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Neil Saunders @NeilRetail
, 21 tweets, 12 min read Read on Twitter
In 1985, US department stores took 14.5% of all retail spend. Last year they took 4.3%. The figure is still falling. The internet is often blamed for this. But the blunt truth is that US department stores just aren’t very good retailers. In fact, most of them are abysmal.
The majority of mainstream stores are uninspiring places. Even in good malls, they are dispiriting and dismal. Investment is severely lacking. They are devoid of inspiration. There’s no reason for people to visit.
Retail basics are lacking. There’s no care. Standards are low. Is it any wonder market share had fallen off a cliff? Why should customers spend their hard earned cash here?
As it is almost New Year, here are some resolutions that US department stores should be making - looked at through the lens of a company that really does retailing and constantly makes an effort: UK department store, John Lewis & Partners. @jlandpartners
One. Present things neatly and with some flair. This is basic; it’s retail 101. Even mundane or everyday products should be focused on. A bit of effort in display makes shopping pleasant.
Two. Offer proper authority in all areas. Most US department stores are not really department stores. They’re big fashion stores with a bolt on of other things. They miss out on high growth categories like homewares.
Three. Create little visual delights. Don’t display everything in a functional way; break it up with interesting fixtures and areas, where people can pause and consider the things you’re offering.
Four. Do not have a sea of merchandise in fashion. It’s uninspiring, it’s hard to shop, and it’s really not what consumers want. Less is more. Use the freed up space for visual inspiration and to highlight key pieces.
Five. Discount areas do not need to look messy. They don’t need to be piled high with random merchandise. And yes, you need to tidy them occasionally.
Six. Ditch the carpet. Green carpet is not nice, Macy’s. It wasn’t nice when you fitted it in the 1980s. And it sure hasn’t come back in fashion now. Rip it up and put a modern floor down.
Seven. Make sure registers are clear to see and are manned. Having small podium - hidden like an tiny island in a sea of product - is absolutely no good. And don’t forget, registers are increasingly customer service desks where people query things, want to check stock, etc.
Eight. Allow customers to check stock too. Link online to the store. People shop across channels. Enable them. Oh, yes, and this also means you don’t have to cram every single product into your shops!
Nine. You need your own brands. US department stores are so poor at this. John Lewis is so good! If you don’t have own brand you can’t differentiate and it’s more difficult to protect margins.
Ten. Foodservice is growing faster than retail. And you can’t eat out online. Incorporate good dining options into your stores. They draw people in, generate revenue, and make people linger for longer.
Eleven. Think of other services you can offer. Many people don’t just want to buy goods, they want to buy experiences and expertise too. Capitalize on their needs.
Twelve. Partner with big brands to create strong displays. Use their expertise and knowledge to help you sell. Work together.
Thirteen. Service, service, service. Really good customer service is all. Help people, they won’t forget it. (And make sure the letter ‘c’ doesn’t fall off your display)!
Fourteen. Be a destination. You can’t make a huge space work without catering for lots of needs. Focus on your customer, get them to shop across various departments.
Fifteen. Care for your people. They are the biggest asset you have. Trust them, empower them, inform them, pay them well. They’re your army and they’ll lead you to victory.
John Lewis is a great retailer. They don’t get everything right and they are not without problems. But they understand the basics. They care. And they invest. It’s why they’ll survive.
US department stores can learn a lot from John Lewis. This thread has fifteen simple lessons. Not rocket science, but all essential. Let’s hope 2019 is the year when players like Macy’s start to make a real step change. Their survival depends on it.
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