Department Store Turnaround Is Staked On E-Commerce
Department stores are outpacing wider retail in transacting 22% of their total sales online — compared with closer to 13% for the industry as a whole, according to a new report on the sector emailed to Retail Dive from Moody’s Investors Service. Different department store retailers are taking different tacks to bolster digital sales, according to the report. For example, those with high average unit retail (like Nordstrom and Neiman Marcus) offer no-minimum free shipping and returns, while midpriced operators (like Kohl’s and J.C. Penney) require higher basket sizes, Moody’s said. These shifts are crucial but pricey, as the retailers face steep investments in their supply chains — Moody’s sees Nordstrom as the only one reaching an inflection point there — and in their mobile capabilities, according to the report. Read more at Retail Dive.