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Recession forces thinking outside the big box

It's a retail jungle out there.

In one of the most hilarious – and anti-Darwinian – lawsuits of 2008, the owner of an aging Carlsbad shopping center has sued the city of Oceanside for allegedly rushing its approval of a competing mall.

The reason for this fear of sprawl almost five miles away?

Air and water and traffic! Oh, my!

Westfield Group, owner of Plaza Camino Real and other nice malls near you, is claiming that the city rushed to approve a flawed environmental review for the 950,000-square-foot Pavilion, proposed near a former drive-in theater off state Route 76.

Yes, the environmentally sensitive overseers of Westfield Group have adopted the legal strategy of NIMBYs battling landfills, power plants and tract housing.

As touching as this concern for the ecological integrity of the San Luis Rey River area is, Westfield's obvious ruse to block competition makes a certain amount of sense, given what appears to be the dawning of a new age of shopping withdrawal.

“I'm really struggling with the whole concept that any  more property needs to be developed for retail use,” writes Don Jones of Vista.

Jones, a frequent correspondent, is a longtime student of retailing who once taught the subject at San Diego State University.

He continues: “Virtually all the commentary I read in the business press, and especially from those who claim to understand retailing, say that the nation is over-stored, and has been for a long time. Too much retail space, too many shopping centers, too many retail malls. I agree with them.”

And so do I.

Ever since the passage of Proposition 13 in 1978, property-tax-starved cities have competed for sales tax,which means that no city ever meets a retail outlet it doesn't want to sleep with.

 

North County's state Route 78 is a prime (but not uncommon) example of “the fiscalization of land use,” to use a wonky urban planner's phrase.

For the past 30 years, Oceanside, Carlsbad, Vista, San Marcos and Escondido have scratched and clawed to increase sales taxes, a more lucrative revenue stream than industrial developments or housing.

Cities cut whatever corners – and checks – they can to attract the retail honey pots.

In a utopian world, cities would let the free market decide how shopping should be spaced. To that end, smart urban planners – and some forward-leaning politicians – have suggested regional sales tax sharing to promote a sensible commercial balance to create more room for housing and open space.

In our dystopian world, however, cities engage in a retail arms race, creating a big-box nightmare, veritable Grand Canyons of cookie-cutter commerce far away from crazy-quilt downtowns, the diverse, walkable, unpredictable places in which the masses, unyoked from their cars, yearn to breathe – and buy – free.

The artificially supported retail markets far exceed normal human desires. Only gargantuan appetites, sustained by credit-card debt, can service a glut of goods arrayed in gentrified warehouses.

“About 15 years ago, there was a study that revealed that since 1945, the amount of retail space per capita had grown between four and five times,” Jones writes. “And that was at the beginning of the big-box retailing, which means that it is far greater now.”

You could say that.

According to Shopping Centers Today, there's 2.5 square feet of retail space per person in the United Kingdom. In Italy, it's about 1 square foot.

In the United States, we roam around in 20.2 square feet, eight times more than the UK.

It's one way to measure the wretchedness of our retail excess.

Maybe help is on the way. (You sure can't find it in the big boxes when you want it.)

 

The collapse of consumer confidence, which shows no signs of turning around for years, will force many large chains to contract or die.

At best, they'll stay on life support by gouging helpless landlords and cities desperate to keep the sales tax stream from slowing to a trickle.

Last week, I peered through the windows of the abandoned Mervyns and Circuit City in Escondido. Nothing but shelving and the ghosts of Christmases past inside.

“Around the U.S., developers are looking at many malls that now appear surplus and are getting plans together to redevelop them as residential parks tied to some reduced shopping areas,” Jones writes.

As the American way of shopping evolves, there's money to be made in converting the tilt-up cash registers to creative human spaces that lead away from the freeway and back to downtown.

Future generations may thank us for enduring a recession that, while forcing us to deal with a debt addiction, forced us to think outside the big box.

