness with community</a> people once felt diminished. <a href="https://www.mdpi.com/1660-4601/16/3/406">Research</a> has shown feelings of loneliness and social isolation are directly related to neighbourhood attachment and indirectly related to local amenities. </p>
<p><a href="https://www.jstor.org/stable/2768119?seq=1#metadata_info_tab_contents">Social anonymity theory</a> is often used to explain the level of connectedness within society. Sociologist Louis Wirth seminal 1938 work, <a href="http://www.sjsu.edu/people/saul.cohn/courses/city/s0/27681191Wirth.pdf">Urbanism as a Way of Life</a>, highlighted the elements of social anonymity and isolation as cities grew. He noted the relative absence of intimate personal acquaintances, and the segmentalisation of human relations which are largely anonymous, superficial and transitory.</p>
<p>Simply, as cities grew larger, people began to feel anonymous and isolated. We stand on busy trains, trams and buses every morning, surrounded by people, yet can feel very alone. </p>
<p>A <a href="https://www.domain.com.au/news/why-dont-we-know-our-neighbours-anymore-20150727-gijjkx/">recent survey found</a> only half of us would recognise our neighbour if we saw them on the street, or would invite a neighbour into our homes. Similar findings have been made in comparable nations like the <a href="https://qz.com/916801/americans-dont-know-their-neighbors-anymore-and-thats-bad-for-the-future-of-democracy/">United States</a> and <a href="https://www.independent.co.uk/news/uk/home-news/britons-neighbours-strangers-uk-community-a8373761.html">United Kingdom</a>. </p>
<h2>A local meeting place</h2>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/286992/original/file-20190806-36386-i476je.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/286992/original/file-20190806-36386-i476je.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/286992/original/file-20190806-36386-i476je.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=478&fit=crop&dpr=1 600w, https://images.theconversation.com/files/286992/original/file-20190806-36386-i476je.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=478&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/286992/original/file-20190806-36386-i476je.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=478&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/286992/original/file-20190806-36386-i476je.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=601&fit=crop&dpr=1 754w, https://images.theconversation.com/files/286992/original/file-20190806-36386-i476je.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=601&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/286992/original/file-20190806-36386-i476je.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=601&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Until the 1970s, milk bars were a ubiquitous feature of Australian neighbourhoods. This is Adelaide Street, Brisbane, in 1952.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/queenslandstatearchives/35249737332">Queensland State Archives</a></span>
</figcaption>
</figure>
<p>From the 1950s until the early 1970s, almost every suburban neighbourhood had a corner store. Locals of all ages were drawn to these shops for newspapers, bread, milk, tobacco, ice-creams and mixed lollies. </p>
<p>Stores were more than just economic hubs, they were social by nature. People knew their local shopkeepers, and shopkeepers knew their customers. </p>
<p>Children experienced that first taste of independence in walking or riding their bike to the local shop, often with the family dog in tow. Shopping locally involved picking up a few items for Mum and Dad as well as the obligatory ice-cream or bag of mixed lollies. </p>
<p>A typical scene outside a local store would show children on bikes, dogs waiting by the door and customers stopping for a chat while picking up the essentials. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/why-outer-suburbs-lack-inner-citys-third-places-a-partial-defence-of-the-hipster-110177">Why outer suburbs lack inner city's 'third places': a partial defence of the hipster</a>
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<hr>
<h2>Decades of decline</h2>
<p>From 1980 onwards a combination of factors created a “perfect storm” that led to the closure of neighbourhood stores across Australia. </p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/8UgEU5PajpM?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Milk bars started vanishing from Australia neighbourhoods in the 1980s.</span></figcaption>
</figure>
<p>The introduction of <a href="http://www.parliament.wa.gov.au/publications/tabledpapers.nsf/displaypaper/3913630c4c89484c6f50f86348257f0300062a78/$file/tp-3630.pdf">Sunday trading</a> for large grocery stores and the growth of convenience stores combined with petrol stations meant customers could buy most items sold in their local corner store from supermarkets and service stations, often at much cheaper prices. </p>
<p>BIS Shrapnel reported a <a href="https://australianfoodtimeline.com.au/corner-stores/">34% decrease in the number of corner stores between 2010 and 2012</a>. Australian Food News reported in 2012 that the numbers of traditional milk bars had <a href="http://www.ausfoodnews.com.au/2012/10/30/convenience-stores-in-australia-a-revolution-and-more-evolution.html">declined significantly over the previous 30 years</a>.</p>
<p>As well, the immigrant parents who had run many stores found their <a href="https://www.tandfonline.com/doi/pdf/10.1080/01419870.2016.1206591">children were often reluctant to take over a business</a> with long hours and modest returns. Stores suffered and many closed. When the family-run business failed, one, two or three generations often moved away from the area.</p>
<p>The closure of local corner stores left both literal and figurative holes in neighbourhoods. People had no choice but to shop full-time at larger supermarkets, often further from home and requiring car travel. </p>
<p>Eamon Donnelly has painstakingly documented the history of the corner store and the ubiquitous milk bar. His book, <a href="https://www.nytimes.com/2018/06/07/dining/milk-bars-australia.html">Milk Bars</a>, traces the history of Australia’s love affair with the local store in a striking collection of images of once thriving and later abandoned stores around the country.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/PPL2MtginHo?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">The Milk Bars book by Eamon Donnelly documents corner stores across Australia.</span></figcaption>
