Release date: April 15th, 2016 (122 pages)
PDF/Powerpoint format. Price: GBP1,500.00


Store of the future 2016 – Department stores is part two of our Store of the future series. The report offers a range of solutions and case examples on how department stores can combat the threat from online and specialists (from fast fashion to luxury players). As it stands department stores have a lot of work cut out to reinvent themselves.

Apart from a dedicated chapter on clienteling, this report outlines six possible solutions employed by the most innovative department stores right now:

- flexible and new uses of redundant space,
- how to get concessions just right,
- innovative in-store technology,
- in-store hospitality 2.0,
- radical click & collect,
- vertical integration.

Each section features real life, practical case studies of the best department store operators, sharing key learnings and pointing out pitfalls to avoid.

While these solutions cannot guarantee success in every single case, they will greatly help department stores to regain the initiative.

The threat from e-commerce, fast fashion players and the expertise of leaner, nimbler and hipper boutique retailers can be countered.

In the end there will be winners and losers, but the department store is certainly not consigned to history.

Table of contents

Executive summary: Department stores 2016 p9
Data Analysis: Leading department store operators p17
Data analysis: global Top 10, sales, stores, space, sales densities 2015 p18
Data analysis: US domination, Macy’s digital strategy p19
Data analysis: Macy’s digital strategy, Sears investment boost p20
Data analysis: delivery expansion for Kohl’s, M&S and JC Penney sales densities p21
Data analysis: JC Penney’s Apple experiment fails, John Lewis’s USP p22
Data analysis: El Corte Ingles’ huge stores, Isetan-Mitsukoshi’s sales per outlet p23
Flexible space and new formats: Driving customers back in p24
Flexible space and new formats: department stores must specialise p25
El Corte Ingles: Deconstructing the department store p26
El Corte Ingles: fashion spinoff stores p27
El Corte Ingles: offshoot stores to support flagships? Two hour delivery launch p28
El Corte Ingles: two-hour delivery launch p29
Printemps: Pop up store p30
Printemps: toy pop up shop, interactive windows p31
Printemps: balancing history with the future p32
Debenhams: Restoring value perception p33
Debenhams: cutting back on promotions, improving space productivity p34
Debenhams: upselling to store customers, benefits of concessions p35
In store concessions: Tinkering around the edges p36
Concessions: the solution to the dead space problem p37
Galeries Lafayette: Modernising a century old institution p38
Galeries Lafayette: Disney and Star Wars for Christmas, Nespresso concession p39
Galeries Lafayette: Etsy tie-up, Ambitions 2020 rebranding plans p40
Galeries Lafayette: flagship refurbishment, Japanese tourists staying away p41
Nordstrom: Customer-centricity p42
Nordstrom: Shoes of Prey concession adds new level of digital interaction p43
Nordstrom: Trunk Club’s role in the business, welcoming online pureplays p44
Nordstrom: leader in customer engagement p45
John Lewis partnership: Tweaking the business model? p46
John Lewis: new direction for John Lewis with Finery link-up? p47
John Lewis: &Beauty concept store opens in the new Birmingham flagship p48
John Lewis: £2 click and collect charge introduced. Smart or stupid? p49
In store technology: Bridging online and offline p52
In store technology: vital for survival p53
Myer: Omnichannel reform p54
Myer: solution driven shoes app, ‘storybook’ store format p55
Myer: improved customer service at flagships, brand overhaul p56
Myer: pressure to deliver p57
Hudson’s Bay Company: Planning Saks Fifth Avenue’s future p58
Hudson’s Bay Company: facial recognition and biometrics tech in Toronto store p59
Hudson’s Bay Company: Gilt Groupe acquisition and integration p60
Hudson’s Bay Company: Kaufhof acquisition and concession plans p61
Hudson’s Bay Company: no store closure plans, restructuring buying, investments p62
Hudson’s Bay Company: category adjustments, store plans, online ambitions p63
Hudson’s Bay Company: Kaufhof’s grocery strategy, financials p64
In store hospitality: Harvey Nichol’s hotel concierge model p65
In store hospitality: pampering the shopper p66
Harvey Nichols: Flagship relaunches p67
Harvey Nichols: blending technology with hospitality p68
Harvey Nichols: luxury hotel experience, virtual reality to tempt customers in p69
Harvey Nichols: hospitality puts the customers first, new men’s department p70
Harvey Nichols: classy touch to new men’s department p71
Click & collect: Attracting online customers into stores p73
Click & collect: the most powerful tool to drive footfall p74
House of Fraser: Click & collect pioneer p76
House of Fraser: dedicated click & collect stores with mixed results p77
House of Fraser: Edinburgh’s top floor click and collect service p78
House of Fraser: customer data influences click & collect strategy, Caffe Nero p79
House of Fraser: shoppable windows, digital mannequins p80
House of Fraser: ’Scan and Explore by HoF’ p81
Vertical integration: Expanding private label p82
Vertical Integration: new business model for department stores p83
Isetan Mitsukoshi: In-house women’s shoe range p84
Isetan-Mitsukoshi: Number Twenty-One range p85
Isetan-Mitsukoshi: creation of a shoe-making firm p86
Isetan-Mitsukoshi: robot assistants p87
Isetan-Mitsukoshi: internationalisation of flagship, duty-free store p89
Marks & Spencers: Integrating its own web platform p90
Marks & Spencers: Financials, strong food division versus weak non-food division p91
M&S: still grappling with the move away from Amazon p92
M&S: clothing and homeware sales fall p94
Strategy: Clienteling – the do’s and don’ts p95
Clienteling: following the customer p96
Clienteling: the introduction of big data into bricks and mortar p97
Clienteling: single inventory view and an endless aisle solution p98
In store: digitising shopping, state of play p99
In store: Apple Pay and beacons underwhelming so far, more promise from clienteling p100
Challenges: What data to use and how much to use? p101
Clienteling: possible solutions p102
Clienteling: algorithm driven recommendations, tiered proposition p103
Clienteling: thoughts p104
Clienteling: beyond footfall, big tickets optimal, recommendation engines p105
Clienteling: the challenge p106
Clienteling: words of warning p107
Best practice case example: Apple p108
Clienteling: more on Apple stores successes p109
Where has clienteling worked? p110
Clienteling: the Pinpoint app p111
Where has clienteling worked? Cloudtags p112
Clienteling: the cloudtags solution p113
Best practice case examples p114
Clienteling: Pets@home, Schuh p115
Outlook: Don’t give up on department stores yet p116
Outlook: Store of the Future 2016 p117
Sources p121
Tables Table 1: global Top 10, sales, stores, space, sales densities 2015 p10
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