At the least, it's an idea worth shopping around.


(www.signonsandiego.com)
 
Smart Ways to Stretch Your Dollars
Scottsdale, Arizona - For many of us, the New Year will be full of resolutions. Most people resolve to get in shape and eat right, but especially in these times, it’s wise to make financial resolutions and find ways to spend smart and save in the upcoming year.

Jennifer Openshaw, successful author, radio host and financial expert, offers the following smart tips to stretch your dollars in 2009:

Change the Channels - We all have services we no longer need. Do you really watch all your cable channels? Have you got hundreds of unused cell phone minutes you’re still paying for? A second home phone line you never use? Gym membership you don’t want? They all made sense at one time, but what about now? Take inventory. Check your bills and credit card statements. Find the suspects, and then ask yourself, "Do I really need this?"

Make It Last Longer! Clean It. Fix It. Keep It. - Simply put, it pays to make things last longer. Cars, furniture, computers or the deck on the back of your house -- a little care can pay big rewards. So dedicate time (and maybe a little money) to really cleaning up that old car. “My friend has saved megabucks by keeping his Ford Explorer in good shape for 17 years. Some folks buy three new cars in that amount of time,” says Openshaw.

Used Doesn’t Mean Abused - Quite often, “used” goods will work just as well as new ones -- and cost a fraction of the price. "Used" also includes open box and returned items in stores. “I just bought a lawnmower. New $439, I got it for $129 -- used twice maybe -- and runs perfect!” says Openshaw. Learning to buy used if you don't already can also be a great way to save on items you need. By becoming a member of an online shopping portal or community of sellers like eBay or Craigslist, you’ll open up a two-way road of buying and selling -- and saving along the way.

Save While You Spend - Use coupons, look for sales or sign up for a savings program like Keep the Change from Bank of America that helps you save money while you spend (BankofAmerica.com). Keep the Change automatically rounds up check card purchases to the nearest dollar and transfers the difference from your checking account to your savings account. The savings really help as you kick off the New Year. Plus, with Keep the Change, you’ll get a match.

Do-It-Yourself - By taking over your own gardening, car washing, house cleaning or even a little home improvement, you'll not only save money, but get some great exercise while expanding your pride of ownership. And it isn't just grunt work -- instead of the weekly trip to a restaurant, try a fancy do-it-yourself meal experience. You can turn DIY into stay-at-home fun, especially if you get the family involved.

Take a Calculated Risk - Have you ever thought about raising deductibles on your property, auto, health or other insurances? That extra few dollars of coverage can really add up. “I have a friend who just raised the out-of-pocket family maximum on a purchased high-deductible policy from $4,800 to $8,000 and saved $2,844 a year in premiums by taking on $3,200 more in risk,” says Openshaw.
 
Grocery Shopping For Big Savings | Tips From Your Payday Loan Source

Grocery Shopping for Big Savings Part I

When it comes to your personal finances, identifying where you can cut costs on your monthly bills can save you a lot of extra money as well as keep you from having to borrow a payday loan at the end of the month for the lack thereof.

Besides your home mortgage, there are few monthly expenses that will exceed that of the average family’s grocery bill. Their are a few strategies you can implement here to help you save the extra money which we know you can find a use for elsewhere.

Shopping For Savings

Shopping for savings is easy but requires a little effort and time for preparation but will pay big dividends for those who chose to do so. Here is a quick list of tips to get you started saving money on your grocery bill today.

Buying In Bulk

Buying in bulk is a common strategy used for saving  extra cash in just about every category of consumer goods. Rarely however, do we implement the same strategy with our grocery bill. Most families pay a visit to the grocery store at least twice a week finding it easier to just shop for a few days at a time.

By sitting down and planning out meals a month in advance, you can go to your local wholesale depot and buy everything you need for the entire month with the exception of milk, on one grocery bill.