</figure>
<p>Empty store fronts have <a href="http://www.retailthinktank.co.uk/whitepaper/what-impact-do-shop-vacancies-have-on-towns-and-cities-across-the-uk-and-what-can-be-done-to-address-the-problem/">significant local economic and social impacts</a> for consumers, existing retailers, landlords and local authorities. Vacant buildings very visibly symbolise a neighbourhood in decline and potentially <a href="https://www.hindawi.com/journals/isrn/2012/246142/">harbour illegal activities</a>. </p>
<h2>Reviving the corner store</h2>
<p>In some urban and suburban areas, the humble corner store is <a href="https://www.abc.net.au/news/2019-03-10/what-canberra-local-shops-are-doing-to-survive/10563154">having a revival</a> of sorts. </p>
<p>A new generation of shopkeepers is reinventing the local store. These new stores are striving to meet the demands of a new kind of local customer by providing a friendly, local shopping experience. They are introducing in-house chefs, cafes and pop-up tastings, stocking local products, spruiking eco-credentials and supporting local schools, charities and causes. The new breed of local shopkeepers are keen to encourage recycling, <a href="https://www.theguardian.com/environment/2019/apr/21/the-zero-waste-revolution-how-a-new-wave-of-shops-could-end-excess-packaging">low- or zero-waste products and packaging</a>, and sustainable retailing. </p>
<p>Aided by social media marketing, these stores are sharing their personal stories and in many areas are the new community hubs. In some suburbs, old milk bars are being revived in all their former retro glory. Customers can relive their childhood experiences of <a href="https://www.sbs.com.au/news/small-business-secrets/article/2017/11/20/milk-bar-thats-blast-past">pinball machines, mixed lollies and proper milkshakes</a>.</p>
<h2>Rebuilding stores and communities</h2>
<p>Sadly, not all corner stores can be revived. For those that are, the benefits for the local community are tangible. Local stores have an important role to play in rebuilding a sense of community and trust, as they foster social engagement and encourage people to walk or ride their bikes in their local area. </p>
<p>While many corner stores have closed over the past 30 years, the success of those that have survived or been revived is based on adapting to what local consumers are demanding – convenience, coffee and community. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/flat-white-urbanism-there-must-be-better-ways-to-foster-a-vibrant-street-life-78338">Flat white urbanism: there must be better ways to foster a vibrant street life</a>
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<p>In suburbs and inner-urban areas many small stores are <a href="https://www.smh.com.au/national/nsw/nostalgia-tourism-and-the-modern-reinvention-of-the-sydney-milk-bar-20171218-h06cpk.html">reinventing the idea of what a corner store can and should be</a>. Buildings are beginning to be <a href="https://www.eplace.com.au/lifestyle/blog/bulimba/hawthorne-garage">repurposed and refurbished</a>. This restores a sense of pride in local areas and encourages <a href="https://www.therealestateconversation.com.au/blog/andrew-wilson/gentrification-transforms-neighbourhoods/andrew-wilson-my-housing-market">further development</a> and new businesses to open, like the old <a href="https://brisbanedevelopment.com/west-village-proposal-unveiled/">Peters Ice-cream Factory</a> in Brisbane’s West End. </p>
<p>Local retailing in urban centres can act as a “<a href="https://www.jrf.org.uk/sites/default/files/jrf/migrated/files/2050-public-space-community.pdf">social glue</a>”. People are again <a href="https://www.morningadvertiser.co.uk/Article/2018/01/03/High-streets-to-become-social-places-predicts-retail-expert-Mary-Portas">looking to connect with their community around local shopping</a>.</p><img src="https://counter.theconversation.com/content/121244/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>As neighbourhoods lost their milk bars, they also lost a daily point of connection for locals. But all is not lost. In some areas, the humble corner store is making a comeback.Louise Grimmer, Lecturer in Retail Marketing, Tasmanian School of Business and Economics, University of TasmaniaGary Mortimer, Professor of Marketing and Consumer Behaviour, Queensland University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1075062019-01-06T19:05:34Z2019-01-06T19:05:34ZBrick-bait: three tricks up retailers’ sleeves to lure you back to physical shops<figure><img src="https://images.theconversation.com/files/251410/original/file-20181219-27764-1sm82xd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Department stores and clothing retailers are drawing on consumer behaviour and psychological research to compete with online shopping.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Bricks-and-mortar retail stores are under intense pressure from online competition. Feeling the most heat are clothes shops and department stores. </p>
<p>This year David Jones’s profit halved, to A$64 million. Myer declared a “disappointing” <a href="https://www.abc.net.au/news/2018-09-12/myer-full-year-results-2018/10236074">A$486 million loss</a>. German giant Esprit, whose global sales have fallen 40% in four years, has shuttered <a href="https://www.ibisworld.com/industry-insider/analyst-insights/espirit-the-clothing-retailer-set-to-close-its-australian-stores/">its Australian operations</a>. The US-based Gap closed its <a href="https://www.news.com.au/finance/business/retail/gap-closes-final-australian-store-ending-its-disastrous-foray-down-under/news-story/c27860366c3c290e087339aaec3c8503">last Australian store</a> back in February. Other brands to have collapsed include Metalicus, Oroton, Marcs, David Lawrence and Pumpkin Patch.</p>
<hr>
<p><iframe id="43k4k" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/43k4k/1/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<hr>
<p>What to do?</p>
<p>One answer is to invest in and enhance those aspects of the shopping experience that online retailers just can’t provide. </p>
