Utrecht Shopping
Come to Utrecht by train and start shopping. ‘Hoog Catharijne’ is one of Holland’s largest indoor shopping areas and has a broad diversity of shops. Shopping arcade Hoog Catharijne is connected to Utrecht Central Station, which makes a daytrip by train ideal. However, the narrow streets in Utrecht, as well as the general and specialty markets, also have an irresistible appeal.
Shopping Streets of Utrecht
To succeed in fashion shopping in Utrecht stroll around the streets ‘Lijnmarkt’, ‘Oude Gracht’, ‘Choorstraat’, ‘Oudkerkhof’ and ‘Korte Minrebroederstraat’. Big brands and small boutiques with fashion, accessories and jewelry are lined up side by side. As motorized traffic is banned from the heart of the city, you will be able to shop at your leisure.
At a ten minute walk from the city center lies the ‘Nachtegaalstraat’. This street has some great shops, such as interior design shops and some splendid delicatessen. You can also visit several markets in Utrecht, such as the flower market on Janskerkhof and on the Oudegracht, the ‘lapjesmarkt’ (fabrics market) on Breedstraat and the general market on Vredenburg square.
The Town of Zeist
If you love chic boutiques and haute couture you should visit Zeist. This little town is just a ten minute drive away from Utrecht. Spend an afternoon in the streets ‘Slotlaan’, ‘Hogeweg’, ‘Voorheuvel’ and ‘Steynlaan’ to still your hunger for fashion.
From hitting the mall with your girlfriends on a Saturday afternoon, to holiday spending on gifts that go under the tree, shopping could be called one of America's favorite pastimes.
For most people, it means some new clothes for work or a small trinket for a friend. For others, however, shopping is much more than an enjoyable pastime, and in some cases, it is a real and destructive addiction that can turn into a financial disaster.
"Compulsive shopping and spending are defined as inappropriate, excessive, and out of control," says Donald Black, MD, professor of psychiatry at the University of Iowa College of Medicine. "Like other addictions, it basically has to do with impulsiveness and lack of control over one's impulses. In America, shopping is embedded in our culture; so often, the impulsiveness comes out as excessive shopping."
Sometimes referred to as "shopoholism," shopping addiction can wreak havoc on a person's life, family, and finances. Experts explain to WebMD why shopping can be so addictive, what the warning signs are, and how to stop the cycle of spending.
Reinforced Shopping
"No one knows what causes addictive behaviors, like shopping, alcoholism, drug abuse, and gambling," says Ruth Engs, EdD, a professor of applied health science at Indiana University. "Some of the new evidence suggests that some people, maybe 10%-15%, may have a genetic predisposition to an addictive behavior, coupled with an environment in which the particular behavior is triggered, but no one really knows why."
While the origin of addictions remains uncertain, why addicts continue their destructive behaviors is better understood.
"Individuals will get some kind of high from an addictive behavior like shopping," says Engs. "Meaning that endorphins and dopamine, naturally occurring opiate receptor sites in the brain, get switched on, and the person feels good, and if it feels good they are more likely to do it -- it's reinforced."
So what are the telltale signs that shopping has crossed the line and become an addiction?
Shopoholism
"There are certainly a lot of commonalities among shopoholics and other addicts," says Engs. "For instance, while alcoholics will hide their bottles, shopoholics will hide their purchases."
What else should a concerned family member or friend look out for when they think shopping has become a problem?
* Spending over budget. "Often times a person will spend over their budget and get into deep financial trouble, spending well above their income," says Engs. "The normal person will say, 'Oops, I can't afford to buy this or that.' But not someone who has an addiction," explains Engs -- he or she will not recognize the boundaries of a budget.
* Compulsive buying. "When a person with a shopping addiction goes shopping, they often compulsively buy, meaning they go for one pair of shoes and come out with 10."
* It's a chronic problem. "A shopping addiction is a continuous problem," says Engs. "It's more than two or three months of the year, and more than a once-a-year Christmas spree."
* Hiding the problem. "Shopoholics will hide their purchases because they don't want their significant other to know they bought it because they'll be criticized," says Engs. "They may have secret credit card accounts, too. Because this problem affects mostly women, as alcoholism affects mostly men, husbands will all of sudden be told their wife is $20,000-$30,000 in debt and they are responsible, and many times, this comes out in divorce."
