Department stores have long been part of the fabric of many towns and cities in the UK – the one-stop-shop for almost everything you could need.
Back in the 1700s, department stores themselves were the big retail disruptors – before that, shops were niche and generally focused on one area of speciality; department stores brought all of those different retail areas together, creating a retail experience that transcended product categories.
Fast forward 300 or so years, however, and department stores are feeling the pinch from what is essentially the world’s biggest ever department store – the internet.
So, how can department stores retain the lure, appeal and magic of their unique value proposition while meeting the expectations of today’s customers and retaining relevancy in an increasingly digital retail landscape?
Understanding the modern consumer
Online shopping accounts for more than 25% of all retail sales in the UK. However, that figure has fallen from a pandemic-impacted peak of almost 37% in 2021. Regardless, the modern consumer enjoys the convenience of online shopping, with 80% of the population making ecommerce purchases.
While 61% of UK customers prefer to shop in-store, more than half of shoppers prefer to order online from brands with in-store returns, meaning the brick-and-mortar stores are still vital. The department stores that can maintain their in-person experience and complement it with a strong online presence – and create a seamless flow between the two – can carve out an incredibly valuable proposition.
Maximising online presence
First and foremost, if your department store is going to go from strength to strength over the coming years, it needs to have a strong online presence – which won’t come as news to anyone.
How your website operates and integrates with your physical store is incredibly important, however.
Until recently, it was common for the in-store and online parts of the business to operate independently – with neither side sharing much aside from a brand logo.
Today, things are different.
Customers expect a seamless experience from their retailer – whether that’s online or in-store – so the software your business is built on needs to span the virtual and physical.
From product data showing real-time stock levels to click and collect, home delivery and in-person return options for online shoppers, an integrated ecommerce solution is essential for department stores to flourish in today’s retail environment.
Enhancing customer loyalty
Customers have so many options to choose from when they’re online. And, online can often be a race to the bottom on price, unless you’re offering more than just a product. That’s where customer loyalty apps come in.
Loyalty apps that can be used in-store create customer records and a strong supply of data to help inform decisions – more on that shortly.
By engaging and communicating with your customers through a loyalty app when they’re not in-store, you can keep the relationship alive. And by delivering tailor-made offers and incentives to individuals, supplemented by loyalty points, invites to special, exclusive in-store events, and home delivery or in-store pickup options, you can help increase the chances your customers purchase through you – rather than making a purely price-driven decision.
Using data to inform decision making
Department stores produce significant amounts of data – the challenge has been collecting it all in one spot, and bringing it together to provide useful insights.
By collecting data on and offline – from product information to customer behaviour and purchasing patterns – you can begin to create a holistic picture of the trends to capitalise on and the opportunities not to miss.
Ensure you make the most of what makes you, you
When you’re blending the virtual and the real life, it’s important to remember your brand – your personality. The things that make you, you. For department stores to succeed in an increasingly digital world, the experience should be seamless in terms of look and feel, and personality. A department store traditionally had an element of luxury, was well signposted and was an ‘experience’ in itself. All of these things must be extenuated and exaggerated online to create an experience that truly captures customers.
Enhance the in-store point of difference
To truly succeed in a digital world, the elements that can only be served up in person need to be enhanced. For example, customer service, advice, fittings, the environment in which people are shopping – it needs to be a genuinely enjoyable experience that goes way, way beyond the transactional and the price.
If it’s more difficult or less enjoyable than shopping online, the battle is already lost.
Technology can benefit this too. For example, electronic pricing, digital screens and virtual changing rooms can all create engaging experiences while enhancing the core value of an in-person trip to a department store.
