The once powerful department stores that anchored malls and streets around the world are now a failing concept.
From Debenhams to HoF, Macy’s to Barneys New York, and Sears to JC Penney, the list of department stores that have declared bankruptcy, shut multiple stores, or have been running in losses is long. And it’s not just Covid-19 or the e-commerce boom that can be blamed for it.
“The concept of department store is beginning to fail whether it is the UK high street, or 5th avenue in the US,” said Jayant Ganwani, CEO of Lals Group.
In 2011, US department stores employed 1.2 million employees across 8,600 stores, according to estimates from the research firm IBISWorld. But in 2020, there are now fewer than 700,000 employees in the sector, working across just over 6,000 locations. The pandemic saw more sales declines, lay-offs, and store closures so these number would’ve shrunk further now.
But why are department stores dying, despite the ease and convenience of the one-stop-shop that people once lauded?
“Department stores do not give the brands the identity that they want. Consumer brands have come back to realise that in a department store they don’t capture enough data, consumer’s journey, loyalty etc.,” he explained.
“In Dubai, every brand has a boutique of their own and they end up being present in a department store. Sometimes it’s counterproductive and duplicant.”
However, by far, department stores were the best collaboration between retailers. Considering the business model isn’t working anymore, the industry will have to think of new concepts and innovative ways to work together.
“I think we are going to see in the future where like-minded retailers that offer complimentary products to each other, collaborating to create larger retail experiential environments. I think a superstore that has complimentary products by three or four retailers would work,” he said.
“I think it would translate into better rentals for people, more staff efficiency, and common marketing platforms. You don’t need a marketplace for everything. If you have a good enough operator that has everything in a single journey, that would be idea,” he concluded.
Landmark Group held its 12th Beat Diabetes event on Friday, 26 November, atNovember 29, 2021 | By RetailME Bureau
Zebra Technologies Corporation, an innovator at the front line of business withNovember 17, 2021 | By RetailME Bureau
UAE gears up to celebrate this year’s National Day celebrations in the
UAE-based Etisalat Group has signed an agreement with elGrocer, a leading online
Amazon.ae announced that the 11.11 sale is back once again this year
Abu Dhabi Cooperative Society’s COOP City store is now open in Lake
Union Coop, a consumer cooperative in the UAE, revealed that 78% of
Union Coop has opened its 23rd branch within the UAE in Jumeirah
Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and
UAE-based Al Maya Group announced that it will be boosting import of
UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu
UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand
Locally owned supermarket Spinneys celebrates 60 years of doing business in the
UAE-based Carrefour will become the first retailer in the region to offer new levels
The festive shopping season represents a significant portion of retailers’ annual revenue,
Zebra Technologies Corporation, an innovator at the front line of business with
There is a large trust gap between shoppers and retailers, according to
Noon.com announced its biggest ever Yellow Friday Sale running from the 22nd until 28th November. The
Market research and data analytics firm, YouGov has revealed the top-ranked retail
After returning from World War 2, a man decided to go into
More than a third (37%) of UAE consumers would rather switch retailers
A global survey conducted by Foresight Factory, released in partnership with Snap,
The Ministry of Human Resources and Social Development in Saudi Arabia has
China’s retail economy saw a slump in July as a result of
New data from Majid Al Futtaim shows that the UAE retail market’s recovery is continuing.
Masks and make-up don’t really go hand-in-hand right? Despite that, the Middle