<p>To do so department stores and clothing retailers are drawing on consumer behaviour and psychological research to make themselves more appealing – sometimes without shoppers even consciously realising it. </p>
<p>Here are three of the most significant strategies.</p>
<h2>Home is where your heart is</h2>
<p>Shopping from home is comfortable. You can do it in your time. You feel no pressure to hurry up and buy something. You can do it in your pyjamas. </p>
<p>To compete against the home shopping experience, retailers are exploring how to make you feel more at home in their stores. Tactics involve evoking sensory familiarity through furnishings, lighting and even scents.</p>
<p>Men’s clothing retailer Rodd & Gunn is taking the homeliness vibe to its logical extreme, with shop fit-outs that mimic an actual home.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/247179/original/file-20181126-149311-1x3m3l0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/247179/original/file-20181126-149311-1x3m3l0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=368&fit=crop&dpr=1 600w, https://images.theconversation.com/files/247179/original/file-20181126-149311-1x3m3l0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=368&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/247179/original/file-20181126-149311-1x3m3l0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=368&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/247179/original/file-20181126-149311-1x3m3l0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=463&fit=crop&dpr=1 754w, https://images.theconversation.com/files/247179/original/file-20181126-149311-1x3m3l0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=463&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/247179/original/file-20181126-149311-1x3m3l0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=463&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Rodd & Gunn’s ‘experiential’ retail store in Chadstone, Melbourne.</span>
<span class="attribution"><span class="source">Rodd and Gunn blog</span></span>
</figcaption>
</figure>
<p>The picture above shows Rodd & Gunn’s “<a href="https://www.insideretail.com.au/news/stores-news/rodd-gunn-opens-experiential-chadstone-store-201810">experiential store</a>” in Chadstone, Melbourne. There’s a slanted wood-panelled ceiling to evoke a real house roof. In the centre of the shop floor is a “living room” space with sofa, armchairs and a coffee table. Artworks hang on the walls. It’s all intended to make you feel as relaxed (almost) as you would in your own home.</p>
<p>This approach reflects the research that shows how <a href="https://www.sciencedirect.com/science/article/pii/S096969891630577X">familiar design elements</a> help make shoppers feel comfortable. Colour and music choices apparently don’t make much difference, but layout and other sensory experiences do. </p>
<p>Familiar scents, for example, can affect your decision to go into a store, how long you stay and ultimately how much you spend. They are particularly effective when they <a href="https://www.sciencedirect.com/science/article/pii/S0969698916305483">complement</a> the brand, such as the faint smell of wood in a hardware store or a more herbal scent in a wellness store.</p>
<h2>You want space, but not too much</h2>
<p>What can make or break your experience in a shop is how the staff treat you. As <a href="https://www.researchgate.net/publication/282224094_The_Thin_Line_between_Love_and_Hate_of_Attention_The_Customer_Shopping_Experience">Sarah Alhouti and her colleagues</a> have put it, there’s a thin line between love and hate of attention. </p>
<p>An overly attentive salesperson can be perceived as desperate, pushy or aggressive and <a href="https://www.sciencedirect.com/science/article/abs/pii/S0148296304000372">drive you away</a>. Too little attention, on the other hand, can leave you feeling <a href="https://www.jstor.org/stable/pdf/2786426.pdf">ignored, unwanted and unworthy</a>, with the same result. </p>
<p>With the Goldilocks zone being different for different people, retailers are turning to technology to help get the attention levels right. </p>
<p>For example, Australia’s largest swimwear label, Seafolly, is trying out an <a href="http://www.ragtrader.com.au/news/seafolly-has-launched-a-magic-mirror">interactive mirror</a> in the fitting room of its Bondi Junction store in Sydney.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/250180/original/file-20181212-76974-17a4act.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/250180/original/file-20181212-76974-17a4act.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/250180/original/file-20181212-76974-17a4act.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/250180/original/file-20181212-76974-17a4act.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/250180/original/file-20181212-76974-17a4act.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/250180/original/file-20181212-76974-17a4act.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/250180/original/file-20181212-76974-17a4act.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The interactive mirror in Seafolly’s Bondi Junction store.</span>
<span class="attribution"><span class="source">Seafolly</span></span>
</figcaption>
</figure>
<p>It allows the customer to message staff directly from the changing room for assistance only if, and when, they decide they need it.</p>
<h2>You’re so special</h2>
<p>Shopping online is highly convenient but it doesn’t necessarily make you feel special.</p>
<p>Some bricks-and-mortar retailers are positioning themselves at the premium end of the shopping market by appealing to the human desire to be pampered. It makes sense to invest in the “VIP experience”, because now every customer they get is very important.</p>
<p>Creating the VIP experience extends from personal greetings to champagne and caviar bars. </p>
<p>Department store <a href="https://www.smh.com.au/lifestyle/fashion/department-stores-are-promising-better-service-but-is-it-too-late-20181003-p507i8.html">David Jones</a> has embraced this trend as part of the A$200 million redevelopment of its Sydney premises. </p>