* A vicious circle. "Some people will take their purchases back because they feel guilty," says Engs. "That guilt can trigger another shopping spree, so it's a vicious circle." And in these people, debt may not be an issue because they're consistently returning clothes out of guilt -- but a problem still exists.
* Impaired relationships. "It is not uncommon for us to see impairments in relationships from excessive spending or shopping," says Rick Zehr, vice president of addiction and behavioral services at Proctor Hospital at the Illinois Institute for Addiction Recovery. "Impairment can occur because the person spends time away from home to shop, covers up debt with deception, and emotionally and physically starts to isolate themselves from others as they become preoccupied with their behavior."
* Clear consequences. "It's just like any other addiction -- it has nothing to do with how much a person shops or spends, and everything to do with consequences," says Zehr. "We often get the question around the holidays that because a person spent more money than she intended, does this make her an addict? The answer is no. However, if there is a pattern or a trend or consequences that occur with excessive shopping then the person may be a problem spender -- the hallmark is still loss of control. If they are no longer in control of their shopping but their shopping is in control of them, they've crossed the line."
According to Zehr, these behaviors can also signal a serious problem:
* Shopping or spending money as a result of feeling angry, depressed, anxious, or lonely
* Having arguments with others about one's shopping habits
* Feeling lost without credit cards -- actually going into withdrawal without them
* Buying items on credit, rather than with cash
* Describing a rush or a feeling of euphoria with spending
* Feeling guilty, ashamed, or embarrassed after a spending spree
* Lying about how much money was spent. For instance, owning up to buying something, but lying about how much it actually cost
* Thinking obsessively about money
* Spending a lot of time juggling accounts or bills to accommodate spending
"If someone identifies four or more of any of these behaviors, there may be a problem," Zehr explains to WebMD.
Seeking Addiction Help
When a friend or family member recognizes a shopping addiction, start by getting professional help.
"The first thing to do is to seek help, and that can occur at different levels," says Zehr. "For the spouse, family member, or friend who is concerned, an intervention is always a good idea. Also, find the closest Debtors Anonymous, which is a 12-step program that will be important for ongoing maintenance and support. And get credit counseling, as many of the people who seek treatment at our facility have an average debt as a result of their addiction of around $70,000."
Recognize, as well, that treating a shopping addiction requires a multifaceted approach.
"There are no standard treatments for shopping addiction," says Black. "Medications have been used, generally antidepressants that treat, in some cases, the underlying issue of depression in someone with an addiction, but with mixed results. Therapists also focus on cognitive-behavioral treatment programs, and credit or debt counseling can be very helpful to some people, as well."
Black explains that there is no quick and easy answer that will immediately cure a shopping addiction, and while treatment is a necessary part of solving the problem, so is behavior change on the part of the addict.
"With some patients, I tell them they should have a self-proposed ban on shopping, and with others, some of my very worst cases, I tell them they should have someone else controlling their finances for them," says Black.
Black recommends some basic changes in behavior that will have a big impact on breaking a shopping addiction:
* Admit that you are a compulsive spender, which is half the battle
* Get rid of checkbooks and credit cards, which fuel the problem
* Don't shop by yourself because most compulsive shoppers shop alone and if you are with someone you are much less likely to be spend
* Find other meaningful ways to spend time
And keep in mind that while behavior change is clearly crucial to recovery, so is reaching out for help.
"While I recommend starting with a psychiatric evaluation, you can also find out what resources are in your area, and where you, a relative, or friend can start to get help," says Engs.
TERRY LUNDGREN and Kevin Ryan know and like each other. But when it comes to the future of retailing the boss of Macy's, an American department-store giant, and the chief executive of Gilt Groupe, an online retailer, disagree wildly. Mr Lundgren remains a firm believer in an empire of bricks and mortar. Mr Ryan is betting big on online-only selling.
“It used to be catalogues killing physical stores, then it was TV shopping and now it is online retail,” says Mr Lundgren. Although he will not be pinned down on whether the internet is a threat to shopkeepers or an opportunity for them, he is convinced that his chain is on the right path. Macy's is embracing “omnichannel” integration, that is, selling stuff on television, through mail-order catalogues and online, as well as keeping its department stores. The company runs 810 shops across America under the mid-price, mid-market Macy's brand and 38 posher Bloomingdale's outlets.
