The reinvention of global department stores has been a significant trend in recent years, driven by the need to adapt to changing consumer behaviours, technological advancements and competitive pressures from e-commerce. Here, RLI delves a little deeper into this trend to highlight some key strategies and offer some examples of department stores around the world that are evolving.
Department stores, which were once a dominant force in the retail landscape, have had to reinvent themselves to stay relevant in an increasingly digital world. With the rise of online shopping and changing consumer preferences, department stores have turned to experiential retail and adaptive spaces as strategies to attract customers and enhance their in-store experience.
Through the use of experiential retail and adaptive spaces, department stores are reimagining their role in the modern retail landscape. By creating memorable in-store experiences, flexible and adaptive environments, and leveraging technology, department stores are better positioned to attract and retain customers in an increasingly competitive market. These strategies help transform shopping from a transactional activity into an engaging, memorable experience, ultimately driving customer loyalty and sales.
Examples of how they have utilised these concepts include creating memorable in-store experiences, featuring displays and events, providing personalised shopping experiences, utilising in-store dining and entertainment, incorporating immersive experiences and integrating technology, including adaptive spaces that are flexible and have relevance, using flexible store layouts, featuring pop-up shops and brand collaborations, enhancing their sustainability and localisation efforts and leveraging data and technology.
WOW Concept Madrid is a prime example of how modern department stores are leveraging experiential retail and adaptive spaces to reinvent themselves in today’s competitive retail landscape. Opened in 2022, WOW Concept is a 5,500sq m multi-level department store located in the heart of Madrid, Spain and it embodies many of the principles of experiential retail and adaptive spaces to create a unique and engaging shopping experience. WOW Concept Madrid is designed to provide customers with a dynamic, engaging, and memorable shopping experience, using a variety of experiential retail tactics. The store also employs adaptive space strategies to remain flexible and responsive to customer needs and market trends. A significant feature of WOW Concept Madrid is its use of pop-up shops and temporary installations.
By hosting short-term brand takeovers and exclusive pop-up shops, the store creates a sense of urgency and novelty, attracting customers who want to experience these limited-time offerings. This strategy also allows WOW Concept to test new products and concepts without long-term commitment, staying agile in a fast-changing retail market. WOW Concept Madrid is a great example of how department stores can use experiential retail and adaptive spaces to reinvent themselves.
By offering immersive, technology-driven experiences and maintaining a flexible, adaptive store environment, WOW Concept creates a destination that attracts customers looking for unique, engaging and ever-changing experiences. This approach not only draws customers into the store but also encourages repeat visits, fostering brand loyalty in a highly competitive retail environment.
Another unique concept store opened its doors in Dubai in the Middle East back in 2021, THAT Concept Store. This is a place for creative souls, where everyone can be unique together. Majid Al Futtaim Lifestyle’s decision to bring THAT Concept Store to Dubai in 2021 was made following a deep analysis of customer needs and global trends. THAT continues to raise the bar since becoming the first complete lifestyle concept store in the region, with the latest curated fashion, art, home and beauty, offered by contemporary, luxe brands. The store boasts a collection of more than 300 international and regional brands from established and emerging designers.
Several global department stores have successfully reinvented themselves to stay relevant in the rapidly evolving retail landscape. Below, RLI highlights just a few notable examples:
Through the use of experiential retail and adaptive spaces, department stores are reimagining their role in the modern retail landscape.
The remodel of Nordstrom Bellevue reached completion earlier this year, unveiling a contemporary aesthetic and an array of new additions. Spanning 285,000sq ft across three levels, the newly revamped space promises an immersive shopping experience, embracing the latest trends in fashion, style and beauty. The remodel journey began in the fall of 2022 and culminated in the spring of 2024, marking a milestone for the retailer. According to Nordstrom representatives, the remodel reflects the company’s commitment to evolving alongside its clientele, adapting to their changing preferences and expectations. One of the most noticeable features of the remodelled store is its single-surface floor, designed to provide flexibility and adaptability to evolving customer demands.
