America’s Department Stores, Cornerstones In Fashion, Could Be In Their ‘Last Stages’
The coronavirus pandemic is shining a light on U.S. department stores’ dependence on selling fashion and their delay in adapting to today’s retail environment. Not only are a number filing for bankruptcy, but some, including the oldest in the nation, are liquidating entirely. One by one, the categories that have defined department stores for decades have been seized by other types of retailers. Big-box chains Walmart and Target have acquired the value shopper. Best Buy and Amazon reign in electronics. The likes of Home Goods and Wayfair have become top-of-mind destinations for home furnishings. And Williams-Sonoma has sealed a place for itself in kitchens, for its high-end appliances and cutlery. Fashion seemed to be the one stronghold department stores had left. For a while, that was enough. But not anymore. Read more at CNBC.
The department have themselves to blame for a lot of their troubles. They continuously narrow their assortments and departments. They forget about the customers over 40, that have real money to spend. The young customer that they continue to pursue, have different shopping habits. When I go overseas, I love the department stores in Germany and Hong Kong. Frankfurt Germany has 3 major department stores downtown. They are true department stores. They carry toys, all year round. They have pen/stationery and office supply departments. SOGO out of Japan is a great store while being very upscale to luxury. Many departments are offered in overseas stores that the U.S. stores gave up long ago, as they saw higher profits in fashion. Fashion can be a hit and miss business. Have you seen their kid’s clothing departments lately. The girl’s clothing looks like something a hooker should buy. Stores in the U.S. won’t try specialty brands to enhance their assortment. There is a lot of great products on the market, but buyers won’t even look at, because they are not a major well known brand.