Mr Ryan argues that bricks-and-mortar shops are gravely threatened by Amazon and other online-only retailers, and says he can see “no evidence that there are big opportunities for traditional retailers in online retail.” Overall, retail sales in America are pretty flat, so the double-digit growth of online sellers is coming at the expense of physical shops. Amazon's sales in the past year were $48 billion, compared with Macy's $26 billion. Last year online sales in America reached $188 billion, about 8% of total retail sales. They are forecast to reach $270 billion by 2015 (see chart).
So far, however, Mr Lundgren has good reason not to worry that the sky is falling. On February 21st Macy's reported fourth-quarter figures that were better than many analysts had expected. Revenue was 5.5% higher than a year earlier, at $8.7 billion. Net profits were up by 11.7%, at $745m. Most relevant for Mr Lundgren's debate with his friendly rival, online sales from the websites of Macy's and Bloomingdale's jumped by 40%.
This reflects Macy's efforts to expand its online business. In January last year it said it would add nearly 3,500 full-time, part-time and seasonal staff to its online team. It is building a new logistics centre for online sales in West Virginia and expanding an existing one in Tennessee. And it is fixing a glaring flaw in its internet-sales operation: until now online shoppers have only been able to buy goods in Macy's warehouses; soon they will be able to order items from the stock of its stores.
Magic mirrors and Facebook friends
Mr Lundgren is keen to continue experimenting with ways to use the internet. In 2010 Macy's introduced a virtual fitting room where customers tried on digital representations of clothes through their reflection in a “magic mirror” and shared them with their friends on Facebook. “It didn't work,” admits Mr Lundgren. So Macy's is now trying out virtual mannequins.
With its thriving internet business, Macy's is ahead of many other retailers. Walmart, the world's biggest, waited for a long time and dithered over its online strategy until it finally decided to “make winning e-commerce a key priority”, as Mike Duke, its chief executive, puts it. After the takeover last year of Kosmix, a social-media technology platform, Walmart created @WalmartLabs, a hub for digital innovation in retailing. It is also pushing e-commerce abroad. On February 19th Walmart said it would buy a controlling stake in Yihaodian, a Chinese shopping website.
Like an increasing number of store chains, Walmart is inviting online shoppers to pick up their purchases from its physical stores if that suits them. Since last June they have been able to do so on the day they place their order. Now, says Joel Anderson, who runs the company's online business, more than half of internet orders are collected from stores. The company claims this is saving shoppers millions of dollars in delivery charges. Those who do not live near one of the 3,800 Walmart shops can opt to collect their purchases from one of 660-odd FedEx locations across America.
In spite of these recent improvements, Walmart is not yet reaping big profits from its online business. It does not break out its internet sales from the total, but they are still tiny for its size. On February 21st the company reported a 6% rise in revenue for the fourth quarter—but a 15% slump in profits. The increase in revenue had been paid for with steep price cuts.
There are some retailers, in particular those at the extremes of the market, that can safely ignore the threat from shoppers' migration to the internet. At the luxury end, Yves Saint Laurent is unlikely to start flogging its ball gowns over the net; at the cost-conscious end, dollar stores will continue “piling it high and selling it cheap”. But the vast majority of retailers in between may have little choice but to counter the rise of online-only rivals by creating strong internet operations of their own.
The biggest threat to most of them is Amazon, the undisputed champion of online selling. It has no physical stores, but has an impressive logistical network: it is said to have 34 huge distribution centres in America and to be building 15 more this year (oddly, it refuses to confirm this).
Other online-only retailers have little chance of felling this Goliath. Their best bet is to be distinctive. Mr Ryan's Gilt Groupe is modelled on France's Vente Privée, an online shopping club for expensive branded stuff at reduced prices. Gilt Groupe started out in 2007 with eight employees. Today it has 850 staff and has branched out from luxury fashion for women into high-end food, travel and men's clothes. Its revenue was $600m last year. It is not making money yet, which is why Mr Ryan, who is likely to be eyeing an initial public offering (IPO) in the not too distant future, recently adjusted the focus of the company from investment in growth to profitability.
