Department stores, once the giants of the retail industries. The COVID-19 pandemic has created a whole new world of businesses and killed off many. Did department stores survive?
Once the market mover
Department stores like Isetan and Robinsons were once the rock of shopping malls. They were regarded as Anchor Tenants for the malls that attracted customers. They operated on multiple-floors that make up a large portion of the malls then.
Carrying all types of brands under categories like Men, Women, Children, Household, etc, they were once the main attractions. But this has been on a decline in the last decade with brands starting to operate their own boutiques instead of relying on department stores. And the Coronavirus may well have put the last nail in this coffin!
Changing consumer behavior
One of the biggest problems that department stores have been facing today is that they have FAILED to move on with the times. Consumers today no longer hang around in malls the way that they used to.
They are more focused on what to do and where to shop. Single-branded boutiques are more attractive than department stores with so many brands to choose from. The COVID-19 pandemic has reduced shopping time significantly which means shoppers tend to get into the mall, find the brand they want, buy the items and leave instead of spending hours window shopping.
Integrating online and offline shopping
Brands have more channels to offer their products today. In the past, they relied on department stores as an additional platform to showcase their products.
With e-commerce sits like Lazada, Shoppee and Zalora now carrying multiple brands, coupled with the brand’s own website (and apps), they no longer need to rely on department stores and their shelves. Certain brands lose out due to location and placement. These brands have now effectively left the department store business.
Getting on social media and other awareness campaigns
Social media has changed marketing altogether. Brands can now reach and connect with their customers on various platforms like Facebook or through influencers on Instagram. An integrated social media campaign can drive traffic to their own boutiques.
When customers know what is being offered and is interested, they will go where the promotions are. This is also lower in terms of cost. Without having to pay any Retailer Margin to the department stores, brands benefit.
