No one has to say that economic times are tough, it’s all over the news and it’s in every conversation taking place out there.  I personally see a trend forming in the retail markets that I predict were long in coming and this economic downturn was simply a catalyst for a change that was already on it’s way.

Shopping malls are changing.  Have you noticed?  More and more malls are losing stores as they close up and leave.  Store owners no longer wanting to keep their doors open just so they can pay the exorbitant rents being charged by the mall owners.  Many, like Big Dogs and others, are changing their business model to keep up with today’s world and the demand.  No longer can speciality stores and small businesses afford to keep expensive store fronts open and still make a profit worth staying in business for. 

Frankly, the market and the philosophy for retail marketing is changing to one of “adapt or die”.   I foresee shopping malls continue to thin out to the point of non-existence in some cases.  Small businesses, especially specialty shops, if they are smart, are packing up and going to an on-line model.  Some are closing all but their most key stores and refocusing their business model on their on-line business as their source of income.  As well they should, customer bases are changing.  From what I have heard on the radio, television and print, consumers have been shifting to on-line shopping methods for many reasons, convenience and price being the biggest two.

One of the biggest problems I see facing many shopping mall owners and the loss of their paying rental/leasing base is their failure to face reality.  Many property owners of malls and strip malls and even office space are not changing with the times fast enough or are changing when it is too late.  Not negotiating with your tenants when times are as tough as they are now is just BAD BUSINESS!  

The alternative to many of these small businesses to not getting their rent/lease reduced is to simply close up shop and go out of business.  Some simply go elsewhere where the rent/lease is more reasonable.   The problem for many of these property owners is they realize too late that they need to negotiate with their tennants much earlier than when they hit hard times and the tennant comes to them.  If the tennant is coming to you asking to renegotiate their rent, they are most likely already having financially rough times and are in most cases likely to not survive them.

For longer term success, the landlords should approach their tennants early in the process, offer them a break during these hard times and help them stay in business longer.  In the long run, it helps both parties out and helps the tennant stay in business and the landlord is able to get some form of revenue for the property.   Landlords need to face the reality of the concept that “the more open space you have, the harder it is to attract new tennants” and “a tennant paying something is better than a empty store front paying nothing”.

I have lived in Oxford, Michigan since 2001.  In my eight years of living here I can say I have seen stores come and go, some of them in the exact same spot.  Landlords need to stop thinking “I have premium space” and instead think “I need stability” for both their future and the future of their locale.  No offense to landlords in Oxford but, get real!  You can’t expect new businesses to open, rent expensive space from you and expect them to stay in business long.  Most businesses need time to get going, make money and become known.  If the new business is already dying before anyone knows they are there, they have absolutely no chance at success and exorbitant rental rates and leases do not help at all.  It might be a short term gain for you but it is a long term loss in the end.

This by no means to limited to Oxford, it is happening all over the place.  Great Lakes Mall is a great example.  I have been living in the area long enough to have seen GL open and saw how vibrant it seemed to start out.   Very shortly after it started I noticed a number of stores that had closed up within the first couple of years.  In going there now (2009) I have observed even more empty stores with many more stores displaying “clearance” sales and “going out of business” sales. 

I by no means can tell you how much store owners are being charged for rent at GL, but I will make one observation; whatever they were/are charging, it’s too much and if you don’t change your business model, you may find yourself with a mall full of empty storefronts.  The more stores that close in a mall, the less attractive the mall becomes, the fewer people go to it and the fewer new businesses want to take a chance with opening a store there.  Squeezing more out of those who remain is no way to stay in business and no way to keep tennants.

Ok, I’ve had my rant.  Landlords, you need to get real, you can’t keep charging the rates you are and stay profitable in the long run.  But hey, I’m an information technologies guy with my specialty areas focusing around the web, by all means, push more businesses to an all web-based model to do business.  You are definitely helping out people like myself in the long run because don’t be surprised when there are no more mega malls.  Sure, there will be stores out there still, where people can try on the clothes before they buy them, but please make sure you are taking stock in how many of your tennants are specialty stores who could probably do better with an on-line model and no store front to pay high exorbitant rents for.

Oh, by the way, landlords, it only costs a store owner approximately $100-$200 per year to host an on-line store front, and another couple thousand PER YEAR to have someone manage it for them.  Think about that the next time you want to raise a tennants rent to compensate for the tennants you’ve lost because rent was unreasonable.

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Let me first say, this, like any other blog (usually) represents my opinions and experiences only. 

