It's been a long, slow slide for department stores. Starting some two decades ago, the major chains began leaking share to the big-box, off-the-mall players. Just as that started to stabilize somewhat, Amazon and other e-commerce pure-plays began chipping away at the sector's once dominant position in apparel, accessories and home products. Most recently, in addition … Continue reading Department stores aren’t going away, but 3 big things still need to happen
At the recent inaugural ShopTalk Europe event in Copenhagen, Hudson's Bay Company CEO Gerald Storch posited that retailers risk hastening their demise by taking an axe to their store counts. Clearly there are many factors that contribute to a brand's march to the retail graveyard, yet there is mounting evidence that Storch's observation is on the money. As I've … Continue reading Are mass store closings the start of an inevitable downward spiral?
Some love the "retail apocalypse" narrative. It's great clickbait, makes for captivating keynote speeches and gives consultants a hook to peddle complicated strategic frameworks. Alas, it's mostly nonsense. Physical retail is definitely different, but it's far from dead. The fact is plenty of new stores are opening, many traditional retailers and -- I hope you are sitting down … Continue reading The Retail Apocalypse And The Urgent Quest For Remarkable
Last week we had five major department stores report their quarterly earnings: Macy's, Kohl's, Nordstrom, Dillard's and JCPenney. It was a decidedly mixed bag relative to both expectations and absolute performance. Yet many observers seemed encouraged by the overall improvement in sales trend. Yet the overall sector is still losing market share, just not at quite as fast a rate. Which begs … Continue reading Department store quarterly performance: Better isn’t the same as good
While the "retail apocalypse" narrative is nonsense, it's clear that we are witnessing a major contraction in traditional retail space. Store closings have tripled year over year and more surely loom on the horizon. The "death of the mall" narrative also tilts to the hyperbolic, but in many ways it is the end of the mall as we know … Continue reading Honey, I shrunk the store