Mr Ryan's business has demography on its side. Its customers' average age is 34. Consumers aged 24 to 35 already do about a quarter of their shopping online, says John Deighton of Harvard Business School. In Mr Deighton's view the internet-retail revolution is over, in that online buying is well established and will only keep growing. However, he says it is unclear how important a sales tool social networks like Facebook and Twitter, to which some online retailers are pinning their hopes, will turn out to be.
Some bricks-and-mortar retailers have already had disappointing experiences trying to sell through social media. Over the past year GAP, J.C. Penney and Nordstrom have opened and closed storefronts on Facebook. The social-networking site, which this month filed for an IPO, is trying hard to be a top shopping destination for its 845m members. Yet so far people still tend to visit Facebook to socialise with their friends, not to shop or even to browse in online stores.
Shopping by smartphone
What does seem clear is that as personal computing goes mobile people are buying more via smartphones. Four years ago hardly anyone bought things on their mobile devices but today nearly one-quarter of Gilt Groupe's revenue comes from smartphone shoppers; on some weekends the proportion reaches 40%. Nearly one-third of people living in America own a smartphone, and 70% of these use it to do searches while they are inside a shop, usually to compare prices. “By 2014 mobile internet will overtake desktop internet usage for shopping,” predicts Nigel Morris, chief executive of Aegis Media Americas.
Although it is getting ever easier to blow your credit-card limit without leaving the sofa, there are some who still see a future for bricks-and-mortar stores. Darrell Rigby of Bain, a consultancy, says customers often still want to touch, feel and taste products. And sometimes when they want something, they want it now, and will not put up with waiting for a delivery.
The most clued-up shopkeepers realise that they must make the most of such advantages over online rivals, and that to do so they must make their stores more enjoyable places to visit. Macy's says it is investing about $400m in the renovation of its flagship store on Herald Square in New York City, which it claims is the world's biggest department store, with 1.1m square feet (102,000 square metres) of retail space. To this Macy's will add another 100,000 square feet, part of which will become the largest women's shoe department in the world. The enlarged shop will also have 22 dining venues and 300 extra fitting rooms.
In 2010 Macy's launched a training programme for its more than 130,000 sales people, “MAGIC Selling”, which coached them to be more helpful and friendlier with customers. It is tailoring the merchandise stocked in its stores more closely to local tastes. During the holiday season it sells Elvis mementos in its shops in Tennessee and Our Lady of Guadalupe ornaments in cities with big Hispanic populations.
Retailers with lavishly furnished stores and helpful assistants will increasingly have to put up with free-riders who come into the shop to check out the products and get some advice, before slinking off to buy them for less online. Shops' best defence against “showrooming”, as this practice is called, is to stock more own-label items that are not available anywhere else.
Have you got this in my size?
However, there is no single recipe for retailing success in the internet age. Retailers will need to balance their investment between staff, locations, inventory and online operations says José Alvarez of Harvard Business School. For some expensive products it makes sense to have a low inventory, a big investment in showrooms, elaborate online operations and well qualified sales people. For more commoditised items it is more important to have a big inventory than a flashy display. Things that are increasingly being bought online must be swept off the shelves to make way for products that people still want to examine and compare before buying.
Whatever priorities retailers set, their physical stores are likely to shrink as the share of sales made online keeps rising. Retailers in America have a surfeit of space. Between 1999 and 2009 the amount of shopping space per person boomed from 18 square feet to 23 square feet. The productivity of that commercial acreage slumped after the financial crisis and shows no sign of recovering.
The retailers who will survive the drift online are the ones “listening to the dynamic demands of customers,” says Walmart's Mr Anderson. For example, his firm recently found out that some of its recession-hit customers want to order on their smartphones but do not have credit cards. So it has let them make their orders online but come into the shop to pay cash.
Walmart's customers can also now make their shopping list at home by just opening the fridge and uttering “milk, tomatoes and cottage cheese” through voice-recognition software. The list can then be sorted to take account of their local store's layout, so they can make the shortest possible tour through the aisles. Shopping promises to be more fun and less hassle in future. The best retailers might enjoy themselves too.
