By Ben Rabidoux - Tuesday, September 11, 2012 - 0 Comments
August resale and housing starts figures are now out for all three of Canada’s biggest cities, and it’s not a pretty picture.
When the August resale data for Vancouver came out last week, the headline news was that sales had fallen to their second lowest level for the month since 1998. Sales were 30 per cent below what they were in August of last year and 40 per cent lower than the August average of the past 10 years.
But the numbers are even worse than the headline reveals. On paper, August 2008 holds the record as the weakest month of the past 15 years. However, it had two fewer week days than August 2012. If calendar differences are taken into account, last month represents the lowest sales volume of any August in 15 years.
By Jason Kirby - Thursday, November 25, 2010 at 11:40 AM - 0 Comments
Retailers are experimenting with a new way to earn outsized profits
Megamalls, superstores, big box—for years retail has been dominated by the mantra that bigger is better. But some retailers are experimenting with a new way to earn outsized profits: smaller stores. Several U.S. chains have begun shrinking the floor space and amount of inventory in their stores, and shoppers appear to love it. In one case, the clothing chain Anchor Blue has put in walls to shrink some of its stores by half. The result has been a 23 per cent increase in sales, despite fewer clothing options. Meanwhile, Bloomingdales’ new store in Santa Monica is just one-eighth the size of its Manhattan flagship location.
There are two benefits to the strategy, Paco Underhill, a retail consultant, told the New York Times. Smaller stores keep costs down by reducing rents and culling inventory levels. More importantly, given fewer choices, customers actually tend to buy more. “We have reached the apogee of the big box,” says Underhill.