This layout allows Nordstrom to adjust and redefine its departments over time. Along with new aesthetics, the remodel has also introduced many new services and amenities aimed at enhancing customer satisfaction. From a relocated Beauty department to a dedicated Stylist Lounge, the store is now equipped to cater to every aspect of the shopper’s needs.
Arguably the largest and best-known department store on the planet, Macy’s, continues to lead the way with the innovations and renovations taking place within the company. Recently the business has introduced a new concept, Macy’s Backstage, which is an off-price retail concept within existing stores to attract price-sensitive customers. Macy’s Backstage sells off-price clothing, decor, toys, beauty products and more. Unlike outlets, it is not filled with clearance items or previously sold products.
Expect a large number of items made specifically for Macy’s Backstage, as well as closeouts and overruns. Despite being marketed toward the younger, diverse, value-driven customer, Macy’s Backstage is a place not only for trendy fashion but also for an ever-changing selection of women’s, men’s and kid’s clothing, plus, gifts, back-to-school fashion, beauty, home decor, gourmet food, pet supplies and more. The company continues to produce experience-based stores that have an emphasis on experiential retail with initiatives like STORY at Macy’s, a rotating store concept with new themes and merchandise every few months. Finally, their omni-channel strategy has featured an integration of digital and physical shopping experiences with mobile apps, BOPIS and same-day delivery.
Since its founding in 1831, Takashimaya has grown as a people-centred department store that enhances and supports customers’ lifestyles while closely meeting their needs. As part of its global growth, the company has opened new stores in key international markets to extend its brand presence, hosted cultural events and exhibitions to attract visitors and enhance the in-store experience and they have enhanced their online shopping capabilities and incorporated advanced digital tools for a better customer experience. Recognizing the need for innovation, the company reopened its Kyoto store last October after a significant revamp.
The renovated Kyoto Takashimaya has been reimagined as a shopping centre, featuring the popular Nintendo store and the renowned Tsutaya Bookstore in its new annex, T8. The imposing Mario statue at the Nintendo store entrance symbolises Takashimaya’s ambitious strategy targeting Kyoto’s younger demographics. Adjacent to the original Kyoto Takashimaya, T8 consists of a building with seven floors above ground and one below, boasting a total floor area of approximately 13,000sq m.
Started as a kimono store in 1886, Isetan is today now a famous destination known for high fashion shopping. Their recent innovations include the introduction of pop-up stores, with frequent pop-up stores and events keeping the shopping experience fresh and exciting for customers. They have also expanded their gourmet food halls to attract food enthusiasts and increase foot traffic and they now host cultural and seasonal events that align with Japanese traditions and attract local customers. The sprawling flagship in Shinjuku is spread out over nine floors, each offering something special. There’s a big fashion focus, with local Japanese brands sitting beside international names.
Lane Crawford, part of the Lane Crawford Joyce Group is a global luxury fashion, beauty and lifestyle department store that offers the largest designer portfolio, carefully selected by Lane Crawford’s team of experts who travel the world selecting the very best items for its customers. In terms of its innovation and reinvention like the rest of the sector, the business has focused on curating luxury fashion and lifestyle collections to differentiate itself from competitors, it has enhanced its in-store experience with investment in personalised services, including personal styling and bespoke tailoring and finally it has combined its digital and physical integration with a strong omni-channel strategy with seamless integration of online and offline shopping experiences.
Recently the company has linked up with South Korean designer brand Bonbom on an exclusive collection that gives the iconic Metallica graphic T-shirt a high-fashion makeover. The collection was launched on 17 April at Lane Crawford’s IFC, Shanghai and Chengdu stores, as well as online.
Wako Co., Ltd., the specialty department store situated in Tokyo‘s Ginza shopping district, announced the completion of a new space back in July, which is part of an extensive remodelling project for its flagship location. The visionary design of a new space, led by artist Hiroshi Sugimoto and architect Tomoyuki Sakakida of the New Material Research Laboratory, introduces an immersive experience centred on the concept of the ‘Theatre of Time’. At the heart of the renovated space lies the ‘Stage’, an architectural marvel reminiscent of giant clock hands. Around the stage runs a corridor enclosed by wooden grilles, allowing visitors to stroll comfortably around the sales area.