<p>Its revamped shoe floor – the largest shoe store in Australia – includes “shoe concierges” to greet and guide you and specialist shoe fitters recruited from around the world. And yes, there’s also a champagne bar. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/247180/original/file-20181126-149317-1nzb9wa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/247180/original/file-20181126-149317-1nzb9wa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=399&fit=crop&dpr=1 600w, https://images.theconversation.com/files/247180/original/file-20181126-149317-1nzb9wa.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=399&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/247180/original/file-20181126-149317-1nzb9wa.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=399&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/247180/original/file-20181126-149317-1nzb9wa.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=501&fit=crop&dpr=1 754w, https://images.theconversation.com/files/247180/original/file-20181126-149317-1nzb9wa.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=501&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/247180/original/file-20181126-149317-1nzb9wa.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=501&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">David Jones’ new ‘Level 7’ shoe floor in Sydney.</span>
<span class="attribution"><span class="source">David Jones media release</span></span>
</figcaption>
</figure>
<p>Such experiences meet the desire for <a href="https://www.forbes.com/sites/njgoldston/2017/12/29/what-you-need-to-know-about-luxury-consumer-trends-for-2018/#2d19680921eb">a “luxe” experience</a> without the luxury price tag. Research has found that even the simple act of just being welcomed at the entrance of a store can influence how your <a href="https://www.sciencedirect.com/science/article/abs/pii/S0148296316304295">perceive service quality</a> as well as <a href="https://www.researchgate.net/publication/324159812_The_Social_Servicescape_A_Multidimensional_Operationalization">customer satisfaction and store loyalty</a>. </p>
<p>Whether such strategies can save bricks-and-mortar stores remains to be seen. </p>
<p>In the meantime, champagne anyone?</p><img src="https://counter.theconversation.com/content/107506/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Eloise Zoppos does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Traditional retailers want to lure you back with a shopping experience that online stores just can’t provide.Eloise Zoppos, Senior Research Consultant, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1066732018-11-20T21:24:26Z2018-11-20T21:24:26ZWhy do Black Friday shoppers throw punches over bargains? A marketing expert explains ‘psychological ownership’<figure><img src="https://images.theconversation.com/files/246567/original/file-20181120-161630-gxgf1y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Don't let go.</span> <span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Holiday-Shopping-Black-Friday/6931136400c54312bcd74fbf012ab55b/174/0">AP Photo/Jeff Chiu</a></span></figcaption></figure><p>Black Friday, the most celebrated shopping day of the year, <a href="https://www.nytimes.com/2017/11/21/well/mind/the-psychology-of-the-black-friday-shopping-mob.html">abounds</a> with tales of fistfights over discounted televisions or even stampedes as consumers rush to get that low-priced sweater they saw in an ad. </p>
<p>Many people chalk it up to <a href="https://theconversation.com/retail-rage-why-black-friday-leads-shoppers-to-behave-badly-34041">bad behavior</a>. But <a href="https://www.nyit.edu/bio/ckirk01">marketers like me</a> have a term to describe one feeling that contributes to it: psychological ownership. </p>
<p>Have you ever felt as if another driver stole your parking spot? Or were supremely miffed when someone else nabbed the last red sweater that you had your eye on? And isn’t it irritating when someone else receives credit for your idea? If so, you experienced psychological ownership. </p>
<p>In other words, we often take ownership over a thing or service in our minds before we actually give up the cash that makes it legally ours. And retailers use this psychological technique to get us to buy more of their stuff – or <a href="https://doi.org/10.1086/598614">spend more</a>. It also makes us <a href="https://www.sciencedirect.com/science/article/pii/S2214804315000737">more likely to brag about our purchases</a>, valuable word-of-mouth advertising for those brands.</p>
<p>While <a href="https://doi.org/10.1007/978-3-319-77158-8_1">the concept itself is well-known</a>, there’s been little research on how people actually react when someone seems to infringe on their <a href="https://doi.org/10.1007/978-3-319-70247-6_8">psychological ownership</a>. My colleagues Joann Peck and Scott Swain and I <a href="https://doi.org/10.1093/jcr/ucx111">conducted</a> several studies to find out. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/246501/original/file-20181120-161630-1c55dpg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/246501/original/file-20181120-161630-1c55dpg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=365&fit=crop&dpr=1 600w, https://images.theconversation.com/files/246501/original/file-20181120-161630-1c55dpg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=365&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/246501/original/file-20181120-161630-1c55dpg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=365&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/246501/original/file-20181120-161630-1c55dpg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=458&fit=crop&dpr=1 754w, https://images.theconversation.com/files/246501/original/file-20181120-161630-1c55dpg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=458&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/246501/original/file-20181120-161630-1c55dpg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=458&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">All it takes is a touch to elicit psychological ownership of a product.</span>
<span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Holiday-Shopping-Black-Friday/681df026890244769854e1d71d10b17c/25/0">AP Photo/Elaine Thompson</a></span>
</figcaption>
</figure>
<h2>That feeling that something is yours</h2>
