University at Buffalo School of Management

10 Buffalo Business Spring 2018 At top: The Randall Park Mall, a 2-million-square-foot shopping center that opened in Randall, Ohio, in 1976 and closed in 2009. In 1995, 120 stores employed 5,000 people in the mall, but by 2008 it was basically empty. Destruction began on the mall in 2014 and it was replaced by an industrial park. Photo: Johnny Joo When Harold Star had a key on his laptop come loose, he took it to a big box electronics retailer for repair. He had hoped they'd be able to fix or replace the key on the spot, but was willing to leave the computer there if the repair or part order would take longer. Instead, the associate behind the counter simply said, "We don't service that." "I was miffed and tried a couple of different ways to get him to take it," says Star, clinical assistant professor of operations management and strategy. "But he refused, so I took it to a computer repair guy instead." As it turns out, the dislodged key was perfect- ly fine and just needed to be reattached in a way Star hadn't tried. "All the technician at the big box store had to do was pop it back in, and I walk away saying, 'This is a place to go down the road if I have problems with my electronics,'" says Star. "Instead, that kid ensured I won't give them any business ever again." How shopping habits are changing, and what sellers can do to adapt Retail revolution B Y k E V I N M A N N E Retail is changing, and with an increase in com- petition, consumers have more power than ever to decide where to spend their money. Some may buy groceries that are healthier and better for the en- vironment, rather than going for the lowest price. Others may choose to shop on Main Street over going to the mall. And increasingly, more are buying online and avoiding the kid behind the counter altogether. Supermarket sweep Wal-Mart opened its first Supercenter in 1988, combining a discount outlet with a fully stocked gro- cery store. By 2001, the chain had become the larg- est food retailer in the U.S., with total grocery sales of $56 billion. Today, the retail juggernaut holds a 20 percent share of the $800 billion grocery market. In the ever-growing organic food category, spe- cialty outlets like Whole Foods or Trader Joe's may be top of mind, but Costco is top in sales. The whole- sale chain racked up $4 billion in organic food sales in 2016, besting Whole Foods by $400 million. At right: The first Amazon Books physical store, which opened in Seattle in 2015. Today, Amazon operates 13 U.S. bookstores, with plans for more in the near future.

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