Department Stores Must Upgrade Their Total Shopping Experience

Implications: The entire department store segment is hurting right now, but those that improve their merchandising strategies , build their store brand though creative marketing and improve the shopping experience for their customers will emerge as market leaders once the economy turns around. Department stores must shop the market for fresh collections and new designers - and cut back on stale assortments form large manufacturers.

Analysis: When I survey shoppers on what Kohl's, J.C. Penny, Bon-Ton, or Macy's stands for, I often get a blank stare or some version of "I don't know." While discount shoppers often mention "great price's" and specialty store shoppers talk about "unique merchandise" department store consumers are, at best, vague about image of the store in which they just made a purchase.

While most department stores have cut back on opening seasonal orders from big brands like Jones New York, Nine West, and Liz Claiborne, the fact remains that smaller contemporary brands and new designers with an "edge" to their collections, are rarely part of the mix. Every year, top management from the largest manufacturers meet with department store executives to develop an annual plan which includes items such as forecasted volume, gross margin guarantees, allocated square footage and advertising allowances. Unfortunately, after these deals are cut, (and private label brands are allocated funds and space)very little "open to buy" is available for smaller brands that could bring the much needed element of surprise and innovation to the selling floor. 

Department Stores must work harder at conveying to consumers what their brand really stands for in the  overcrowded retail marketplace. This is a long-term process that requires vision, skill and a top flight marketing department.

Many successful specialty stores have worked hard at making the "total shopping experience" for their customers a priority. Department stores that want to win the battle for customers hearts and wallets, had best take notice of what it takes to pull this off (think service) and maybe they can make shopping for fashion fun again.