<p>Psychological ownership is an <a href="https://hbr.org/2018/09/how-customers-come-to-think-of-a-product-as-an-extension-of-themselves">important concept in marketing</a>. Sellers are motivated to elicit it because <a href="http://journals.ama.org/doi/10.1509/jmkg.74.1.65">having it makes you want to buy</a> their goods.</p>
<p>An example of this is potato chip maker Lay’s <a href="https://www.fastcompany.com/1681333/how-lays-is-tapping-its-audience-for-its-next-big-chip-idea">“Do Me a Flavor” contest</a>, which began in 2008 and invited customers to suggest and vote on new chip flavors. By tickling customers’ sense of ownership in the product and the brand, it was a remarkable success in markets around the world. </p>
<p>But it doesn’t have to be a major campaign. A simple ad or invitation to touch can have the same impact.</p>
<p>There are three factors that foster psychological ownership:</p>
<ol>
<li><p>If you can touch or control something or even imagine doing so. An example is putting something in your shopping cart – whether physical or virtual <a href="https://link.springer.com/chapter/10.1007/978-3-319-77158-8_5">online</a>.</p></li>
<li><p>If you have customized something or invested your efforts in designing it. When the server brings the food to your table and places your dish in front of someone else, you’re quick to say, “That’s mine.”</p></li>
<li><p>Intimate knowledge. If you grew up with a product, have always used it or have a special or unique way of using it, the odds are good you feel psychological ownership over it. </p></li>
</ol>
<p>Furthermore, you can feel psychological ownership over pretty much anything that doesn’t legally belong to you, from the last chocolate truffle in a display case to the dream home you found on Zillow, and even intangible things like ideas.</p>
<h2>Psychological ownership in action</h2>
<p>To find out how people react when their psychologically owned property is threatened, <a href="https://doi.org/10.1093/jcr/ucx111">my colleagues and I conducted a series of experiments</a>. Each was designed to elicit or manipulate feelings of ownership in consumers and then have other people communicate, or signal, psychological ownership of the same product.</p>
<p>In the first one, 58 college students participated in a simulated dining study in our lab. At one point, they each poured themselves a cup of coffee from a bar and customized it with condiments like sugar, frothed milk and syrup, which helped create strong feelings of ownership of the coffee.</p>
<p>Later, after serving participants a piece of cake at their table, a waiter asked, “Is everything OK?” The waiter also, in half the cases, moved their coffee cup for no apparent reason. </p>
<p>After the “bill” came, we found that participants whose coffee cup was moved tipped the server 25 percent less. In a subsequent survey, these participants reported that they felt the server had infringed on their territory and said they’d be less likely to return to such a restaurant. </p>
<p>A second experiment extended this territorial feeling to something less tangible: an artistic design. As part of volunteer work for a local nonprofit, 162 university students decorated folders for children’s educational materials. They either copied a design onto the folder – which elicits low psychological ownership – or created their own design – leading to high psychological ownership. After they finished, a staff member walked up to half the participants and said, “That looks like my design!”</p>
<p>Later, as the staff member left the room, she “accidentally” dropped a pen, supposedly without noticing. We found that participants who designed their own folder and were told by the worker that it looked like hers were 66 percent less likely to pick up the pen and return it. </p>
<p>A later survey showed that these participants indeed felt that the staff member infringed on what they considered theirs. As a result, they were also less likely to donate to the nonprofit or volunteer again. </p>
<p>Interestingly, they reported they would be more likely to post a selfie with their folder on social media – in other words, they tried to defend their psychological ownership by communicating their own claim to ownership.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/246506/original/file-20181120-161615-1y8bbp1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/246506/original/file-20181120-161615-1y8bbp1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/246506/original/file-20181120-161615-1y8bbp1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/246506/original/file-20181120-161615-1y8bbp1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/246506/original/file-20181120-161615-1y8bbp1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/246506/original/file-20181120-161615-1y8bbp1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/246506/original/file-20181120-161615-1y8bbp1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Hands off!</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/waiter-apron-gives-woman-cup-coffee-1228556992?src=mXNWGEPB0ZFzOlnCsoWr4w-1-99">ShotPrime Studio/Shutterstock.com</a></span>
</figcaption>
</figure>
<h2>Limits of psychological ownership</h2>
<p>Other similar experiments showed there are some limits to psychological ownership and who’s more susceptible. </p>
<p>One such experiment, conducted online, involved asking participants to imagine they were queuing to buy a comfy sweater for an upcoming social event and told to close their eyes and picture themselves wearing it. They were then told, at random, to imagine either that another customer reached out and touched the sweater or asked permission to do so. We found that asking first reduced the participant’s feeling of infringement and tendency to respond territorially. </p>
<p>In a separate experiment, we wanted to see if more narcissistic people were more likely to respond territorially when someone infringed on their “property,” in this case a delicious-looking pizza. We elicited psychological ownership of the pizza by asking participants to imagine they had traveled a long distance just to get it. </p>
<p>As they were standing in front of the pizza stand, a stranger came up and said either “I am not familiar with this pizza” or “I know this pizza well. I call this pizza ‘Antonio’” – the latter phrase meant to signal ownership. At the end of the survey, we measured narcissism using a <a href="https://www.psytoolkit.org/survey-library/narcism-npi16.html">common personality scale</a>.</p>