WOW Concept Madrid is designed to provide customers with a dynamic, engaging, and memorable shopping experience, using a variety of experiential retail tactics.
The basement floor has been thoughtfully designed as a haven for designers, craftspeople and visionaries at the forefront of fashion, jewellery and modern art. This curated space honours Japan’s rich cultural heritage while also showcasing innovative brands that push the boundaries of creativity and design.
The recently launched SKP Wuhan department store and retail promenade ‘K Avenue’ designed by Sybarite, is an ambient and curated destination where the signature department store experience interweaves with the adjacent pedestrianised retail promenade as an incomparable shopping enclave. It is an example of integrated retail and lifestyle placemaking that embraces the transition, flow and connectivity between SKP operated indoor-outdoor retail over 130,000sq m. Following the successful department stores in Beijing (2016), Xi’an (2018) and most recently in Chengdu (2022), Wuhan is the first SKP in Central China, located in the Wuchang District cultural zone.
SKP, despite its scale, is always about creating destinations and intimate spaces for its customers to reconnect and want to spend time in. SKP Wuhan proposes an oasis environment within the city – a lush garden space with reflective water features that has been cut into the centre of the fifth floor. A glass ribbon wraps around the garden and traces the ellipse structure of the floors below seamlessly connecting customers from the surrounding restaurants into the escapist botanic landscape.
The upmarket Galeries Lafayette French department store chain is the biggest in Europe and in a world where sustainability and environmental responsibility have become essential imperatives; Galeries Lafayette has this year positioned itself as pioneers of circular fashion with the launch of its flagship event: Le Nouveau Cool. From 19 April to 23 June 2024, the famous Parisian department store was transformed into a temple of creativity and sustainability, offering its customers a unique shopping experience focused on reinvention and circularity. As the department store continues to reinvent itself amongst an ever-changing retail landscape, this initiative coincided with Earth Day, emphasising the urgent need for innovative solutions to combat climate change and reduce waste in the fashion industry. Galeries Lafayette’s commitment to circular fashion aligns perfectly with the spirit of Earth Day, as it strives to redefine the standards of fashion through sustainable practices. The New Cool by Galeries Lafayette was all about shaping the future of fashion by supporting circular and more sustainable creation.
The Spanish company El Corte Inglés is one of the biggest department stores in Europe and continues to innovate by diversifying its offerings, with expansion into travel, insurance and telecommunications just some of the ways they are looking to diversify revenue streams. They are also strengthening their online presence with improved logistics and delivery services and their sustainability initiatives are focused on sustainable fashion and reducing environmental impact. The company also opened back in June a new large El Corte Inglés Supermarket in El Escorial, a transformation of the space previously occupied by Supercor. The new commercial space, which is distributed over two floors, has a large supermarket 2,600sq m on the ground floor and also features a Gourmet Club space with a tasting bar of 300sq m. Located at Carretera de Guadarrama Road, 59. Km 7, this new large Supermarket incorporates striking novelties that make it unique in its category.
Harrods is an iconic department store and in recent times it has had an increased focus on luxury, strengthening its position as a luxury retailer with exclusive product offerings and high-end services. It continues to incorporate extensive renovations and updates to the flagship store to enhance the shopping experience. In addition, the company has expanded its online offerings, with the business pouring significant investment in its e-commerce and digital marketing to reach a global audience. Just last year, the company launched a new luxury destination on the first floor – its revamped lingerie, sleep and lounge department – marking the retail giant’s first phase in its expansive womenswear redevelopment project. Spreading across almost 16,000sq ft and holding 47 coveted brands including Olivia Von Halle, Livy, Luna Mae, Barrie and Skims, the new space in Harrods is ultra-chic and offers a sneak peek of the future look and feel of the entire floor.
