Department stores survive the pandemic by adapting and innovating. The retail industry has seen huge upheaval in recent years due to the rise of e-commerce and the decline of shopping malls. One retail sector that has been hit hard is department stores.
Iconic Canadian brands like Eaton’s, Simpsons, and Woodward’s are gone. US retail brands, including Nordstrom and Target, entered the Canadian market and then withdrew.
Only a few department store retailers, such as The Bay, still hold a slim position in the Canadian retail market. Similar upheavals have occurred in the United States. With the disappearance of many regional department store brands over the past 30 years.
The challenges retailers face are compounded by the COVID-19 pandemic. Retailers and department stores have struggled to stay afloat during the shutdown. To survive in the harsh retail environment, they need to be both resilient and innovative.
With this in mind, we collected sales data from 17 department store chains in the United States to study the strategies these stores used during the pandemic.
Pick up the curb
The first strategy is to use roadside pickups. This allows customers to shop safely and conveniently by ordering online and receiving items outside of physical stores.
While this strategy was used before the pandemic, it has increased dramatically during the lockdown.
Alternatively, another similar strategy – buy online and pick up in-store – was widely used before the pandemic, but the added security of parking lot deliveries made pickup at The curb has become a welcome option for shoppers.
This strategy not only helps to stay afloat during the pandemic but also emphasizes the importance of putting customers and their safety first in the face of adversity.
Product return window
The second strategy is to extend the product return period. By giving customers more time to return products, department stores prioritize customer satisfaction and encourage them to make future purchases.
Giving customers more time to return an item—sometimes even up to a year—gives customers more time to inspect items and return unwanted items.
Like curbside pickup, longer product return periods were in use before the pandemic, but health and safety restrictions spurred its use.
Virtual testing technology
A third approach – using virtual trial technology – has helped retailers survive closures and could also be helpful in the long run. This technology allows customers to virtually “try on” items before committing to a purchase, whether online or in-store. Customers can try on products at home, such as clothing or jewelry, using their camera-equipped devices, reducing the need to visit physical stores and use changing rooms.
Our research shows that the impact of trial technologies on department store sales is greatest as COVID-19 restrictions weaken.
The closure of physical stores and security issues have significantly accelerated the adoption and use of this technology. This not only drives sales of wearables but also opens the door to a wider range of products, such as apps that let you try on furniture or makeup virtually at home. home. The convenience that trial technology brings to consumers extends beyond the pandemic. Retailers that have invested in this technology during the lockdown will continue to benefit for a long time.
Adaptation is the key to survival
Department stores that have adapted have been most successful in meeting the challenges posed by the pandemic. This highlights the importance of having dynamic capabilities – strategies that enable retailers to adapt to rapidly changing environments.
Thanks to their ability to adapt and react quickly to change, retailers have been able to restructure their operations, improve efficiency and reduce business risk. Retailers that not only survived but innovated during the crisis are in the best position to thrive once it’s over.
These department stores were able to maintain customer trust and loyalty by offering alternative shopping options and flexible return policies. This shows the importance of putting the customer first and being ready to adapt to changing consumer behavior.
The future of retail
The story of department stores during a pandemic is a story of adaptability and the pursuit of innovation. Lessons learned from the pandemic will continue to shape department store strategies and guide their transition into the future.
By leveraging their unique strengths, such as broad product portfolios, brand histories, and customer relationships, department stores can rethink their role in the ecosystem. retail behavior and attract consumer interest.
As the retail landscape continues to evolve, department stores have an opportunity to regain relevance by leveraging their strengths and catching up with emerging consumer trends. The road ahead can be difficult, but with strategic vision and a commitment to innovation, department stores can still thrive in this new retail era 바카라사이트.