Enough is Enough

Paco Underhill recently told PBS’s “News Hour” that “we cannot sustain the juggernaut of consumption that we have had here in the United States over the past decade.”
“Our houses are too big,” he said. “Our cars are too big. Our debts are too big. Our bellies are too big. Now it's time to go on a diet.”

C’mon, Paco, I thought you were on our side! Retailers don’t thrive when consumption stops.

But, of course, consumption isn’t stopping. It’s just re-focusing. People are becoming more cautious and selective. They’ve cut back on buying what they’d like and are concentrating instead on what they need. And that puts pressure on retail designers to find that right balance between aspirational elegance and affordable simplicity.

Who’s doing it best these days? The dollar stores. But not the dank, crowded stores you might remember. There’s a new generation of Family Dollars, Dollar Generals and Dollar Trees that are cleaner, less-cluttered – and even selling food. The approach seems to be one Walmart has also grabbed onto: We can lure shoppers with low prices, but we can only keep them with an inviting, approachable store.

Family Dollar says it plans to open 200 stores this year, some of those in shopping centers that wouldn’t have looked at them before. Landlords with a lot of empty spaces to fill are hungry for any healthy retailers who can pay the rent. And right now, these guys have the cash to pay the rent.

Dollar General saw same-store sales increase 9.4 percent in its most recent quarter. Family Dollar was up 6.4 percent, Dollar Tree was up 2.2 percent. It’s nice to hear the word “up” used when talking about retailers – and not preceded by the prefix “belly.”