Sales Bottlenecks In The First Quarter Of 2016: Will Department Stores Disappear?

For the first quarter of 2016,

For example, like most previous quarters, sales are not optimistic.

Where is the problem?

In recent years, department stores have predicted that the reports of extinction will be overwhelming.

Nord's department store, the Department of justice, Jesse Pani's report also shows that its comparable sales decline.

In recent years, online shopping as a better alternative to physical shopping has become a more popular way of consumption. The new millennial generation is also more inclined to purchase products based on product experience rather than product itself, plus a discounted discount during the economic crisis, which enables consumers to find a more suitable shopping price (discount industry chain therefore succeeds).

The drop in department store sales is a natural consequence of these combined factors.

In the financial times luxury business forum held in San Francisco, the topic of whether department stores will disappear is mentioned again. Some people pour cold water on it, while others emphasize the importance of department stores.

The beauty brand Glossier and the famous beauty makeup website founder Emily Weiss pointed out that people will explore new beauty products in YouTube tutorials and friends' Instagram, which will reduce their demand for shopping in department stores.

She said, "Ladies no longer drive to department stores to deal with strangers to understand products."

Weiss added that in terms of consumer services, department stores have more advantages than retail.

She also points out that recently, Glossier has risen to a physical store. Most consumers have already known what they want before they enter the shop. The probability that customers talk to their shop assistants is only 40%.

Lauren Santo Domingo, co-founder of Moda Operandi, said she felt

Consumers are moving away from department stores in the way of shopping.

She said, "no matter whether they shop online or shop in physical stores, they have the right to take a stroll, or they can go shopping or go shopping.

Ladies no longer look for their favorite things in the department store up and down the floor as before, and then talk with the shop assistants to find out the relevant information.

This shopping method is no longer applicable.

Barnes boutique seems intent on maintaining a solid customer base and has recently set up another store in New York.

At the symposium, Daniella Vitale, chief operating officer and senior executive vice president of Barnes, a famous retail architect, said: "people are particularly interested in our restaurant. We will continue to innovate and set up a restaurant in every store."

Indeed, more and more retailers are putting their diet and other experiences into their physical stores.

Urban Outfitters recently bought a restaurant line, intended to integrate the concept of diet into its entity management.

The rise of online shopping mode has changed the attitude of various brands to wholesalers, but it also varies from person to person.

For example, Bubbery is gradually losing the middle wholesalers and concentrating on D2C mode, while CEO of Coach and Saint Laurent think it is still very important to open multi brand store.

Saint Laurent's CEO Francesca Bellettini believes that the most important thing to achieve organic growth is for local customers (not tourists), and you need to make sure that local consumers can consume anywhere they want to spend.

He does not recognize franchising that requires all responsibility, because ultimately you only need to choose a good partner, trust him and ensure that the message is delivered to the customer in a correct way.

CEO Victor Luis of Coach thinks that department stores actually play the role of advertising.

"Although we have heard of the decline of department stores, it is also true that consumers will go to department stores or boutiques to get information about merchandise.

Therefore, middlemen are still very important, of course, in a selective way.

We also heard that other brands use wholesalers to expand brand awareness.

It is worth mentioning that despite the decline in sales in the US Department stores last year, brands are more afraid of other countries such as the United Kingdom.

But in the United States, people spend money anywhere except clothing and its accessories.

Sales of air tickets, hotels and restaurants all rose, according to Sarah Qyunlan, a senior vice president of MasterCard.

Department stores may not be dead, but if they want to survive, they'd better jump out of the fashion box and think about it.