the
innovative LEDGER
An e-Newsletter from The Innovative Edge™ Inc.
Vol.
7, No. 2 - February 2007
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A
Basement's Come-uppance?
By Jeff Govendo
Last
month after an appointment in downtown Boston I decided to stop at
Filene’s Basement, just a block from where I was. I hadn’t
been there in a few years, and was curious to see if it still looked
and “felt” the same, particularly since its original parent
store, Filene’s, Inc. (from which it had long been a separate
company), had been shuttered following its purchase by Federated Stores.
For
those who may not be familiar, Filene’s Basement is the original
“automatic markdown” discount store in America. For
over a century, men and women have been going there to find brand
name and designer clothing at steeply discounted prices. Many go just
to take in the specter of otherwise perfectly respectable citizens
wildly groping through bins, shoving each other to get at items, and
trying on all manner of garments (both mentionable and unmentionable)
in the middle of the aisle. Along with Old Ironsides and the Freedom
Trail, it has long been one of Boston’s biggest tourist attractions.
Besides
the rather thin crowd and sparse inventory (I didn’t find a thing
I wanted), what I noticed were signs posted prominently declaring,
“Still open, and here to stay!” presumably to reassure people
that the closing of Filene’s would have no impact on the Basement.
The very next day, in front page news, it was revealed that the
Basement would be closing next fall for up to two years while the
Downtown Crossing area in which it is located undergoes major reconstruction.
Clearly caught by surprise, the mayor expressed his consternation
over the anticipated blow to Boston’s tourist trade. What
is not being expressed, but no doubt on the minds of city officials
and traditionalists throughout the region, is the concern that the
Basement will never re-open, or have the same funky cachet if it does.
The
response to this announcement is reminiscent of how many of us react
to change in long-standing institutions and practices. Plainly
stated, we don’t like it, and tend to resist. The fact is, Filene’s
Basement, a true innovator years ago, has long ceased to be the unique
retailer it once was. The bulk of its stock isn’t even on automatic
markdown; rather it’s just plain old discounted merchandise,
a model done better by many newer chains. Despite this, we want
to cling to the belief that something that has worked well over a
long period of time will always work well, ignoring or denying an
increasing body of evidence to the contrary.
One
can find examples of this in other industries as well, perhaps most
visibly right now our domestic car companies which are being eclipsed
– one by one – by newer, more nimble Asian competitors.
There’s been no shortage of reasons given for this: healthcare
“legacy” costs, dumping by foreign manufacturers, union
vs. non-union pay scales, and others. But behind it all was a belief,
not too long ago, that the domestic companies’ pre-eminence could
never be challenged. That they had dominated the markets so long,
they always would. No need to change if you think you’ll always
be on top.
It
will be interesting to see if, in fact, the Basement does return,
and if so, what incarnation it will take. I wouldn't be surprised
if it comes back a substantially different entity, appealing to a
new generation of shoppers with different tastes and behavior.
Like
those who prefer to try on new clothes in a dressing room.
