Tag Archives: shopping

The Best Line

google-search-supermarket-lines

There is a strategy to picking the quickest line (queue) when checking out at the grocery store (supermarket). It includes one several seemingly counter-intuitive recommendation: get behind a shopper with a full cart (trolley). Other recommendations include: go left; pick female cashiers; and, evaluate the customers ahead of you.

From NYT:

You dash into the supermarket for a few necessities. You figure it will be 10 minutes — tops — before you are done and on your way home.

Then you get to the checkout lanes and they are brimming with shoppers. Your plan for a quick exit begins to evaporate.

But all is not lost.

For anyone who has ever had to stand in line (or if you are a New Yorker, you stand on line) at a supermarket, retailer, bank or anywhere else, here are some tips from experts for picking the line that will move the fastest.

Get behind a shopper who has a full cart

That may seem counterintuitive, but data tell a different story, said Dan Meyer, a former high school math teacher who is the chief academic officer at Desmos, where he explores the future of math, technology and learning.

“Every person requires a fixed amount of time to say hello, pay, say goodbye and clear out of the lane,” he said in an email. His research found all of that takes an average of 41 seconds per person and items to be rung up take about three seconds each.

That means getting in line with numerous people who have fewer things can be a poor choice.

Think of it this way: One person with 100 items to be rung up will take an average of almost six minutes to process. If you get in a line with four people who each have 20 items, it will take an average of nearly seven minutes.

Those minutes add up. Richard Larson, a Massachusetts Institute of Technology professor who is considered the foremost expert on queues, estimated that Americans spend 37 billion hours a year waiting in lines.

Go left for faster service

Robert Samuel, founder of Same Ole Line Dudes, a New York-based service that will stand in line for you, said in an email that most people are right-handed and tend to veer to the right.

Look for female cashiers

“This may seem sexist, but I prefer female cashiers,” Mr. Samuel wrote. “In my experience they seem to be the most expedient at register transactions and processing.”

A. J. Marsden, an assistant professor of human services and psychology at Beacon College in Leesburg, Fla., suggested checking to see if a cashier was talkative and commenting on every item being scanned. If so, avoid this line “unless there is no one in that line, in which case, just deal with the chatty cashier,” she said in an email.

Read the entire article here.

Image courtesy of Google Search.

The Curious Psychology of Returns

In a recent post I wrote about the world of reverse logistics, which underlies the multi-billion dollar business of product returns. But while the process of consumer returns runs like a well-oiled, global machine the psychology of returns is confusingly counter-intuitive.

For instance, a lenient return policy leads to more returned products — no surprise there. But, it also causes increased consumer spending, and the increased spending outweighs the cost to the business of processing the increased returns. Also, and rather more curiously, a more lenient return time limit correlates to a reduction in returns, not an increase.From the Washington Post:

January is prime time for returns in the retail industry, the month where shoppers show up in droves to trade in an ill-fitting sweater from grandma or to unload the second and third “Frozen” dolls that showed up under the Christmas tree.

This post-Christmas ritual has always been costly for retailers, comprising a large share of the $284 billion in goods that were returned in 2014.  But now it is arguably becoming more urgent for the industry to think carefully about return policies, as analysts say the rise of online shopping is bringing with it a surge in returns. The return rate for the industry overall is about 8 percent, but analysts say that it is likely significantly higher than that online, since shoppers are purchasing goods without seeing them in person or trying them on.

Against that backdrop, researchers at University of Texas-Dallas sought to get a better handle on how return policies affect shopper behavior and, in turn, whether lenient policies such as offering a lengthy period for returns actually helps or hurts a retailer’s business.

Overall, a lenient return policy did indeed correlate with more returns. But, crucially, it was even more strongly correlated with an increase in purchases. In other words, retailers are generally getting a clear sales benefit from giving customers the assurance of a return.

One surprising finding: More leniency on time limits is associated with a reduction — not an increase — in returns.

