Department Stores’ Decade Of Decline
Oct 07, 2020
The heyday is over. The question for department stores now is whether there will be a new day. Certainly, the pandemic has made that already sticky question all the more difficult to answer. But many retailers in the space had been trying. Early this year, for example, Macy’s inched toward rehabilitation as it outlined plans to get away from so many enclosed malls, close more than 100 stores and improve its private labels. Late last year, Nordstrom made strides executing its vision for a 21st-century department store when it put the finishing touches on its retail ecosystem in New York City. Now, forced to institute layoffs and take on new debt, they and many others are just hoping to hang on through the holidays. Read more at Retail Dive.
The department store has been in decline ever since the consolidation, when Macy’s took over so many chains, that were Federated. The American department stores need to look at some of the overseas stores. In downtown Frankfurt there are thriving department stores. Sogo, is a great store with all the branded boutiques. They are still full line stores, with toys, stationery, fresh food, pens, and several other departments that the U.S stores got rid of years ago, so they could make room for more clothing, because of the higher margins. There is more to margin than just a percentage, there is also actual margin dollars. Department stores were a great place to spend hours and were looked upon as bringing new products to market. The buyers at these department stores aren’t doing their job, because they won’t even look at new products.