Towns, commerce and the future

French towns are withering and losing their core, while shopping centers outside of the cities are booming, as recently described by the New York Times. Meanwhile, in the U.S., the suburbs are going through an equally dramatic transition. Malls are being outcompeted by e-commerce and eventually have to shut down, leading to shrinking demand for chain-restaurants and other services that previously were being frequented by hungry and entertainment-seeking shoppers.

Stories like this could be written about towns in various countries. The creation of shopping clusters outside of city centers and the rise of e-commerce are two global themes that no one will be able to stop. The best way to look at the shift and its negative consequences is therefore with a stoic mindset, following the principle that what you cannot control, you shouldn’t not spend a lot of time trying to control. As long as a city doesn’t force its population to shop at the local stores (which hopefully will never happen), more shops and old school businesses will vanish. The economics and experience of getting things from the giant mall or – increasingly more likely – from the internet, are generally too intriguing for consumers to let the undesirable side effects for the community come in between themselves and the convenient purchase or unbeatable bargain. Continue Reading