Planning ahead allows you to purchase larger containers and quantities of product which provides you savings benefits when shopping at many wholesale grocery suppliers.

When buying in bulk and shopping once a month, you also have the added benefit of saving the extra money on the gas and time it takes to go back and forth to and from the store each week.

Finding Extra Food Storage

Buying in bulk may have it’s difficulties when it comes to food storage but believe it or not, you will find it much easier, more cost effective and well worth your while to clear out and designate an extra closet for pantry space if you have to.

Much depends on how you plan your meals for the month. You will want to be conscientious when it comes to refrigerated goods as you may be limited on cold storage place for vegetables, fruits, cheese and eggs unless you have an extra fridge in your basement or garage.

Freezer space may also be a factor so investing in a chest freezer may be well worth your while in the long run and will allow you to take advantage of periodic sales on meat and other freezer goods as they arise.

Comparison Shopping With Weekly Circulars

Like payday loan lenders, it pays to shop around for different providers.  Of all the wholesale food suppliers in your area, Costco is usually the most popular but often times you may find better deals elsewhere so be sure to do a little comparison shopping before settling on you place of choice. It may pay to shop at two or three places depending on the deals that you may find in your weekly circulars or sales adds that are delivered to your door on a weekly basis. If don’t get them delivered to your door they will be freely available at your local grocery store. Invest the time to compare prices between the different retail chains and take advantage of the deals that you find before you set out shopping on the big day.

Planning Ahead Saves On Impulse Buying

By planning ahead and creating a list you also save extra cash by avoiding impulse buying. Often time we go to the store hungry or without an idea of what we really need which usually results in buying things we don’t need as well as forgetting the things that we do. Shopping without a plan or without a list results in wasteful spending and extra trips to the store.

The tips above will help get you well on your way to saving money, saving time, and even eating a healthier and more balanced diet depending on the time that you invest into the process.

Stay tuned to the payday loan money blog for part II of Grocery Shopping For Big Savings.

 
Credit card reader sold for home use

A new device that hit store shelves in Regina this week could soon help ease the fears of online shoppers nationwide.

NetSecure Technologies in Regina has developed Smart Swipe, a device that plugs into the USB port of a home computer and scrambles and encrypts the user's credit-card data before it reaches the computer or the Internet.

"You've got card readers for reading digital cards from your camera, but nothing for your credit card--even though, when you walk into a bank or a shopping mart, they all have them attached to their computers," said Daniel McCann, creator of Smart Swipe and president of NetSecure Technologies.

The process of using Smart Swipe is simple. Plug in the device, install the software, shop, check out, then follow the prompts from the Smart Swipe software.

No credit-card data is stored on your computer or on the device, making it usable for multiple people and cards.

Shane Gross, marketing executive with NetSecure, said Smart Swipe also protects users from viruses or spyware they may have on their computers.

"If there is spyware or anything on your computer, that spyware can see what you see on your screen. So if you're typing in your credit-card information, (the spyware) can see that," said Gross. "With the Smart Swipe, your computer doesn't even see your information; it just goes directly to the merchant, so the spyware also cannot see your information."

Smart Swipe costs $89.95 and is currently only available in Regina at several local stores.

The team will eventually distribute through some big-box retailers, and plans are in the works to launch Smart Swipe nationwide later in the spring.

McCann noted many people in the past have attempted to create a credit-card reader for personal computers, but none has succeeded, because manufacturers were unable to make them completely secure, or they were not compatible with online shopping sites.

"The problem is, you can't get anyone to buy or use the product if you can't use it anywhere," said McCann.

"We set out to make a card reader that worked everywhere, but still provided that same level of security that people demand. And that's what we accomplished: our reader works virtually everywhere."

Angela Linton is a frequent online shopper, shopping on eBay, clothing websites and Ticketmaster, and said she doesn't really make an effort to check the security of websites.

"I honestly don't make an effort to check, but I do make sure that I am shopping on sites or with companies that I trust," she said.

