Quote:
Originally Posted by Emprise du Lion
Honestly a better question might be what department stores aren't struggling right now. All the ones you listed are to a certain degree. Generally speaking though, the lower to mid-range ones are hurting the most. Sears is at death's door, and JC Penny is right behind it. Macy's, which owns Bloomingdales, is on planning closing 100 stores, even as it's pushing openings of Macy's Backstage stores. Nordstrom is pumping the rollout of Nordstrom Rack locations, as sales there are apparently steadier than traditional Nordstrom stores. I believe Saks is also increasing its Saks off 5th range.
Basically they're being cannibalized by each other, the internet, and discount stores like TJ Maxx and Marshalls.
|
Interesting. Nordstrom always seems pretty successful, although I've only ever been to them in their home base in the Pacific Northwest and within Canada. Are traditional downtown department stores, such as in New York, Chicago, and San Francisco, in resurgence?
I'm just trying to compare it to the experience with Canada, where there has similarly been a death to department stores in general. Sears Canada, which was largely considered immune from the perils of the American counterpart, is now dying a slow death and selling off prime retail locations to Nordstrom and Simons. Target, which replaced the HBC (The Bay) Zellers, closed after only 2 years in business, leaving a bunch of shopping malls, including very financially strong ones, with gaping holes in their properties and a lack of viable tenants to take up such a large square footage within the mall. Here, a lot of the biggest and most powerful department store chains bit the dust decades ago (Eatons, Woolworths/Woolco, Kmart Canada).
That being said, there's also a bit of a lesser-spoken upswing in certain department stores. Hudson's Bay (The Bay), which a decade ago was on a slow deathly trajectory, has completely rebranded itself. There aren't really any new stores (in Canada, they're expanding to the Netherlands), but many of the major locations in prime markets (especially Toronto and Vancouver) have been completely remodelled to a more upscale fashion and have seen increasing popularity again. The locations in Edmonton for the most part still need some love, not to mention the smaller markets, so it hasn't fully trickled down.
Additionally, Quebec-based Simons began an endeavour to expand into English Canada a few years back with the store at West Edmonton Mall, and now there are locations built or under construction in Vancouver, Calgary, Toronto, and Ottawa. Simons is "new" and "fresh" for English Canada and is very on top of trends and have thus had great success lately.
Nordstrom has also been met with success where they've expanded in Canada thus far. High end Holt Renfrew has had some downsizing, closing stores in Winnipeg, Ottawa, and Quebec City, but in an effort to streamline things, including complete rebuilds and expansions of their stores in Vancouver and Calgary (and I think Toronto).