This may seem counterintuitive, but researchers say it could have varying explanations. Ryan Freling, who conducted the research alongside Narayan Janakiraman and Holly Syrdal, said that this is perhaps a result of what’s known as “endowment effect.”

“That would say that the longer a customer has a product in their hands, the more attached they feel to it,” Freling said.

Plus, the long time frame creates less urgency around the decision over whether or not to take it back.

Read the entire article here.

Black Friday – OptOutside

rei-optoutside

I’m not a great fan of consumerism. And, I especially detest so-called “Black Friday” — a vulgar and avaricious corporate-America-sponsored-gluttonous-shopping-frenzy that seems to infest the public psyche the day after U.S. Thanksgiving.

So, I was pleasantly surprised to receive a recent email from the REI (Recreational Equipment Inc.) co-op, of which I’m a member, declaring that all 140+ of their stores will be closed on November 27 — Black Friday — in addition to Thanksgiving Day. Now, the cynic in me detects some level of self-serving marketing spin designed to increase REI’s foot traffic when their doors reopen on November 28, and beyond. But, I must say I’m all for #OptOutside — a day for fresh air, muddy boots, enormous vistas and no shopping. I hope other retailers follow suit and consumers opt to spend their time outside rather than spending cash inside.

CEO, Jerry Stritzke, penned the following on the REI website:

REI is closing on Black Friday.

You read that correctly. On November 27, we’ll be closing all 143 of our stores and paying our employees to head outside.

Here’s why we’re doing it.

For 76 years, our co-op has been dedicated to one thing and one thing only: a life outdoors. We believe that being outside makes our lives better. And Black Friday is the perfect time to remind ourselves of this essential truth.

We’re a different kind of company—and while the rest of the world is fighting it out in the aisles, we’ll be spending our day a little differently. We’re choosing to opt outside, and want you to come with us.

So, I encourage you to do the same wherever you may be; keep your fingers off Amazon and your feet away from Walmart’s aisles, and be part of nature’s great outside.

Image: Flatirons, Boulder. Courtesy of the author.

Dinosaurs of Retail

moa

Shopping malls in the United States were in their prime in the 1970s and ’80s. Many had positioned themselves a a bright, clean, utopian alternative to inner-city blight and decay. A quarter of a century on, while the mega-malls may be thriving, the numerous smaller suburban brethren are seeing lower sales. As internet shopping and retailing pervades all reaches of our society many midsize malls are decaying or shutting down completely.  Documentary photographer Seth Lawless captures this fascinating transition in a new book: Black Friday: the Collapse of the American Shopping Mall.

From the Guardian:

It is hard to believe there has ever been any life in this place. Shattered glass crunches under Seph Lawless’s feet as he strides through its dreary corridors. Overhead lights attached to ripped-out electrical wires hang suspended in the stale air and fading wallpaper peels off the walls like dead skin.

Lawless sidesteps debris as he passes from plot to plot in this retail graveyard called Rolling Acres Mall in Akron, Ohio. The shopping centre closed in 2008, and its largest retailers, which had tried to make it as standalone stores, emptied out by the end of last year. When Lawless stops to overlook a two-storey opening near the mall’s once-bustling core, only an occasional drop of water, dribbling through missing ceiling tiles, breaks the silence.

“You came, you shopped, you dressed nice – you went to the mall. That’s what people did,” says Lawless, a pseudonymous photographer who grew up in a suburb of nearby Cleveland. “It was very consumer-driven and kind of had an ugly side, but there was something beautiful about it. There was something there.”

Gazing down at the motionless escalators, dead plants and empty benches below, he adds: “It’s still beautiful, though. It’s almost like ancient ruins.”

Dying shopping malls are speckled across the United States, often in middle-class suburbs wrestling with socioeconomic shifts. Some, like Rolling Acres, have already succumbed. Estimates on the share that might close or be repurposed in coming decades range from 15 to 50%. Americans are returning downtown; online shopping is taking a 6% bite out of brick-and-mortar sales; and to many iPhone-clutching, city-dwelling and frequently jobless young people, the culture that spawned satire like Mallrats seems increasingly dated, even cartoonish.