<p>We found that customers who scored high on narcissism expected others to be more aware of their feelings of ownership. Thus, they were more likely to feel infringed upon and respond territorially to the stranger who signaled ownership.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/246503/original/file-20181120-161624-1f3939s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/246503/original/file-20181120-161624-1f3939s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/246503/original/file-20181120-161624-1f3939s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/246503/original/file-20181120-161624-1f3939s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/246503/original/file-20181120-161624-1f3939s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/246503/original/file-20181120-161624-1f3939s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/246503/original/file-20181120-161624-1f3939s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Scarcity of a product can make it more likely to create conflict over psychological ownership.</span>
<span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Walmart-s-Thanksgiving-Shopping-Events/cbb01c80bb304f9b8d6edfef26c7e664/48/0">Gunnar Rathbun/Invision for Walmart/AP Images</a></span>
</figcaption>
</figure>
<h2>How to cope</h2>
<p>Together, these studies demonstrate we really don’t like it when others show signs of ownership of something we feel is “ours,” particularly if we believe they should know of our prior claim. Furthermore, we might retaliate when given a chance.</p>
<p>Consumer responses when this happens can vary from simply abandoning the location to talking badly about the business or person involved. In other words, companies that play on this feeling of psychological ownership to spur sales should bear in mind that there’s a cost as well, particularly when a product or its low price is scarce, such as on Black Friday. </p>
<p>So as you hunt for bargains in the coming weeks, bear in mind that psychological ownership sets in long before a cashier puts your stuff – or a fellow shopper’s – in a bag. My best advice is be polite. There’s usually enough for everyone.</p><img src="https://counter.theconversation.com/content/106673/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Colleen P. Kirk does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Psychological ownership is that feeling that someone stole ‘your’ parking spot or nabbed the last sweater you had your eye on. We have a tendency to get territorial when we feel it’s been violated.Colleen P. Kirk, Assistant Professor of Marketing, New York Institute of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1057022018-11-16T19:08:48Z2018-11-16T19:08:48ZThe psychological differences between those who love and those who loathe Black Friday shopping<figure><img src="https://images.theconversation.com/files/245841/original/file-20181115-194494-1rvzyiw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Shoppers, start your engines ...</span> <span class="attribution"><a class="source" href="https://unsplash.com/photos/PP6I-8d0jg0">Ron Dauphin/Unsplash</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>If the thought of taking part in the annual ritual of Black Friday gives you cold chills rather than a rush of excitement, you’re not alone. For every avid bargain hunter who plans for the day as if training for a marathon, there’s someone else who stays home, secure in the knowledge that no one will trample them, shove them or invade their personal space just to get this season’s hottest deals.</p>
<p>It’s not just a lack of appreciation for bargains that drives this disconnect. Psychology research indicates that several factors determine which side of the shop-‘til-you-drop divide you land on. Some people just aren’t wired to enjoy the more social aspects of shopping.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/246030/original/file-20181116-194491-1vopeza.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/246030/original/file-20181116-194491-1vopeza.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/246030/original/file-20181116-194491-1vopeza.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=427&fit=crop&dpr=1 600w, https://images.theconversation.com/files/246030/original/file-20181116-194491-1vopeza.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=427&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/246030/original/file-20181116-194491-1vopeza.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=427&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/246030/original/file-20181116-194491-1vopeza.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=537&fit=crop&dpr=1 754w, https://images.theconversation.com/files/246030/original/file-20181116-194491-1vopeza.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=537&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/246030/original/file-20181116-194491-1vopeza.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=537&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Have you been looking forward to holiday shopping since the gifts were unwrapped last year?</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/new-york-november-2017-sign-macys-757918777">Joe Tabacca/Shutterstock.com</a></span>
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</figure>
<h2>What you prioritize plays in</h2>
<p>Psychology researchers divide the world into two groups: those who tend to focus more on <a href="https://doi.org/10.1007/s11031-006-9028-7">achieving tasks versus those who focus more on making connections</a> with others. This idea is encapsulated in what’s known as goal theory.</p>
<p>Task-oriented shoppers typically focus on finding the things they need as quickly as possible and with the least amount of effort. Socially oriented shoppers, on the other hand, enjoy the presence of others while they shop.</p>
<p><a href="http://dx.doi.org/10.1037/11144-000">There is experimental evidence</a> that task-oriented shoppers are more likely to find even a handful of other shoppers nearby to be a crowd and an obstacle to a successful shopping trip. The same research suggests that social shoppers are actually energized by the presence of other consumers. These folks enjoy the experience more when there are others nearby, even if they don’t directly interact.</p>
