Department stores’ “shop concept”: A dead end?

Retail Wire panelists commented last week on the growth of leased space within department stores, as we’ve seen for years in Asia and Europe. The discussion focused on whether this is a good business model or not…my opinion is less concerned with the financial arrangements (leased vs. store’s own space) compared to the whole idea of shop concepts compared to category dominance. Here’s my vote:

Most department stores have moved to this model, whether consciously or not. They may lease space to vendors or (more likely) simply present shops by brand in order to present lifestyle collections for national vendors or their own private labels. (Think of INC shops at Macy’s in addition to well-known brands like Calvin Klein.) I may be in a minority, but I feel that lifestyle vs. category merchandising has helped lead to the breakdown of dominant presentations in department stores, has made them more difficult for shoppers to navigate, and has contributed to their long-term loss of market share. The entire concept needs to be re-addressed, whether the financial arrangement involves leased space or not.


0 Responses to “Department stores’ “shop concept”: A dead end?”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s


%d bloggers like this: