LS:N Global is a division of: The Future Laboratory
 

Preview: Uptown Downtown

09 : 01 : 2017 Department Stores : New York : Renaissance Retail

Department store retailers are looking to attract younger audiences by moving location and collaborating with unexpected partners.

  • US department store sales have fallen consistently in the past 10 years
  • In an effort to compete with boutique and concept stores, some retailers are opening smaller footprint stores
Hermés at Nordstrom by StoreyStudio, Seattle Hermés at Nordstrom by StoreyStudio, Seattle
Saks Fifth Avenue, Brookfield Place by Found Associates, New York. Photography by Jason Schmidt Saks Fifth Avenue, Brookfield Place by Found Associates, New York. Photography by Jason Schmidt
Hermés at Nordstrom by StoreyStudio, Seattle Hermés at Nordstrom by StoreyStudio, Seattle
Saks Fifth Avenue, Brookfield Place by Found Associates, New York. Photography by Jason Schmidt Saks Fifth Avenue, Brookfield Place by Found Associates, New York. Photography by Jason Schmidt

Traditionally, the flagship department store has been a space where a retailer could show off the best of its offer. But increasingly in New York, department store retailers are struggling to attract younger consumers into their stores.

Now stores such as Saks Fifth Avenue and Barneys New York are moving downtown to smaller footprint stores while others such as Bergdorf Goodman are launching collaborations that show a younger, more playful side. Department store retailers outside the city such as Neiman Marcus are also using collaborations to attract new clientele into their stores. It has opened a Rent the Runway shop-in-shop inside its San Francisco flagship store as a way to attract entrant luxury consumers.

‘It is a gateway to luxury,’ Tiffany Yannetta, shopping director at Racked.com, tells LS:N Global. ‘Once you try one of those brands, you might get excited about it, and if Neiman happens to carry them, you might turn into its customer too.’

The Big Picture

For more on the latest retail strategies of department stores, see our Uptown Downtown microtrend.