<p>Another aspect of this shopping divide comes down to individual expectations regarding personal space. Psychology researchers talk about this preference in what they call <a href="http://dx.doi.org/10.1086/218177">field theory</a>. If you’ve ever been bothered by a “close-talker” who leans in too close or touches your arm as they tell you a story, then you are likely someone who requires a little more personal space than that storyteller does.</p>
<p>The presence of other shoppers in a store is psychologically arousing for people on both ends of the personal space spectrum, but in different ways. People who don’t require much personal space feel excitement when others are around. That same arousal feels instead like stress to the person who requires a little more space to call their own. And <a href="https://doi.org/10.1007/s11747-016-0514-5">stress is something everyone tries to minimize</a>. Almost everything we do as consumers is an attempt to reduce stress – from eating when we feel hungry to buying that bigger TV you just have to have.</p>
<p>Taken together, these <a href="https://doi.org/10.1007/s11747-011-0284-z">two theories explain a lot</a> about the way you feel about Black Friday-style shopping.</p>
<h2>Survival tips for the reluctant shopper</h2>
<p>The five-day period that starts on Thanksgiving Day and ends on Cyber Monday will bring about two-thirds of Americans out to shop. <a href="https://www.thebalance.com/what-is-black-friday-3305710">Black Friday remains the busiest shopping day of the year</a>, with roughly half Americans leaving their homes to take part in this consumer ritual.</p>
<p>If you read those statistics and think, “Bring it on!” then you are likely a social shopper who enjoys the thrill of the hunt and finds crowds energizing. </p>
<p>If instead, you react to those numbers by booking a root canal so you don’t have to hit the stores, then you’re more likely a task-oriented shopper who prefers to get in and get out with the items you need. You are also more likely to be annoyed by the physical closeness of strangers that is a hallmark of competitive shopping. But don’t call the dentist just yet – there may still be ways for you to comfortably participate in Black Friday and its bargains.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/246029/original/file-20181116-194506-1ttsv3v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/246029/original/file-20181116-194506-1ttsv3v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/246029/original/file-20181116-194506-1ttsv3v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/246029/original/file-20181116-194506-1ttsv3v.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/246029/original/file-20181116-194506-1ttsv3v.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/246029/original/file-20181116-194506-1ttsv3v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/246029/original/file-20181116-194506-1ttsv3v.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/246029/original/file-20181116-194506-1ttsv3v.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">A plan puts a reluctant shopper more in control.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/christmas-letter-writing-on-paper-wooden-518922496">Victoria43/Shutterstock.com</a></span>
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<p>First, make a list of everyone for whom you would like to find a gift. Then do your research on the sales that might help you achieve your goals. Both of those tasks should appeal to the need for organization that task-oriented shoppers tend to exhibit.</p>
<p>Next, recognize that the majority of Black Friday devotees are going for the big bargains first, and that means that they’ll head for the big box and department stores. Instead make your first stops the local boutiques and smaller shops that won’t get as much traffic early in the day.</p>
<p>By the time you’ve taken care of those items on your list, the larger stores will begin to clear out and you can head in. Try avoiding malls and go where you can park close to the store you actually want to visit. Doing this will allow you to feel some degree of control and alleviate some of the stress you feel when you don’t have direction.</p>
<p>By the end of the day, you can check some things off your shopping list and feel good about the bargains you were able to find, all while maintaining your sanity.</p>
<p>And if you’ve read this far merely to better understand why your significant other doesn’t want to join you on this most special of consumer holidays, just acknowledge your psychological differences. You go ahead and tackle Black Friday with the enthusiasm of a natural-born social shopper. Don’t worry about those who resist – they can always snag Cyber Monday bargains from the comfort of home.</p><img src="https://counter.theconversation.com/content/105702/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michael Breazeale does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Some can’t wait to hit the ground running while others would rather endure a root canal. Certain characteristics help explain who is in which group.Michael Breazeale, Associate Professor of Marketing, Mississippi State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1054762018-11-16T15:48:51Z2018-11-16T15:48:51ZWhy is this line so long?<figure><img src="https://images.theconversation.com/files/245982/original/file-20181116-194491-np2wnk.jpg?ixlib=rb-1.1.0&rect=594%2C172%2C4418%2C3065&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A long line might actually be the quickest line.</span> <span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Black-Friday/8374145f19d0430fa4f9c8c34b345c2b/7/0">AP Photo/Michael Dwyer</a></span></figcaption></figure><p>Warning: After reading this article, you will never again stand in a line without thinking about how to make your wait time shorter. And as an expert in operations management, I’m here to spread the word that sometimes a longer line may actually be a good thing.</p>
<p>My family is used to my preaching. On a recent shopping excursion, we overheard an impatient customer blurt out, “Why is this line so long?” To which my daughter responded, with a glare in my direction, “Don’t even consider telling him about queuing theory.”</p>
