The strategy behind turning department stores into warehouses

RetailDive

Rumors are circulating about Amazon converting vacant department store space into fulfillment centers — a move experts say would round out its omnichannel approach

Department stores aren’t going away, but 3 big things still need to happen

Steve Dennis

It’s been a long, slow slide for department stores. In addition, Sycamore looks to be picking at the carcass of Bon-Ton Stores and Lord & Taylor is selling its iconic Manhattan flagship to WeWork. For many, this unrelenting parade of bad news leads them to believe that department stores are toast. But just as the retail apocalypse narrative is nonsense , so is the notion that department stores are going away.

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Macy’s Returns to Profitability in Q4 Despite Same-Store Sales Dip; Digital Grows 21%

Retail Touch

Macy’s Q4 and full-year 2020 results show signs of a turnaround for the department store, hard hit, like many of its counterparts, by the COVID-19 pandemic. The increasing prominence of digital reflects the company’s “Polaris” omnichannel transformation strategy.

Kohl's Q2 digital sales spike nearly 60% amid omnichannel push

RetailDive

CEO Michelle Gass went so far as to say that the department store is poised to take market share in the COVID-19 era, despite its difficulties

Neiman Marcus Supports Luxury Focus with New Hires, Increased Supply Chain Investment

Retail Touch

News Briefs Bergdorf Goodman Bob Kupbens Department Store digital retail luxury retail neiman marcus Neiman Marcus Group supply chain investment

Inside the Overlap Between Omnichannel and Personalized Experiences in Retail

Sailthru

As the world’s largest retailer and online retailer go head to head in a battle of Goliath and Goliath, one thing is clear: Omnichannel has become the white whale for retailers. How can a brand master the omnichannel experience? The research firm graded the brands based websites, store locators, fulfillment, ecommerce, email, mobile, and social media. Leader brands are lauded for making discovery effortless and sync local store inventories to checkout pages.

‘We are in the Business of Emotions, Not Transactions’: Exclusive Q&A with Neiman Marcus Group CTO Bob Kupbens

Retail Touch

As the department store sector aims to reinvent itself for retail’s digital age, iconic retailer Neiman Marcus Group (NMG) is investing rapidly in technologies that will elevate its integrated luxury retail strategy across all channels.

How UNTUCKit Scales Workforce Empowerment While Ensuring Chainwide Consistency

Retail Touch

Workforce engagement and empowerment have come to the forefront, especially as more retailers struggle to build up their store headcounts. Specifically, the direct-to-consumer (DTC) menswear brand has implemented YOOBIC across all of its stores.

Macy’s Shakes Up Senior Leadership, Eliminates COO Role

Retail Touch

Macy’s has announced a series of changes to its senior leadership team, including the elimination of the Chief Operations Officer role, as it moves forward with its “Polaris” omnichannel transformation strategy.

Sephora Plans 260 New Stores for 2021, Including 60 Freestanding Locations

Retail Touch

Sephora is continuing its move away from malls with the announcement of the largest store expansion in its 21-year history in the U.S. More than 260 new stores are slated to open this year, including 60 freestanding locations and 200 shop-in-shops inside Kohl’s department stores.

Nordstrom Takes Stake in Topshop Brands, Launches Joint Venture with ASOS

Retail Touch

department store chain and British online retailer aim to “redefine the traditional retail/wholesale model.”. For example, customers will be able to pick up Asos.com orders at Nordstrom and Nordstrom Rack stores beginning this fall.

NRF 2021: Learning from Nordstrom, Target and Others’ Best-in-Class Customer Experiences

Retail Touch

The power of connected commerce became even more apparent over the course of the COVID-19 outbreak, with buy online, pick up in-store (BOPIS) and curbside services exploding in popularity. and narrowed it down to 28 and then 12 outstanding omnichannel companies.

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The Need for Delivery Speed Drives Holiday Hiring

Retail Touch

Seasonal hiring provides a window into retailers’ priorities, and 2020 demonstrates both the COVID-19-powered growth in ecommerce and the need to operate stores and supply chains safely. Ecommerce execution will lean more heavily on store-based fulfillment. Relieving Pressure On Stores.

Further Evolutions In Retail: All In For Experiential Retail

Retail Touch

Already challenged with diversifying against an e-Commerce alternative, stores have now lost their one remaining hook as shoppers are unable or unwilling to venture in. What are local stores doing to stay viable? It is hard to imagine a worse time for brick-and-mortar retail.

How Retailers Can Control Costs Even As Return Rates Climb

Retail Touch

In the wake of COVID-19, returns are receiving serious (and necessary) attention for several key reasons: Retailers are spending more processing returns in stores. Return rates at physical stores range from 8% to 10% , but rise to approximately 20% for e-Commerce, according to data from CBRE.

