We've talked before about geek culture taking over the world, from movies to conventions, but another trend is accelerating that may affect hobby gaming: the death of the retail store. Can geek culture save it?
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[h=3]From Craftspeople to Chain Stores[/h]Retail stores came into vogue in the 1870s. Prior to that point, shoppers primarily dealt with craftspeople locally:
It didn't take long for another company to upend the department store mode. It was Sears who cut out the middleman, a sort of Amazon of its day:
And so that model continued. Until now.
[h=3]Death of a Salesman[/h]Retail store closings have been accelerating for some time, but the rate of closures has sharply increased this year. Jackie Wattles reports at CNN:
Why is this happening? The decline, triggered by the global recession in 2008, has two primary drivers, cheaper clothing alternatives and online shopping:
It's easy to see why some analysts are predicting the death of brick-and-mortar altogether. And yet there are standouts.
[h=3]Those Still Standing[/h]There are companies that are thriving in this new economic environment, like discount retailers T.J. Maxx and Marshalls, which points to price being a primary factor in the decline of brick-and-mortar. But more high-priced stores are doing well too. Apple's model in particular shows that experience is still important to customers, and that's good news for geek stores.
Hobby stores can resist these trends. A defining trait of geekdom is its devoted fan base, a key attribute for return customers. Additionally, hobby gaming in particular is a participatory experience that requires more than just a sale. Synchrony Financial's white paper, "The Future of Retail," explains the key attributes that will differentiate stores in the future, and geek stores fit the bill:
Hobby gaming also tends to have a much stronger form of brand identification that encourages loyalty:
ICv2 notes that stores are recognizing the value of geekdom by shifting their inventories, with Barnes & Noble, Gamestop, and FYE jumping on the geek bandwagon.
Although the future of brick-and-mortar stores looks uncertain, it seems likely hobby gaming outlets -- with their interactive experiences, loyal fan base, and strong brands -- will come out stronger from the downturn.
Mike "Talien" Tresca is a freelance game columnist, author, communicator, and a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to http://amazon.com. You can follow him at Patreon.
View attachment 86116
[h=3]From Craftspeople to Chain Stores[/h]Retail stores came into vogue in the 1870s. Prior to that point, shoppers primarily dealt with craftspeople locally:
It wasn’t until mass manufacturing gathered steam, fueled by the national railroad and wider transportation networks, that the concept of a department store became viable. John Wanamaker, whom many generally regard as the pioneer of marketing, opened the first department store in Philadelphia in 1876. Unlike small shops at the time, Wanamaker’s made use of price tags and a money-back guarantee. Out went constant haggling with small-time proprietors, and with it, various cottage industries.
It didn't take long for another company to upend the department store mode. It was Sears who cut out the middleman, a sort of Amazon of its day:
Just as Wanamaker and its progeny—Macy’s, Lord & Taylor, Nordstrom, Saks, and others—forever changed the retail landscape in dense cities, Sears made a dent in sparsely populated rural areas. Sears, Roebuck & Co.’s mail-order business flourished at a time when farmers in rural America were selling their crops for cash and buying what they needed from rural general stores.
And so that model continued. Until now.
[h=3]Death of a Salesman[/h]Retail store closings have been accelerating for some time, but the rate of closures has sharply increased this year. Jackie Wattles reports at CNN:
Brokerage firm Credit Suisse said in a research report released earlier this month that it's possible more than 8,600 brick-and-mortar stores will close their doors in 2017. For comparison, the report says 2,056 stores closed down in 2016 and 5,077 were shuttered in 2015. The worst year on record is 2008, when 6,163 stores shut down. "Barely a quarter into 2017, year-to-date retail store closings have already surpassed those of 2008," the report says. If stores do close at the rate Credit Suisse is projecting, it could mean America will lose more than 147 million square feet of retail space this year.
Why is this happening? The decline, triggered by the global recession in 2008, has two primary drivers, cheaper clothing alternatives and online shopping:
The growth of cheap, trendy fast-fashion has been unstoppable in the US in the past decade. To illustrate the point, Macy’s famous Manhattan flagship store on 34th Street now shares the corridor with three H&M stores, including the world’s largest, which is literally across the street from one of its other locations. Internet retailers have been grabbing customers from department stores, too, and reducing foot traffic to their brick-and-mortar stores. Financial firm Cowen and Company predicts department-store apparel sales will grow a little in the coming years, but Amazon will blow past them to surpass Macy’s as the biggest clothing retailer in the US by 2017.
It's easy to see why some analysts are predicting the death of brick-and-mortar altogether. And yet there are standouts.
[h=3]Those Still Standing[/h]There are companies that are thriving in this new economic environment, like discount retailers T.J. Maxx and Marshalls, which points to price being a primary factor in the decline of brick-and-mortar. But more high-priced stores are doing well too. Apple's model in particular shows that experience is still important to customers, and that's good news for geek stores.
Hobby stores can resist these trends. A defining trait of geekdom is its devoted fan base, a key attribute for return customers. Additionally, hobby gaming in particular is a participatory experience that requires more than just a sale. Synchrony Financial's white paper, "The Future of Retail," explains the key attributes that will differentiate stores in the future, and geek stores fit the bill:
Brick and mortar stores will exist in the future, but there will be fewer of them. A new model of delivering not only products, but also genuine brand experiences is emerging. People are social by nature and will be drawn to gathering places to share ideas and be entertained. It’s not just about making money. It’s about building trust. Retailers who tap into this trend will be rewarded.
Hobby gaming also tends to have a much stronger form of brand identification that encourages loyalty:
In high-involvement categories, specialty retailers will remain a go-to, but variety will be important. With that said, shoppers are reaching a tipping point around American consumption. Feelings of angst about acquiring too much “stuff” is driving a shift toward purchasing experiences rather than things.
ICv2 notes that stores are recognizing the value of geekdom by shifting their inventories, with Barnes & Noble, Gamestop, and FYE jumping on the geek bandwagon.
Although the future of brick-and-mortar stores looks uncertain, it seems likely hobby gaming outlets -- with their interactive experiences, loyal fan base, and strong brands -- will come out stronger from the downturn.
Mike "Talien" Tresca is a freelance game columnist, author, communicator, and a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to http://amazon.com. You can follow him at Patreon.
