What Should Department Stores Do Now?
It’s no secret that being a department store is harder than it used to be. Before everything was available on a smartphone, it made sense that aggregating lots of products in one place would be a unique offering. With the way things are sold now, what should department stores do to compete? Think small. In the past, retailers talked about ever-increasing store sizes and broader arrays of products. The familiar refrain was, ‘If I had a bigger store, I could sell more stuff.’ That’s over. Having focused collections of relevant brands will motivate consumers. The idea of carrying primarily brands that are available worldwide is an old idea that offers very little to draw consumers in anymore. Think risk. In the past 20 years, retailers have tried to scale back their commitment to inventory purchases and when they do, they insist on guaranteed margins from vendors, and only committing to inventory that is certain to sell through to consumers. That makes stores homogenous and boring. Retailers need to take chances to succeed now. Read more at Forbes.
