The news hasn’t been great for department stores. Sales have been consistently down since 2011 and there’s no relief in sight. Declining mall traffic, shifts in consumer spending, a sharp increase in e-commerce, and a trend toward value-oriented retailers have left both retailers and brands in a slump. Does this signal the death of the department store? Not yet! 80% of consumers say they still shopped in department stores in the last year. While that’s down 8% since 2013, the overwhelming majority of shoppers still visit their favorite department stores at least occasionally…but is that enough to save the industry? Here, we explore some of the reasons that consumers walked away from department stores…and how they can win them back.
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Top 5 Reasons Consumers Aren't Shopping in Department Stores
1. 59% of teens say "malls aren't cool!" Most department stores anchor large shopping malls and as consumers have shifted away from mall shopping in favor online shopping, discount stores, and specialty retail resulting in less department store traffic
2. 47% say prices are too high
3. One-third have reduced spending on clothing and footwear
4. 63% of consumers are shopping at value-oriented stores
5. 23% say department stores are not conveniently located