<p>It did take considerable restraint not to answer his question. But I was just happy realizing that my daughter knows the difference between single-server and multiple-server queuing models.</p>
<p><a href="https://doi.org/10.1007/978-0-387-73699-0_5">Queuing theory</a> is the mathematical science behind why the line is so long. A queue is just another word to describe a line of things waiting their turn – whether it’s people waiting to get a free ice cream cone or a new car moving through the assembly line.</p>
<p>Prepare to arm yourself with some queuing theory basics to help you brave the throngs while holiday shopping.</p>
<h2>When the line reaches around the block</h2>
<p>Of course there can be many reasons for a long line.</p>
<p>Maybe a retail manager is spiteful and wants to see every customer get angry. But that’s not a good business strategy and probably an unlikely reason for a long line.</p>
<p>Another possibility is that the manager puts more value on her costs to provide a service – in this case, staffing adequately to ring up your purchase speedily – than on your time waiting for that service. This scenario is a more likely reason, but still not a good long-term business strategy. Even though it’s easy to assume some version of this is at the root of your line-waiting woes, it’s typically not the reason.</p>
<p>Or perhaps you’re waiting for a service that is highly sought after by many people. In this case, the line might indicate just how smart you are to be waiting in it for your share of whatever’s at the other end. This sounds promising, but is rarely the case. It’s not often you camp out for front-row tickets or to be the first to get some new gadget.</p>
<p>The most likely scenario is that you’re misunderstanding how the line is designed. Seeing a line snake back and forth across the width of a store three times can be deceiving as to how long you may actually have to wait. In what may appear to be a very long line, the service rate can be so good that the line moves very quickly.</p>
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<a href="https://images.theconversation.com/files/245984/original/file-20181116-194519-gzqg5w.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/245984/original/file-20181116-194519-gzqg5w.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/245984/original/file-20181116-194519-gzqg5w.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=382&fit=crop&dpr=1 600w, https://images.theconversation.com/files/245984/original/file-20181116-194519-gzqg5w.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=382&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/245984/original/file-20181116-194519-gzqg5w.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=382&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/245984/original/file-20181116-194519-gzqg5w.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=480&fit=crop&dpr=1 754w, https://images.theconversation.com/files/245984/original/file-20181116-194519-gzqg5w.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=480&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/245984/original/file-20181116-194519-gzqg5w.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=480&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">One line spreads the risk of slowdowns out over the whole group.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/jacksonville-floridafebruary-5-2018-travelers-waiting-1029446116">James R. Martin/Shutterstock.com</a></span>
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<h2>Getting to the math of the matter</h2>
<p>This concept of system design rests on a mathematical theorem called Little’s Law. It’s named after its creator, John Dutton Conant Little, an MIT professor who specializes in operations research.</p>
<p>Little’s Law provides the math that a researcher like me can use to check out different system designs employed in various instances of waiting lines. It states that over time, the number of customers in a system is equal to their rate of arrival multiplied by the average time they spend in that system.</p>
<p>Some lines have service times that vary – like at the post office. Some have service times that are fixed – like a mechanized car wash. Unique formulas apply to each scenario to help operations managers design the best system for their business.</p>
<p>With the Little’s Law equation and my own stopwatch, I’ve proven over and over again that a longer line may actually be a better line. Let me explain.</p>
<p>Imagine a situation where you have many shorter lines, each being served by its own cashier. Call it the grocery store model, or the single-server model, more officially. You can get out of there quickly only if you correctly guess which line will move the quickest. And if you’re anything like me, you’re bound to bet on the wrong line.</p>
<p>But a single, longer line, being served by multiple employees – think banking, the motor vehicle department or airport security – is actually faster for everyone, even though it looks much longer than what you’re used to seeing in other systems.</p>
<p>The main reason is that if there’s a price check, a return or some other very slow customer, that delay affects only that cashier directly dealing with the situation. The rest of the line continues to move along. The delay at one cashier gets distributed across the entire system in the multiple-server model, instead of completely stalling out just that one line, as in the single-server model we see in the grocery stores.</p>
<p>So even if you see a very long line, as long as it’s the only option, you should be pleased. You don’t have to guess which line to get in. Little’s Law means a single long line is the fairest way to get everyone out of there as fast as possible.</p><img src="https://counter.theconversation.com/content/105476/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Joost Vles does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Don’t despair if, once you’ve gathered your shopping items, you’re met by a single line that looks a mile long. Queuing theory suggests this is likely the fastest way to get you rung up and moving on.Joost Vles, Adjunct Instructor of Management, University at BuffaloLicensed as Creative Commons – attribution, no derivatives.