According to longtime retail consultant Howard Davidowitz, numerous midmarket malls, many of them born during the country’s suburban explosion after the second world war, could very well share Rolling Acres’ fate. “They’re going, going, gone,” Davidowitz says. “They’re trying to change; they’re trying to get different kinds of anchors, discount stores … [But] what’s going on is the customers don’t have the fucking money. That’s it. This isn’t rocket science.”

Shopping culture follows housing culture. Sprawling malls were therefore a natural product of the postwar era, as Americans with cars and fat wallets sprawled to the suburbs. They were thrown up at a furious pace as shoppers fled cities, peaking at a few hundred per year at one point in the 1980s, according to Paco Underhill, an environmental psychologist and author of Call of the Mall: The Geography of Shopping. Though construction has since tapered off, developers left a mall overstock in their wake.

Currently, the US contains around 1,500 of the expansive “malls” of suburban consumer lore. Most share a handful of bland features. Brick exoskeletons usually contain two storeys of inward-facing stores separated by tile walkways. Food courts serve mediocre pizza. Parking lots are big enough to easily misplace a car. And to anchor them economically, malls typically depend on department stores: huge vendors offering a variety of products across interconnected sections.

For mid-century Americans, these gleaming marketplaces provided an almost utopian alternative to the urban commercial district, an artificial downtown with less crime and fewer vermin. As Joan Didion wrote in 1979, malls became “cities in which no one lives but everyone consumes”. Peppered throughout disconnected suburbs, they were a place to see and be seen, something shoppers have craved since the days of the Greek agora. And they quickly matured into a self-contained ecosystem, with their own species – mall rats, mall cops, mall walkers – and an annual feeding frenzy known as Black Friday.

“Local governments had never dealt with this sort of development and were basically bamboozled [by developers],” Underhill says of the mall planning process. “In contrast to Europe, where shopping malls are much more a product of public-private negotiation and funding, here in the US most were built under what I call ‘cowboy conditions’.”

Shopping centres in Europe might contain grocery stores or childcare centres, while those in Japan are often built around mass transit. But the suburban American variety is hard to get to and sells “apparel and gifts and damn little else”, Underhill says.

Nearly 700 shopping centres are “super-regional” megamalls, retail leviathans usually of at least 1 million square feet and upward of 80 stores. Megamalls typically outperform their 800 slightly smaller, “regional” counterparts, though size and financial health don’t overlap entirely. It’s clearer, however, that luxury malls in affluent areas are increasingly forcing the others to fight for scraps. Strip malls – up to a few dozen tenants conveniently lined along a major traffic artery – are retail’s bottom feeders and so well-suited to the new environment. But midmarket shopping centres have begun dying off alongside the middle class that once supported them. Regional malls have suffered at least three straight years of declining profit per square foot, according to the International Council of Shopping Centres (ICSC).

Read the entire story here.

Image: Mall of America. Courtesy of Wikipedia.

Amazon All the Time and Google Toilet Paper

Soon courtesy of Amazon, Google and other retail giants, and of course lubricated by the likes of the ubiquitous UPS and Fedex trucks, you may be able to dispense with the weekly or even daily trip to the grocery store. Amazon is expanding a trial of its same-day grocery delivery service, and others are following suit in select local and regional tests.

You may recall the spectacular implosion of the online grocery delivery service Webvan — a dot.com darling — that came and went in the blink of an internet eye, finally going bankrupt in 2001. Well, times have changed and now avaricious Amazon and its peers have their eyes trained on your groceries.

So now all you need to do is find a service to deliver your kids to and from school, an employer who will let you work from home, convince your spouse that “staycations” are cool, use Google Street View to become a virtual tourist, and you will never, ever, ever, EVER need to leave your house again!

