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Agenda-setting intelligence, analysis and advice for the global fashion community.

Innovation Won’t Save Department Stores. The Right Products Will.

Mid-market American department stores like Macy’s, Kohl’s and Nordstrom need more than new owners and retail formats to win back customers; they must reinvent their entire value proposition with a selection that can compete with online fast fashion and off-price players. Time is running out.
Inside Macy's store, beauty counters.
Macy’s will close another 150 stores by 2026, effectively halving its footprint from 2018. (Shutterstock)

For Terry Lundgren, a former CEO of Macy’s, talk of the possible extinction of department stores is a tale as old as time.

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Further Reading

Case Study | The Art and Science of Retail Store Success

The best stores don’t just serve as billboards or customer touchpoints —they’re a stable and lucrative revenue stream. As younger consumers have embraced in-store shopping despite their digital native instincts, the value of stores is undeniable. Running an effective store requires choosing the right location, understanding its sales potential and making sure it serves its local clientele.

Is Macy’s ‘Bold New Chapter’ Bold Enough?

New CEO Tony Spring’s plan to shutter stores and improve products echoes previous efforts for revitalisation. To pull it off this time, the retailer must deliver transformational changes in the shopping experience.

About the author
Cathaleen Chen
Cathaleen Chen

Cathaleen Chen is Retail Editor at The Business of Fashion. She is based in New York and drives BoF’s coverage of the retail and direct-to-consumer sectors.

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