According to the most recent data available from Statistics Canada, more than 8.4 million Canadians aged 16 and older made an online purchase in 2007, and 77 per cent of online consumers express concern about online credit-card use.

 
Retailers Keep Cutting Prices
Worried that consumers won't go back to paying full price after the holiday season's deep discounts, some retailers are cutting prices on early spring merchandise as soon as it hits store shelves.

The deals on fresh goods suggest that retail profit margins will remain under pressure in the first half of the year. On Thursday, most chains are expected to report that their same-store sales declined in December, with many likely to cut their profit outlooks.

"This is really the first time that we have seen such quick discounting on new seasonal goods," said Kimberly Greenberger, an analyst at Citigroup Inc.

On Wednesday, discount giant Wal-Mart Stores Inc. said it would cut prices this week on certain exercise machines, athletic apparel and food items, in what it calls the second phase of its Operation Main Street initiative to help consumers save money, this time on health-related products.

Many deals at other stores involve apparel, which has a short shelf life and must be cleared out quickly to make way for new styles. Spring orders were generally placed before the financial crisis exploded in late September, causing consumers to cut spending sharply. As a result, stores may once again have more inventory than they need to meet demand.

By trimming prices selectively on early spring goods now, department stores, specialty apparel chains and teen retailers hope to persuade skittish shoppers to buy new styles, analysts said. They're also trying to capitalize on crowds flocking to winter clearance sales, fearing that traffic will fall off sharply after the sales end.

"It's never a good thing to be marking down merchandise as it hits the floor," but "if you have to move [it], try to move it when traffic is in the mall," said Amy Wilcox Noblin, an analyst at Pali Capital.

Polling suggests retailers are right to think shoppers will balk at paying full price. In an America's Research Group survey of 1,000 consumers the first weekend of 2009, 90% said they would primarily buy advertised specials, up from 84% in early November.

Some of the deals on new styles require shoppers to buy more than one item. Gap Inc.'s Old Navy chain is selling new $12.50 women's lace jersey-knit camis tops online for $6 each if shoppers buy two or more. And AnnTaylor Stores Corp.'s Ann Taylor division will sell two $29 split-neck cotton tops for $35. A Gap spokeswoman said the chain routinely offers new-item specials as part of a strategy to focus on value. At AnnTaylor, a spokeswoman said the strategy is to be "more promotional in order to remain competitive, to provide our clients greater savings, and to continue to keep our inventories clean."

Other clothing makers such as J. Crew Group Inc. and Bebe Stores Inc. are trying to attract shoppers by cutting their opening price points on some spring merchandise before it even hits stores.

"The reset button has been pushed on price," Millard "Mickey" Drexler, J. Crew's chairman, told analysts in a conference call in late November. He cited ballet flats for the company's spring collection, which now start at $98, down from $125.

Bebe, meanwhile, plans more "two for" deals this spring than last year and is also lowering opening price points in categories like rings and tops. Later this month, it plans a campaign called "The New Deal" to promote the new prices. "It's a good practice right now that we show a client that if today all she has is $29, we might have a top for $29," said Chief Executive Greg Scott.

And at Intermix, a chain of boutiques based in New York, Chief Executive Khajak Keledjian said he has negotiated with a few U.S. labels to produce some items at lower prices for spring. A one-shouldered, ruffled dress by Madison Marcus, for example, will carry a $295 price tag this spring at Intermix, compared with $395 for a similar style by the label last spring, he said.

Premium-denim maker Rock & Republic is producing a Recession Collection of jeans priced at $128 to $138, or about $50 less than the label's previous opening price point for denim. President Andrea Bernholtz said the collection, due in stores in March, was created after discussions with retailers on what consumers want now.

"If a starting price point of $180 is going to throw you into a tailspin...we thought we'd take lesser margins on our end and pass that on to the consumer," she said.

(www.online.wsj.com) 

 
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