So, who wins when AT&T’s Yahoo DSL software is loaded on a PC and mistakenly installed on top of an existing Virus Scanner or Firewall product?  I will tell ya, no one!  I have encountered countless customers like the one I saw last night who installed the AT&T Yahoo DSL software over top of an existing set of software products only to be left with a non-functioning PC.  Not until the AT&T software is removed and all other protection related products are properly removed can you get by the problem and start connecting to the Internet again.  My recommendation; don’t load the AT&T Yahoo DSL software at all.  Here’s why:

Basically you need these main components when thinking about protecting your computer at home:

• Virus Scanning 
• Spyware Protection
• Web Browsing Control and/or Pop-up Blocker
• Firewall
• Parental Controls

I will explain each of these areas and my recommendation on how to cover the need. 

Virus Scanning

Virus scanning is critical, if you don’t purchase any other software, make sure you purchase virus protection!  There are just far too many dangers out there in Internet land and all of them can cost you dearly.  If you do not want to spend any more money (because you just bought that new PC) use the one AT&T Yahoo DSL provides you.  You could alternatively use the virus scanner which typically comes with your computer when you first buy it.  However, my recommendation is that you pick up a suite of products which includes a virus scanner.  I have used most of the products out there and I personally and professionally keep coming back to Trend Micro’s product called Internet Security Suite.  Another good product to take a look at is AVG by Grisoft.

Spyware Protection

Ok, increasingly, browsing the Internet has become more and more dangerous.  Browsing the Internet without both the protection of a good virus scanner AND a good spyware detection and prevention tool is like being sexually promiscuous without any protection whatsoever.  You’re asking for trouble.  Not only will Spyware Protection keep you out of trouble, it will make your web browsing experience more pleasant overall.  Anyone who has been bogged down by spyware will tell you that it is no fun due to your computer coming to a complete crawl and essentially becoming useless.  In most cases as a consultant, I tell clients, “let’s get the important data off safely and reformat” due to the difficult nature of attempting to completely remove spyware from an infected machine.  It takes less time to reformat and start over than it does to troubleshoot and remove all cases of spyware on a PC.  Again, Trend Micro’s Internet Security Suite does an excellent job of this.  There are other tools also such as Adaware from Lavasoft that also do a good job. 

Web Browsing Control and/or Pop-up Blocker

Today Internet Explorer 7 and all of the susequent security patches do a pretty good job of protecting against pop-ups and other “phishing” attempts.  What Internet Explorer alone cannot do is protect you from going to web sites with let’s just say “bad reps”.  Sites which have a history of either questionable content or questionable practices.  There are products out there that can watch where you surf and warn you when you’ve landed on a dangerous page.  Again, Trend Micro’s Internet Security Suite does an excellent job of this.   If you do a lot of browsing and researching on-line, getting a product such as this will save you MANY future headaches.

Firewall

Ok, here’s where things get interesting.  A firewall is essential these days.  Not using one is like leaving the front door of your house wide open in a bad neighborhood while you go away from vacation.  You wouldn’t do that so why on earth would you not use a firewall.  Now, Windows XP comes with a firewall which is usually activated when Windows is intially set up.  This firewall is very effective for most people’s needs.  Companies will try to scare you into thinking you need more but you really don’t.  In addition to Windows having a firewall built into the Network Card (NIC), most people who use AT&T Yahoo DSL have a 2wire modem/wireless router.  This router has a firewall capability built into it which is usually turned on by default.  One note about this router, in your advanced settings you have the option of Stealth and not to respond to Ping, I highly recommend turning on these features.  They keep someone from finding your computer/router on the Internet by pinging you. For the most part, you do not need to concern yourself with purchasing a firewall if you utilize one of these methods for a firewall to begin with.  Most router/gateways available today provide the ability to work as a firewall for you.

Parental Controls

If you do not have children you don’t need the parental controls!  If you do have children and you would like to keep an eye on what your kids are into, the Parental Control product from AT&T Yahoo DSL will do the job, however, I have seen more problems with it than solutions provided by it.  Try some other products instead.  Try IAM Big Brother, it does a good all around job of keeping track of your children’s activities.  Another good choice is NetNanny which has been a long time favorite product of many parents I have met.

So, in the end, my recommendation is this; if you want free products and the potential problems that come with it, install the AT&T Yahoo DSL software.  In my opinion it produces more problems than it solves.  This is my opinion however, others may feel differently.  It is also my opinion that in the long run, you are better off purchasing a tried and true solution that works well and is supported well.  As I have already said, I can highly recommend Trend Micro’s Internet Security Suite.  Time and again it has well proven its value in all of the above categories except the parental controls.

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