Text 4.Us Department Stores Launch Counter Attack

As consumers demand better value and a more interesting and stimulating experience while shopping, department stores face a clear choice: adapt or die.

“My concern is that they will become retail museums”, says Britt Breemer, chairman of America’s Research Group. “The bottom line is that they have to admit they are in trouble and figure out some way to reinvent themselves.”

This may help to explain why four times as many households visit discount stores as department stores.

Department stores face mounting competition from speciality retailers and discounters, such as Wal-Mart and Target. Their steady loss of market share may be partly because the concept was born in a different era, a time when, for families, a trip to the store combined shopping with entertainment.

What is needed, say retail experts, is a new approach. A typical example of this approach working is seen at Selfridges. This UK group has recast itself from a “sleepy 1970’s-style department store” into a retailing experience fit for the 21st century, says Wendy Liebmann, President of WSL Strategic Retail.

One of the main changes is that more space is rented to vendors, in what is sometimes referred to as the show case business model: vendors design their own booths and are encouraged to be creative.

The Selfridges model, says Peter Williams, CEO of Selfridges, is about creating an experience that is “new, interesting and different” where it is not just the product that is different. He says the problem with US department stores is that they all look the same.

Arnold Aronson, a management consultant, believes Selfridges could be a prototype for failing US department stores: “It has brought back excitement and novelty and is really seducing customers by developing the right merchandise, in the right quantities, at the right time.”

Federated, which owns Macy's and Bloomingdale's, appears to be moving in the right direction. Forty-two stores are being upgraded with the latest components of its “reinvent” strategy, including enhanced fitting rooms, convenient price-check devices, comfortable lounge areas, computer kiosks and shopping carts.

The challenge department stores face is how to develop in a sector that is, essentially, not growing. But if they adapt, many industry observers believe they will survive. “The department store is not dead, it will live on”, said Robert Tamilla, Professor of Marketing at the University of Qebec. “But it will not be the same animal it was before.”

(The Economist, 2014)

Text 5.Road ragers in the sky

Delays, cramped accommodation, lousy air quality, poor service, smoking bans... It's not surprising that passengers turn to drink - which is when the real problems begin. Airlines and their long-suffering customers are reporting a steep climb in air rage incidents, most of them drink-related. Not surprisingly, a large proportion of the high-altitude high jinks take place on flights within and from the USA with its huge aviation industry. But British flights too are increasingly affected. Last year saw several high-profile incidents, including a transatlantic flight diverted when a party of London-based Irish travellers became drunk and disorderly. Then there was the case of a British Airways manager who was suspended when she struck a cabin attendant who refused her drink. The then transport minister John Reid spoke of introducing a new air-rage criminal offence, after another stewardess was attacked and badly wounded. In Canada too there is talk of new stiff penalties for rowdy or violent passengers. And in Australia, no fewer than 600 incidents were reported last year.

Some more recent examples

Some incidents are apparently sparked by mundane problems, familiar to nearly all regular air travellers. One case reported from America stemmed from an interminable delay in takeoff, when passengers were cooped up in their aircraft on the tarmac for four hours, without food, drink or information. Mass unrest is less common than individual misbehaviour, as in the scary case of the convict who recently went beserk on a flight, attacked the crew and tried to open a door in mid-flight.

The causes

The psychology of air rage is a new and fast-growing area of study, and there are almost as many explanations as examples. Most analysts of the phenomenon blame alcohol, but there is a growing school of thought which points the finger at the airlines themselves. In their zeal to cut costs, they cramming ever more passengers into their aircraft, while trimming back on cabin crew, training, and quality of service, all of which increases passenger frustration. In addition, there is mounting concern in the USA about another cost-cutting exercise which could seriously harm passengers' health: cabin ventilation.

Poor air in the air

Modern aircraft are equipped with sophisticated air conditioning devices - but running them at optimum capacity burns up valuable aviation fuel. Many airlines routinely instruct their flight crews to run the systems on minimum settings. Campaigners for improved air quality claim that this can lead to irritability, disorientation, and allergenic reactions.

Passenger complaints

In the USA, the soaring number of passenger complaints across a wide range of issues, is reflected in a rash of new internet sites devoted to rubbishing the airlines and demanding better service. One of the most outspoken is Airlinessuck.com, which is stridently calling for an air passengers’ Bill of Rights. American travel agents are also active in the campaign for travellers' rights. On the specific issue of air rage, there is even a Sky Rage Foundation, which issues a regular – and rather frightening – newsletter.

The airlines' response

Cabin and flight crews, who are in the front line of the battle against disruptive and dangerous in-flight behaviour, have called for stiffer penalties against offenders. Managements have also called for legislation - while ritually denying that cost-cutting practices have contributed to the problem. But there are some signs, in America at least, that the airlines are at last responding to a growing backlash of customer dissatisfaction and rising Congressional concern. Some major lines have announced concessions to the most frequent complaint of all, and are removing seats to make more room for their customers.

(The Guardian, 2000)