Managing a curated experience and offer in different department store locations

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In a chain of department stores, there are premium A locations and a range down to C locations where there may be a less affluent demographic, or smaller customer catchment. What is the best way to centrally manage the offer to fully potentialise each location's requirements?

Sue Dunn
81 months ago

6 answers

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First there is no need for a cookie cutter approach. Larger, more affluent or flagship department store locations call for a larger, more complete assortment in a curated or shop-in-shop. Much like any retailer tailors their assortments by location, the same priciple holds true.

Rick Planos
81 months ago
I agree that you can adjust the product offer (and indeed category mix) dependent on space, affluence etc. I'm interested more in the experience end of the new developments in Department Stores. It's champagne bars and high-end beauty in premium stores - what's the best translation for less affluent (though not necessarily smaller) locations? - Sue 81 months ago
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It feels like there might be two different issues here. Rick's answer captured the A-store to C-store offering mentality. It seems like the affluence-based experience model is really more of a brand issue. In other words, Neiman Marcus offers one type of experience while Macy's offers another. I'm not sure that Macy's would be wise to try to replicate the Neiman experience in its most affluent markets, and I'm not sure that Neiman would be wise to try to open stores with a "lower level" experience in less affluent markets. Customers shop the brand based on the experience they expect, and having different experiences across the brand would confuse customers. So I don't see it as an A-C store issue. I see it more as a brand issue. Each brand must determine the type of experience it wishes to deliver to its customer base. That should be done with a thorough understanding of who the typical customers are and what different segments of customers form the brand's base. It is true that Macy's shoppers in White Plains, NY are more mid-market (more affluent consumers in that market can shop at Neiman), while Macy's shoppers in Harrisburg, PA are more high-end (there is no Neiman in that market). But the real question is whether affluent people in Harrisburg, PA want/expect an experience that is more similar to afflent shoppers in White Plains or to mid-market shoppers in White Plains. I believe that Macy's shoppers in neither market are wanting a champagne bar experience.

Jon Dario
81 months ago
Well said Jon since Terry Lundgren served as the CEO of both Neiman's and Federated with significantly greater success at the later. - Patty 75 months ago
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Thanks for responses. I should have been clearer that I'm speaking from the UK where we have a smaller repertoire of Department Stores with large chains. Here Debenhams, which is focused on a slightly lower customer demographic, has c 170 stores which puts it throughout the UK, and many of those stores - on long leases, and quite a few in older buildings - have suffered from little investment over the years. House of Fraser has c 60 stores in the UK, and has a more 'premium' image, but again possesses stores in locations where the demographic is less affluent.
Apart from them, the Department Store market has premium stores (Selfridges, Harrods, Harvey Nichols) in a small number of locations, and key 'middle-market' John Lewis in c 50 stores (and John Lewis have announced they don't intend to expand further in bricks-and-mortar)
New CEOs for both Debenhams and HoF are focusing on strategies emphasising customer 'experience' and I'm interested not so much how you do this in big cities with the 'champagne bar' type offer, but in smaller stores which - you're quite right - don't need (or don't have the volume customers) for this sort of aspiration.
Does focusing on 'experience' mean that these smaller stores (and I don't mean necessarily in size, either) get more and more 'off-strategy' in terms of finding the product/experience offer appropriate for their specific market?

Sue Dunn
81 months ago
Thanks for the clarification. I am somewhat familiar with the UK department store market, particularly Debenhams, Selfridges, Harrods, and Harvey Nichols. What types of things are Debs and HoF doing to focus on the "customer experience?" My opinion remains the same - they should first ensure that the basic shopping experience is not significantly more difficult than shopping online. - Jon 81 months ago
Is it easy to find sizes? Is it easy to check out? Is it easy to try on product? Is it easy to receive answers to questions? What is the typical customer's frame of mind when they go to a department store? Fulfill the basic expectation first, then consider doing more. Dept stores' biggest advantage is allowing shoppers to see themselves in the product. Capitalize on that first! - Jon 81 months ago
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Thanks - I agree that a focus on basic principles is key.
However, in the UK we now have data suggesting that best performance is seen from more 'experience' related offers, e.g. cafes and other 'treat' food&beverage offers such as patisseries/champagne bars, beauty treatments, beauty exclusives, and other more personalised offers.
Two key department store chains in the UK, Debenhams and House of Fraser, have announced strategies which are focused on experience-led offers. In fact, the newly appointed HoF CEO is not a retailer, but has a background in leisure. His appointment was apparently "to contribute his extensive expertise of delivering compelling and engaging experiences for the customer."
My original question, which I've not expressed as clearly as I could have done, is about how to develop appropriate 'experiences' in a varied chain of locations, with different demographics.
Any thoughts? Or comments on that strategy generally?
I think I agree that all the 'basic principles' boxes do indeed need to be ticked first.

Sue Dunn
81 months ago
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There is a lot of data online that supports the findings for each stores' specific "personality" so the operators and their supporters at the office could evolve their people's focus and their assortment. Opening their focus on their local social media could also help their specific focus for what the should promote.

Arun Sharma
81 months ago
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There are too many variables here to classify one answer. Consider the product, the target market for the product, the profit margins desired, the gross margin needed, the amount of square footage the product will take, the ability for the product to sell itself, the marketing campaign attached to the product, the need for a dedicated sales associate, how the supply change will work, the turn of the product, etc.

Patty Soltis
75 months ago

Have some input?