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Posts Tagged ‘mall’

When — if ever — do we just stop shopping?

In behavior, business, culture, domestic life, family, life, Money, urban life, US on December 19, 2013 at 12:18 am

By Caitlin Kelly

Every day, my email in-box (guilty!) fills up with notifications of sales from flash-sites like Gilt and One King’s Lane and Ideeli or from retailers I’ve purchased from before.

I delete almost every single one.

Every weekend, (yes, we still read some of our newspapers in print), a thick, glossy pile of flyers tumbles in a nasty tree-wasting avalanche from within the folds of the Times, each imploring us to spendspendspendbuybuybuybuybuybuy!

Consumer Spending

Consumer Spending (Photo credit: 401(K) 2013)

Between the easy availabilty of on-line shopping — a boon to the home-bound or retail-underserved — and a consumer-driven culture urging us to buy everything we see, right now, it’s an ongoing challenge not to spend money. Not to buy even more stuff.

The U.S. economy, a statistic that always somewhat horrifies me in its implications of rampant consumption, is based 70 percent on consumer spending — gas, food, diapers, gum, Manolos, trucks, Ipads, whatever.

So if we actually stop shopping, or slow down our spending on consumer goods, the economy slows. If you live in the U.S., and have any disposable income (such a bizarre phrase!) it can feel like some civic or patriotic duty to go spend some more money.

When I worked retail for 2.5 years in an upscale suburban New York mall, I saw the insanity — truly — of holiday shopping firsthand. People staggered into our store already so loaded with bags they looked like pontoons. They pawed through the racks, threw our stock onto the floor and shouted with anger when we didn’t have exactly what we needed when they needed it.

Ugly!

And yet very few Americans, even those with decades of earned income, have saved enough money to ever stop working.

In October 2013, USA Today reported:

A new report paints a rather grim assessment of how prepared we are for retirement. “The Retirement Savings Crisis: Is it Worse Than We Think?” from the Washington, D.C.-based National Institute on Retirement Security, says the typical American family has only “a few thousand dollars” saved for retirement.

“We have millions of Americans who have nothing saved for retirement,” says Diane Oakley, executive director of the NIRS. “We have 38 million working-age households who do not have any retirement assets.”

For people 10 years away from retirement, the median savings is $12,000. “Of the people between 55 and 64, one third haven’t saved anything for retirement,” Oakley says.

I read those statistics and wonder what is going to become of them; not everyone has children able or willing to rescue them.

Fortunately, (partly because we never assumed the costs of raising children), we’re way ahead of that $12,000 figure. We drive a 13-year-old vehicle and live in a one-bedroom apartment and I set aside the maximum for my IRA, even when I’d really prefer to spend that money on a long and fantastic overseas vacation, or some gorgeous new clothes or to take in all the shows, plays and concerts that Manhattan offers us.

Having significant savings is, for me, a much deeper comfort than anything I could buy.

Here, from Harvard Business School, why buying an experience (if you must buy anything at all) wins:

Conventional wisdom says that money can’t buy happiness. Behavioral science begs to differ. In fact, research shows that money can make us happier—but only if we spend it in particular ways.

In their book Happy Money: The Science of Smarter Spending, authors Elizabeth Dunn and Michael Norton draw on years of quantitative and qualitative research to explain how we can turn cash into contentment.

The key lies in adhering to five key principles: Buy Experiences (research shows that material purchases are less satisfying than vacations or concerts); Make it a Treat (limiting access to our favorite things will make us keep appreciating them); Buy Time (focusing on time over money yields wiser purchases); Pay Now, Consume Later (delayed consumption leads to increased enjoyment); and Invest in Others (spending money on other people makes us happier than spending it on ourselves).

I try to adhere to all five of these principles:

Paris - Île St. Louis: Berthillon

Paris – Île St. Louis: Berthillon (Photo credit: wallyg)

– I can still taste the salted caramel ice cream we savored at Berthillon on the Ile St Louis in Paris five years ago.

English: Ile St-Louis - Paris Français : Ile S...

English: Ile St-Louis – Paris Français : Ile Saint-Louis – Paris IV (Photo credit: Wikipedia)

– I’ve chosen to work fewer hours, (which restricts my ability to shop, given that I save 15 percent of my pre-tax income every year as well), to better enjoy my free time and have experiences I value more than buying more things — to take a long walk mid-day or have coffee with a friend or read a book instead of flogging myself into another 10 or 15 hours’ paid work. I ended up in the hospital in 2007 for three days with pneumonia after chasing money too hard, too fast. Never again.

– I tend to hoard gift cards for as long as a year before finally using them, as I did recently with a Christmas 2012 gift card from my husband, (it bought two great pairs of shoes on sale.)

– I splurge on small surprises for Jose whenever I can, whether a book or a pair of colorful socks or a dinner out.

In a season where so many of us are rushing about madly shopshopshopping, it’s easy to forget that a more valuable gift can be as small and essential as a hug, a night or two of babysitting for a weary friend, making a meal for an elderly or ill neighbor.

It doesn’t have to come in a shiny Apple-designed, (cheap Chinese labor made), plastic shell or turquoise Tiffany box, no matter what their ads insist.

 Are you sick and tired of shopping?

Retail Reporters Keep Getting It Wrong: My Black Friday Report

In business on November 29, 2009 at 8:07 am
In a mall... a funny fair... crazy!!

Image by Antoine Hubert via Flickr

Every day, I read the business section of The New York Times and I read The Wall Street Journal. I listen to NBC Nightly News, BBC World News and PRI’s business show, Marketplace. The received wisdom is: people aren’t shopping, people are only buying what’s on sale, people are only buying hot, trendy items like fake hamsters.

Not at our store. I’m forbidden from giving specific figures, having signed an NDA when I started working there, but in our wealthy neighborhood — with shoppers streaming into the mall from big bucks enclaves like Scarsdale, Greenwich, Cos Cob and Darien in their shiny new Range Rovers, Escalades, Mercedes and Lexuses (Lexii?) — they’re spending plenty. I had a four-figure sale to a woman heading off with her family on a ski vacation in Switzerland, the largest single sale I’ve ever had.

It was the usual Black Friday madness, our entire staff working together re-making every pile of sweaters every five minutes like some retail Augean stable. The place looked like a plague of locusts, albeit bearing fat wallets, had swept through.

I worked 11 a.m. to 8 p.m., getting off easy; one of my co-workers, a single mom with a long bus commute, had to wake at 3 a.m. to get to the store by 6 a.m. Our breaks were 30 minutes, not the usual hour (unpaid) but our boss supplied boxes of pizza and bottles of soda to fuel us through it all. We now know enough to drink as much water as we can and lube up our hands with moisturizer many times a day; we get dehydrated and handling clothing all day sucks the moisture from your skin. Sometimes it gets so dry it cracks.

Many shoppers asked if we were having a sale and, with only a few things marked down, harrumphed and left. That’s nothing new, though. We’re asked every single day for every form of discount: military, students, teachers. Who does do this? Not our company.

Working a sales floor, even part-time, affords me an interesting perspective on this recession and on who’s spending and why. I tell you one thing: people with money are whizzing through it as though it’s 2005, not the second full year of the worst recession in 70 years. The wealthy are so insulated, with their 8-carat diamonds and Birkin bags and four-ply cashmere. Whoever’s hurting out there, it ain’t them.

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