What To Do—And Not Do—To Attract Generation Z

Omnisend

Or, the value-add could be along simpler lines, like buy online, pick up in store. But they also appreciate the in-store experience, as 81% like shopping at brick and mortar stores. Then they’re going into the department store. Popular Omnichannel Marketing

The Future of the Mall: Why Developers are Rethinking Everything from Tenant Mix to Events and ‘Adjacencies’

Retail Touch

That means more consumers are venturing out into the world — and going back into stores. Besides Apple , we have sought out and opened stores with Yeti , Peloton and Casper , among others.”. More than 163 million people in the U.S.

Q3 2020: Walmart, Home Depot Stand Strong as Macy’s and TJX Seek Digital Turnarounds

Retail Touch

While news of potential COVID vaccines has many retailers anticipating a return to in-store shopping in 2021, this year’s Q3 financial results show that consumers’ hunger for ecommerce shows no sign of being sated. Leveraging the store base, which numbers over 5,400.

Holiday 2020: Why Target Soared While Nordstrom Faltered

Retail Touch

Even brick-and-mortar stores fared decently overall, with average sales up 3.6% There really wasn’t any feasible way for folks to queue up on the night of Thanksgiving and then obliterate stores on Friday at 5 am. Retailers With an Omnichannel Lead Flexed it During Holiday 2020.

Kohl’s, Sephora Partner to Launch 850 Store-In-Store Shops, Exclusive Online Offerings

Retail Touch

Kohl’s will put Sephora in charge of both its physical and digital beauty departments as part of a new long-term strategic partnership. Following the initial 200 locations, the retailers plan to expand the concept into at least 850 stores by 2023.

Four eCommerce challenges from 2019 and what we can learn from them

PFS

The demand for omnichannel fulfilment. In fact, department stores offered more flexible delivery, collection and returns promises in 2019, with 88% offering click and collect services and more than half (54%) enabling shoppers to name their delivery day [1].

7 tips in the fight against Amazon

GetElastic

Companies like Amazon and other big-name department stores ultimately reign supreme when it comes to ecommerce. Omnichannel Commerce B2CIn 2018, over two-thirds of American households had an Amazon Prime membership. While it’s true these giants hold a big portion of the industry, there are still gaps in service and products that need to be filled. More importantly, there’s a lot we can learn from studying these ecommerce giants. Source: Pexels. Customer Pain Points.

Costco, Nordstrom And Abercrombie Results Showcase Retail Fortunes Across Three Verticals

Retail Touch

Q1 2020 financial results for Costco , Nordstrom and Abercrombie & Fitch encapsulate how three retail verticals — club, department and specialty apparel — are weathering the COVID-19 pandemic. The declines were attributed to store closures, though the retailer has reopened about 40%.

Activist investor wants Macy’s to spin off its e-commerce ops

Retail Wire

Jana did not disclose its stake in the department store retailer. Macy’s did not respond favorably to the recommendation, claiming that it is focused on providing its customers with a “dynamic, seamless omnichannel experience.”. Jana Partners wants Macy’s to follow the lead of Sak’s and spin off its e-commerce operations from the rest of the business.

Post-COVID Shopping Center Strategies: ‘Digital Districts’ and Landlord-Tenant Collaboration

Retail Touch

While digital sales skyrocketed in 2020, the similarly large spike in store-based fulfillment showed that stores are still a vital part of the equation. They wanted to get out and didn’t linger in stores, or walk around aisles or window shop.

Store Reopenings: Why Retailers Must Go Above And Beyond To Bring Shoppers Back

Retail Touch

Shoppers have slowly begun to accept brick-and-mortar’s return: 22% have increased their willingness to set foot into a grocery store or pharmacy since March, according to data from Resonate. of consumers say they will feel most comfortable shopping at standalone specialty retail stores.

Retail’s Great Awakening: Snapshots Of Global Retail Response To COVID-19

Retail Touch

This Retail Store Tours China video from March in Shanghai shows the conditions in China at that time. As the pandemic rapidly emerged and tightened its grip on Asia, stores, restaurants and shopping centers closed. New Zealand had its biggest store opening in Auckland two weeks ago.

2020 VALENTINE ECONOMICS AND GROWTH PERSPECTIVE FOR JEWELERS LOOK LIKE A DIAMOND IN THE SKY

RETAIL MANAGEMENT SOFTWARE

ChainDrive’s inventory management technology not only powers and empowers retailers and brands to connect their e-commerce platforms to brick and mortar stores, it gives them all the necessary munitions to satisfy and exceed their convenience expectations on-time, on-budget and on-target.

