Retailers - dropping those discounts? going upscale? What does all this mean to us? - New trends in retail

Now that the post-Thanksgiving sales are on, the reports from the markets come in.... the US consumers don't seem to pay much heed to rising fuel prices or increasing interest rates. People are rushing into buy from retailers in droves - and according to the WSJ, some are even entering into brawls to buy items on sale (as is the case in a WalMart in North Dallas where the police had to be brought in to control a crowd of aggresive laptop shoppers).

In their report on trends in retail, WSJ brings out some interesting points, some of which I've noticed as an enterpreneur focused on solutions for retail. The trends they highlight are:

1. Focus on Image: Retailers seem to move away from marketing their stores as sources of discounted items and more as 'lifestyle's. I can understand when Federated Department Stores (holders of Macy's and now Marshall Feilds) does this, but when Wal-Mart (traditionally focused on selling products at the lowest prices) puts in their efforts to siphon away customers from Target (stores focusing on 'Cheap Chic'), I am a little surprised. Does this mean less discounts? and more focus on better looking stores? I shop at both WalMart and Target - based on what I am out to buy. I love being at Target, but I go to WalMart when I need some branded commodity that won't have any difference in quality regardless of where I buy it from. Would I want a Target-like experience at WalMart? - NOT, if they are going to raise prices. I am not sure if WalMart can really give me the 'image' Target gives me. Maybe I'll be proved wrong - after all, I'm not the one with a $210 Billion market cap.
2. Consolidation: Lots of M&A activity going on. Federated's purchase of May Department Stores has combined the Macy's, Bloomingdale's, Marshall Field's, Lord & Taylor and Filene's department-store chains. Private-equity firms took private Neiman Marcus Group Inc. and Toys "R" Us Inc. in separate deals. Upscale retailer Saks Inc. has sold parts of its empire. And grocer Albertsons Inc., battered by Wal-Mart's storming of the industry, has fielded a bid from Kroger Co.
3. New building styles: Builders have realized that consumers are tired of those million square feet malls and focusing on building lifestyle-centers, or retail districts, which combine office space, retail, residential and open spaces. I like the way these look - sort of like the University Village project at Chicago's UIC college area. But somehow I feel that these might be more popular in areas where the weather is a little bit warmer. Woodfield mall in Chciagoland is certainly a nicer place to shop this time of the year - one huge warm mall with all the stores you would need for the holiday season.
4. Value added services: Its true, retailers like Best Buys are kicking butt with their value added services - product insurance, extended warranties, Geek Squad and other installation services. For a technologist, I am surprised by the amount of money people are willing to pay for Geek Squad - computers seem so easy to me. But on the other hand, when I think of the amount of money I put into getting mechanics to service my car or chang the oil, I can understand why someone would be willing to pay a premium for something they don't understand all that well. Feeding on fear of the unknown is what these value added services are - but I suppose thats what the whole idea of value added pricing is all about.
5. Something for Everyone: Retailers are focusing on stores dedicated to various genres of customers - categorized based on economics, age, etc. Gap Inc., a pioneer in the trend of multiple store concepts with its Gap, Banana Republic and Old Navy chains, this year unveiled Forth & Towne, an apparel store aimed at women over 35. The Abercrombie & Fitch brand for its core teen shoppers, Hollister for high-school shoppers, Ruehl for college and postcollege shoppers and Little A for kids. I can relate to this. I love shopping for deals at The Gap.
6. Going Private: Some retails seem to want to go private, for pricing reasons. Private-equity firms took private Neiman Marcus Group Inc. and Toys "R" Us Inc. in separate deals. Is the increasing overhead of government checks such as Sarbanes-Oxley a reason for this?
7. Retail-tainment: Making shopping fun? Retailers such as Dick's Sporting Goods have features such as climbing walls, Niketown stores have professional atheletes come for autographing sessions, and even Wal-Mart (with the recent promotion of John Menzer, former CEO of Wal-Mart's international division, to vice chairman of its U.S. stores) may try to replicate their success with retailtainment in other countries in the US. Wal-Mart in China has fashion shows, computer contests and even shrimp catching contests.
8. Moves into media: Some retails have started publishing their own magazines or sponsoring related TV-shows. Home Depot sponsored TLC's 'Trading Spaces' is a classic example.
9. Going Solo: Retailers are moving out of traditional malls and into strip centers and lifestyle centers. Why? - becausing of decreasing mall traffic and ease of resuplying (because they have a dock at the back). I like this trend because this increases the number of stores accessible to a neighborhood and we don't have to drive miles to reach the closes mega-mall. Now that I have a strip mall with a Target, Marshalls, Pier One Imports, Payless Shoestore, Panera Bread, Chilies in my neighborhood, I don't feel like I am living in suburbia, where I need to drive for 20 minutes to reach the closest store.
10. Focus on customer information: Maybe CRM vendors would party at this. But, retailers are increasingly using the information they gather about customer purchasing behaviour to provide better promotions and focus their sales pitches to customers. Retailers like Kroger respond to Wal-Mart's grip as the largest US grocer, by improving discounts for repeat customers.