Market Research Logo

Store Of The Future 2016: Department Stores

Store Of The Future 2016: Department Stores

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.


  • Executive Summary - Department stores 2016
    • Executive summary: Store of the future 2016
  • Data Analysis - Leading department store operators
    • Data analysis: global Top 10, sales, stores, space, sales densities 2015
      • Table Data analysis: global Top 10, sales, stores, space, sales densities 2015
    • Data analysis: US domination, Macy's digital strategy
    • Data analysis: Macy's digital strategy, Sears investment boost
    • Data analysis: delivery expansion for Kohl's, M&S and JC Penney sales densities
    • Data analysis: JC Penney's Apple experiment fails, John Lewis's USP
    • Data analysis: El Corte Ingles' huge stores, Isetan-Mitsukoshi's sales per outlet
  • Flexible space and new formats - Driving customers back in
    • Flexible space and new formats: department stores must specialise
  • El Corte Ingles - Deconstructing the department store
    • El Corte Ingles: fashion spinoff stores
    • El Corte Ingles: offshoot stores to support flagships? Two hour delivery launch
    • El Corte Ingles: two-hour delivery launch
  • Printemps - Pop up store
    • Printemps: toy pop up shop, interactive windows
    • Printemps: balancing history with the future
  • Debenhams - Restoring value perception
    • Debenhams: cutting back on promotions, improving space productivity
    • Debenhams: upselling to store customers, benefits of concessions
  • In store concessions - Tinkering around the edges
    • Concessions: the solution to the dead space problem
  • Galeries Lafayette - Modernising a century old institution
    • Galeries Lafayette: Disney and Star Wars for Christmas, Nespresso concession
    • Galeries Lafayette: Etsy tie-up, Ambitions 2020 rebranding plans
    • Galeries Lafayette: flagship refurbishment, Japanese tourists staying away
  • Nordstrom - Customer-centricity
    • Nordstrom: Shoes of Prey concession adds new level of digital interaction
    • Nordstrom: Trunk Club's role in the business, welcoming online pureplays
    • Nordstrom: leader in customer engagement
  • John Lewis Partnership - Tweaking the business model?
    • John Lewis: new direction for John Lewis with Finery link-up?
    • John Lewis: &Beauty concept store opens in the new Birmingham flagship
    • John Lewis: £2 click and collect charge introduced. Smart or stupid?
  • In store technology - Bridging online and offline
    • In store technology: vital for survival
  • Myer - Omnichannel reform
    • Myer: solution driven shoes app, `storybook' store format
    • Myer: improved customer service at flagships, brand overhaul
    • Myer: pressure to deliver
  • Hudson's Bay Company - Planning Saks Fifth Avenue's future
    • Hudson's Bay Company: facial recognition and biometrics tech in Toronto store
    • Hudson's Bay Company: Gilt Groupe acquisition and integration
    • Hudson's Bay Company: Kaufhof acquisition and concession plans
    • Hudson's Bay Company: no store closure plans, restructuring buying, investments
    • Hudson's Bay Company: category adjustments, store plans, online ambitions
    • Hudson's Bay Company: Kaufhof's grocery strategy, financials
  • In store hospitality - Harvey Nichols' hotel concierge model
    • In store hospitality: pampering the shopper
  • Harvey Nichols - Flagship relaunches
    • Harvey Nichols: blending technology with hospitality
    • Harvey Nichols: luxury hotel experience, virtual reality to tempt customers in
    • Harvey Nichols: hospitality as USP, classy touch to new men's department
    • Harvey Nichols: classy touch to new men's department
  • Click & collect - Attracting online customers into stores
    • Click & collect: the most powerful tool to drive footfall
  • House of Fraser - Click & collect pioneer
    • House of Fraser: dedicated click & collect stores with mixed results
    • House of Fraser: Edinburgh's top floor click and collect service
    • House of Fraser: customer data influences click & collect strategy, Caffe Nero
    • House of Fraser: shoppable windows, digital mannequins
    • House of Fraser: 'Scan and Explore by HoF'
  • Vertical Integration - Expanding private label
    • Vertical Integration: new business model for department stores
  • Isetan Mitsukoshi - In-house women's shoe range
    • Isetan-Mitsukoshi: Number Twenty-One range
    • Isetan-Mitsukoshi: creation of a shoe-making firm
    • Isetan-Mitsukoshi: robot assistants
    • Isetan-Mitsukoshi: internationalisation of flagship, duty-free store
  • Marks & Spencers - Integrating its own web platform
    • M&S: financials, strong food division versus weak non-food division
    • M&S: still grappling with the move away from Amazon
    • M&S: clothing and homeware sales fall
  • Strategy - Clienteling – the do's and don'ts
    • Clienteling: following the customer
    • Clienteling: the introduction of big data into bricks and mortar
    • Clienteling: single inventory view and an endless aisle solution
    • In store: digitising shopping, state of play
    • In store: Apple Pay and beacons underwhelming so far, more promise from clienteling
    • Challenges: What data to use and how much to use?
    • Clienteling: possible solutions
    • Clienteling: algorithm driven recommendations, tiered proposition
    • Clienteling: thoughts
    • Clienteling: beyond footfall, big tickets optimal, recommendation engines
    • Clienteling: the challenge
    • Clienteling: words of warning
    • Best practice case example: Apple
    • Clienteling: more on Apple stores successes
    • Where has clienteling worked?
    • Clienteling: The Pinpoint app
    • Where has clienteling worked?
    • Clienteling: the cloudtags solution
    • Best practice case examples
    • Clienteiling: Pets@home, Schuh
  • Outlook - Don't give up on department stores yet
    • Outlook: Store of the future 2016
    • Sources

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report