From Slate:

The other day I ran out of toilet paper. You know how that goes. The last roll in the house sets off a ticking clock; depending on how many people you live with and their TP profligacy, you’re going to need to run to the store within a few hours, a day at the max, or you’re SOL. (Unless you’re a man who lives alone, in which case you can wait till the next equinox.) But it gets worse. My last roll of toilet paper happened to coincide with a shortage of paper towels, a severe run on diapers (you know, for kids!), and the last load of dishwashing soap. It was a perfect storm of household need. And, as usual, I was busy and in no mood to go to the store.

This quotidian catastrophe has a happy ending. In April, I got into the “pilot test” for Google Shopping Express, the search company’s effort to create an e-commerce service that delivers goods within a few hours of your order. The service, which is currently being offered in the San Francisco Bay Area, allows you to shop online at Target, Walgreens, Toys R Us, Office Depot, and several smaller, local stores, like Blue Bottle Coffee. Shopping Express combines most of those stores’ goods into a single interface, which means you can include all sorts of disparate items in the same purchase. Shopping Express also offers the same prices you’d find at the store. After you choose your items, you select a delivery window—something like “Anytime Today” or “Between 2 p.m. and 6 p.m.”—and you’re done. On the fateful day that I’d run out of toilet paper, I placed my order at around noon. Shortly after 4, a green-shirted Google delivery guy strode up to my door with my goods. I was back in business, and I never left the house.

Google is reportedly thinking about charging $60 to $70 a year for the service, making it a competitor to Amazon’s Prime subscription plan. But at this point the company hasn’t finalized pricing, and during the trial period, the whole thing is free. I’ve found it easy to use, cheap, and reliable. Similar to my experience when I first got Amazon Prime, it has transformed how I think about shopping. In fact, in the short time I’ve been using it, Shopping Express has replaced Amazon as my go-to source for many household items. I used to buy toilet paper, paper towels, and diapers through Amazon’s Subscribe & Save plan, which offers deep discounts on bulk goods if you choose a regular delivery schedule. I like that plan when it works, but subscribing to items whose use is unpredictable—like diapers for a newborn—is tricky. I often either run out of my Subscribe & Save items before my next delivery, or I get a new delivery while I still have a big load of the old stuff. Shopping Express is far simpler. You get access to low-priced big-box-store goods without all the hassle of big-box stores—driving, parking, waiting in line. And you get all the items you want immediately.

After using it for a few weeks, it’s hard to escape the notion that a service like Shopping Express represents the future of shopping. (Also the past of shopping—the return of profitless late-1990s’ services like Kozmo and WebVan, though presumably with some way of making money this time.) It’s not just Google: Yesterday, Reuters reported that Amazon is expanding AmazonFresh, its grocery delivery service, to big cities beyond Seattle, where it has been running for several years. Amazon’s move confirms the theory I floated a year ago, that the e-commerce giant’s long-term goal is to make same-day shipping the norm for most of its customers.

Amazon’s main competitive disadvantage, today, is shipping delays. While shopping online makes sense for many purchases, the vast majority of the world’s retail commerce involves stuff like toilet paper and dishwashing soap—items that people need (or think they need) immediately. That explains why Wal-Mart sells half a trillion dollars worth of goods every year, and Amazon sells only $61 billion. Wal-Mart’s customers return several times a week to buy what they need for dinner, and while they’re there, they sometimes pick up higher-margin stuff, too. By offering same-day delivery on groceries and household items, Amazon and Google are trying to edge in on that market.

As I learned while using Shopping Express, the plan could be a hit. If done well, same-day shipping erases the distinctions between the kinds of goods we buy online and those we buy offline. Today, when you think of something you need, you have to go through a mental checklist: Do I need it now? Can it wait two days? Is it worth driving for? With same-day shipping, you don’t have to do that. All shopping becomes online shopping.

Read the entire article here.

Image: Webvan truck. Courtesy of Wikipedia.