Published 23 February 2023

Author
Marta Mąkolska
18 min read
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Despite facing well-documented challenges, global department store revenues are set to grow by 5.1% annually until 2028. From innovation temples, neighbourhood regeneration, Web3 experimentation and experiential gastronomic adventure studios to spaces capturing the new parent and medi-wellness dollars and eco loyalty schemes solving the format’s ‘Christmas curse’ we distil the tactics transforming the department store.

Civic Commerce: Access to Art, Culture & Nature

Innovation Houses: From Curation to Exploration

Web3 Destinations: Exploring & Onboarding

Sustainable Service Design: Eco-Concierges & Loyalty

Engaging (& Reassuring) New Parents

Mainstreaming Medi-Wellness

Culinary Kudos: Livestreaming Food Studios & Supper Clubs

Epitomising the shift to more ethically grounded brand engagement (see Civic Commerce: Socialising the Retail Revolution), astute department stores are using the might of their large physical footprints to augment private commerce with public good via sociocultural spaces. Democratising access to art, culture and nature, the best retailers are cementing this new role by reshaping urban life.

Epitomising the shift to more ethically grounded brand engagement (see Civic Commerce: Socialising the Retail Revolution), astute department stores are using the might of their large physical footprints to augment private commerce with public good via sociocultural spaces. Democratising access to art, culture and nature, the best retailers are cementing this new role by reshaping urban life.

Summary

Civic Commerce: Access to Art, Culture & Nature

Epitomising the shift to more ethically grounded brand engagement (see Civic Commerce: Socialising the Retail Revolution), astute department stores are using the might of their large physical footprints to augment private commerce with public good via sociocultural spaces. Democratising access to art, culture and nature, the best retailers are cementing this new role by reshaping urban life.

Innovation Houses: From Curation to Exploration

Evolving their longstanding curatorial role into a horizon-scanning stance (see ‘Nexperiums’: Retail Observatories in Brand Spaces: 9 Trends & Opportunities, 23/24), smart department stores are creating dedicated spaces showcasing what’s coming down the line with an inspiring yet digestible approach.

Web3 Destinations: Exploring & Onboarding

Chiming with the aforementioned ‘innovation houses’ approach, forward-thinking department stores are introducing Web3 tech that supports the mainstreaming of complex or intimidating tech. Services like the authentication and resale of digital assets and tutorials are key, as are real-life-mimicking digital twins, which act as an introduction to the metaverse. For more, see Virtual Flagships.

Sustainable Service Design: Eco-Concierges & Loyalty

Shrewd retailers are evolving their eco guardianship with services including sustainable concierge and loyalty programmes, engendering aspirational yet hard-to-sustain green habits. Critically, this approach embeds department stores into consumers’ lives on an ongoing basis rather than an annual festive visit – 30% of Brits blame time for not adopting sustainable lifestyles (Deloitte, 2022).

Engaging (& Reassuring) New Parents

Capturing a new customer base at a critical, loyalty-building life stage – and an age at which department store shopping becomes more appealing (see Key Stats) – smart retailers are targeting new parents with problem-solving zones and tech-trialling stations. Meanwhile, classes and chill-out areas keep children entertained as parents shop.

Mainstreaming Medi-Wellness

Powering up a post-pandemic desire to both feel and look better (see Key Stats), some department stores are medicalising their wellbeing offers, with Selfridges delivering Nasa-engineered wellness and biohacking experiences in a full-service approach. Tweakments are also emerging as a key driver, legitimising the growing – yet controversial – field.

Culinary Kudos: Livestreaming Food Studios & Supper Clubs

Marshalling their food and beverage expertise, and their wider gastronomic connections, some department stores are bringing world-renowned chefs directly to consumers via shoppable livestreams and intimate in-store supper clubs. These concepts offer a front-row seat to culinary innovation, as well as the ability to talk to foodie heroes.

Transforming the Department Store

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Offering access to over 350 consumer and cross-industry reports annually, Stylus Membership is your window to tomorrow’s most exciting opportunities.

We already arm more than 500 of the world’s most forward-thinking brands and agencies with the creative insights they need to make transformative business decisions.

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