ICYMI – Week of September 15, 2017

  • Harbinger of a shift in automobile retailing and of the future of malls? With Tesla and car-sharing challenging what owning a car means, the traditional car manufacturers have had to get creative. In the latest – Mercedes is opening up “Mercedes me” stores in malls around Canada.
  • Speaking of redefining retail – Apple announced it is going to start referring to stores as “Town Squares” in an effort to turn their commercial locations into broader gathering places and “communities.”
  • Bloomberg short-lists the likely locations for Amazon’s HQ2 to six cities, with the caveat: “five could be eliminated by politics” (spoiler: five of the six cities are in the US, the sixth is Toronto). It’s a compelling argument considering Toronto actually meets the qualifications easily, though I’m not sure how Toronto’s incentives stack up against those of US cities. An interesting counter-argument was proposed by City Lab: how will Amazon employees deal with Ontario’s foreign-buyer’s tax? I don’t foresee this as a major issue, though, as a bigger chunk of that 50,000 workforce would be Canadian.
  • Meanwhile, tech┬ácompanies are happy to pay premium rents in order to be closer to talent, upending traditional notions of lower-rent seeking as costs of labour for technology and professional services continue to grow as a share of operating costs.