Meanwhile, in December, the company was delighted to introduce two opulent havens on the first floor of its iconic Knightsbridge emporium: ‘Holiday & Swim’ and ‘Evening & Occasion’ mark the second phase of the eagerly awaited womenswear redevelopment project. Spanning nearly 10,000sq ft, these spaces are dedicated to pivotal moments in a client’s social calendar—a sun-soaked escape to warmer climes and an elegant soirée.
Fenwick is known for providing the finest selection of luxury from around the world across fashion, beauty and lifestyle, curated into a sophisticated shopping space and bestowed with in-store events, treatment rooms, bespoke services and popular restaurants. The world-renowned department store began earlier this year renovation at its flagship space in Newcastle, which in total will see £40M spent on modernising the site for future generations.
In recent times Selfridges has invested heavily in creating unique in-store experiences, including pop-up shops, art installations and live performances. The store has launched a range of sustainable initiatives, including Project Earth, aimed at driving change in the retail industry through sustainable practices and they have put significant investment in their online platform to create a seamless omni-channel experience for customers. The Beauty Spot, meanwhile, is Selfridges’ newest destination for the world’s most creative and experimental retail concepts, This has launched with an exclusive residency from REFY. The partnership with REFY marks the beginning of a series of exclusive brand residencies, with the initiative building on the success of previous beauty projects at the Selfridges Corner Shop. The REFY Beauty Spot will be located at Selfridges London Beauty Hall from 24 May to the end of September.
Harvey Nichols, the UK-grown but Middle East-owned department store continues to make waves across the region with groundbreaking and innovative stores. Brought into the country by the Al Tayer Group, Harvey Nichols has locations in Kuwait, Qatar, Saudi Arabia and the UAE.
In recent times, its Dubai store at the Mall of the Emirates has been undergoing renovations to enhance customer experience across all departments, including the final phase of the fully renovated men’s footwear department. The dedicated area unites men’s footwear in one central location, with the overall men’s department displaying more than 130 brands on the second floor. The newly refurbished shop-in-shops provide a sleek yet welcoming atmosphere with carefully curated interior that resonates with the brands own ethos.
One of the biggest concept stores in the Middle East remains Tryano, a homegrown brand by Chalhoub Group that is dedicated to children, beauty and leather goods. Situated inside the Yas Mall shopping mall in Abu Dhabi. The store extends over 20,000sq m on three levels and brings together 250 local and international brands. Chloé, DKNY and Lili Gaufrette, all for children, are featured on the second floor, while beauty products by Atelier Cologne, Clarins and M.A.C. and handbags by Chanel, Paul Ka, Lancel, Mysuelly and more are available on the first floor. Inspired by the ‘Garden of the imagination’ theme, the specialist store wishes to attract customers within a familial, immersive and playful environment, thanks to original settings and vivid decorative elements, such as a digital fountain and a merry-go-round.
Another experiential concept store by Chalhoub Group is that of Level Shoes, a globally recognised retail destination dedicated to the world of designer shoes & accessories for women, men and kids, with their flagship store located in the heart of The Dubai Mall. The 96,000sq ft curated space is divided into 23 designer boutiques and five multi-brand areas made up of more than 250 global brands. Focusing on a unique shopping experience, it also features a wide range of bespoke services including Personal Shopping, The Personalisation Hub, The Cobbler and more. Dedicated to a seamless customer experience, Level Shoes is a true hybrid concept. Customers can shop online at levelshoes.com or via the Level Shoes App where new styles are added daily.
The reinvention of global department stores is a multifaceted approach aimed at enhancing customer engagement and staying competitive in a rapidly evolving retail landscape.
The reinvention of global department stores is a multifaceted approach aimed at enhancing customer engagement and staying competitive in a rapidly evolving retail landscape. By integrating technology, expanding product offerings, and creating immersive experiences, these stores are transforming themselves into destinations that offer more than just shopping.
Whilst mentioned in this article is just a small selection of department stores around the world that are embracing the changing times and needs of customers, they have adapted to changing consumer preferences and market conditions by revelling in innovation, digital transformation and focusing on experiential retail, ensuring they remain relevant and competitive in the global market.
