Comment: Department stores can be a beacon for retail
Department stores have arguably been ground zero for store closures in the UK with a raft of storied names disappearing from high streets over recent years. But we are not witnessing the death of this once commanding format because life is being breathed into the model.
It is definitely a polarised scenario with some department stores succumbing to a painful end after hundreds of years of trading while others are enjoying hefty levels of investment and their footprints are being expanded. In the troubled camp is Beales that recently announced it will sadly close its final remaining store in Bournemouth at the end of May after trading for 143 years.
It will follow a catalogue of other department store closures including Debenhams and House of Fraser, with the many of the latter outlets hitting the buffers under the ownership of Frasers Group. Among them was Jollys in Bath that had traded since 1823 until the Mike Ashley-controlled group closed the property.
Thankfully this historic retailing destination is to be resurrected by Morleys department store group that runs eight properties around the country including Pearsons in Enfield, Camp Hopson in Newbury and the Morleys store in Brixton. The company is to bring it back to life through serious investment over the next 18 months that will develop it into a destination with plenty of experiential elements including a full-service beauty proposition and a curated food and beverage offering.
Never Miss a Retail Update!This is very much the model employed by Selfridges and Harrods that have been boosting the non-retail elements of their stores. It has also been a fundamental part of the offer at the flagship Steen & Strøm department store in Oslo. It has just enjoyed its best-ever annual trading performance since it opened in 1797.
The world’s oldest continuously running department store has celebrated a year-on-year sales increase of 6.9% that was helped by the introduction of a new ‘Tech Hall’, luxury and footwear concepts, pop-ups for emerging brands, and a reimagining of the restaurant and event spaces. Food and beverage has become a major point of attraction for department stores and this is a point very much noted by French department store chain Printemps with its recently opened store in New York City.
This bold move is very much a vote of confidence in the department store model with the 5,000 sq m outlet representing a major investment by the group. Much of its appeal will be down to the focus on the relevant brands that are given space in dramatic staged rooms. There is also plenty of square footage given over to cafes and restaurants because the success of the store will rely on its ability to deliver the necessary experience. Renowned chefs have been brought in to attract a customer base that will be spending liberally on these experiences as much as they are on the goods sold on the store’s shelves.
These various initiatives by operators overseas and in the UK highlight how the department store is an ideal canvas on which to deliver an experience-led retail environment that represents the future of physical retail. But this is not easy to achieve, as seen by the many failures over the years, and requires deep pockets to keep up the standards and level of interest for customers.
For the future of the department store model, and store-based retail in general, let’s hope there continues to be enough owners willing to invest in these businesses that ultimately highlight how exciting visiting physical outlets can be compared with the typically anodyne experience of online retail.