2020 VALENTINE ECONOMICS AND GROWTH PERSPECTIVE FOR JEWELERS LOOK LIKE A DIAMOND IN THE SKY

RETAIL MANAGEMENT SOFTWARE

ChainDrive’s inventory management technology not only powers and empowers retailers and brands to connect their e-commerce platforms to brick and mortar stores, it gives them all the necessary munitions to satisfy and exceed their convenience expectations on-time, on-budget and on-target.

Why alternate fulfillment models are critical for creating a good ecommerce experience

Kibo

Retailers have come a long way in improving the customer experience for shoppers, focusing on personalization, omnichannel shopping experiences, and better overall customer relationship management. The importance of omnichannel fulfillment.

How Innovative Partnerships, Business Agility and Verticalization Can Revive Brick-and-Mortar Retailing

Retail Touch

Bankruptcies and store closures are, unfortunately, ongoing features of the retail ecosystem. In its latest US & UK Store Openings & Closures report, Coresight Research reported that U.S. With store closures, brands and retailers have had to bolster their omnichannel strategies.

2020 VALENTINE ECONOMICS AND GROWTH PERSPECTIVE FOR JEWELERS LOOK LIKE A DIAMOND IN THE SKY

RETAIL MANAGEMENT SOFTWARE

While Department stores are the ones to get the highest traffic during Valentine’s Day (36%), followed by discount stores and online shopping (32%), specialty stores are expected to grab 19% of shoppers, whereas local small stores stand at 15% followed by clothing stores and jewelry shops tied at par with 11% of intentions.

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THE REGENERATION OF BRICKS AND MORTAR RETAIL

PFS

As a number of retailers shut up shop, an influx of brands that had previously only existed online are now turning to bricks and mortar stores to provide their customers with a unique and tangible shopping experience. Just this year, eCommerce giant Amazon opened its third UK pop-up store in Scotland , whilst Los Angeles-based womenswear brand Reformation announced it will unveil its first UK store in London.

Retail Trends: Going Cashless

OrderDynamics

Ever notice the number of gift cards available at the department store? Philadelphia recently made headlines by banning cashless stores and restaurants by summer 2019. Even as we step in that direction, cash still has its place in many physical retail stores. Thought Leadership cashless omnichannel retail strategy retail trendsRetail Trends: Going Cashless. Five years ago, you had a total selection of three to five options.

Saks.com Spin-Out: Genius Move or Opportunistic Folly?

Steve Dennis

The Bay has long suffered from the woes of unremarkable department stores. While the details are scarce at this point, HBC suggests that through some sort of cooperative arrangement, Saks.com and Saks’ brick-and-mortar-only company will help each other on “omnichannel” service.

The Matryoshka Trend: Breaking Down the Rise of Retail’s “Russian Dolls”

Retail Touch

As the world reopens in full force amid COVID-19 vaccination efforts, brands seek new ways to turn customers’ in-store experience into something that not only makes them feel safe but keeps them coming back and staying longer. The nested store becomes an experiment in demand generation. .

The ABC’s of eTail East 2019 Takeaways: AI, Bankruptcy, Channels, and Data

Zaius

Amid recent news that the luxury department store has filed for bankruptcy , it’s no surprise that some of the questions in the keynote fireside chat hit hard, notably Bloomberg reporter Kim Bhasin’s asking, “So, what’s going wrong?”. Barneys Chief Digital and Technology Officer Katherine Bahamonde Monasebian expertly handled questions, saying it’s easy to blame Amazon or say millennials are killing department stores, but it’s actually the confluence of a lot of different factors.

Purina Pilots Interactive Endcaps in Pet Aisles of 200 Supermarkets

Retail Touch

Seeking to provide the same depth of product information that’s available online in a brick-and-mortar environment, Purina has partnered with Perch to create interactive endcaps in the pet sections of 200 Meijer stores.

Retailers, Is The End Near?

OrderDynamics

Retailers and restaurants are opening 4,080 more stores than they are closing, and retail sales through July 2017 are up over $121.5B Mass merchandisers, convenience stores and supermarkets are leading net store growth. However, specialty soft goods and department stores are experience the most closings. The initiatives are: Improve the Experience : With the prevalence of online retail, consumers need a good reason to come to your store.

HBC Splits Saks OFF 5TH Into Online and In-Store Businesses — a Path Other Brands May Follow

Retail Touch

The department store retailer took a similar route by dividing Saks Fifth Avenue into distinct ecommerce and brick-and-mortar companies — a move that could become a trend among apparel and specialty retailers.

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