Department stores are "in" for the holidays.
According to a new BIGresearch study conducted for the National Retail Federation, an increasing number of consumers say they will be headed to department stores to do at least some of their holiday shopping this year. In all, 62 percent plan to shop in department stores, up from 53 percent just four years ago.
Interestingly, while the percentage of those who plan to shop in department stores is going up, the opposite is true of discount stores. Four years ago, 77 percent of shoppers planned on heading to a discount store to do some or all of their holiday shopping. Seventy percent say they will do the same this year.
A report by the Chicago Tribune suggests the move to department stores may not be a one-off event. Department stores, the research shows, are doing a better job of attracting shoppers in the 18 to 25 demographic. Seventy-nine percent of consumers in this segment said they planned to visit department stores to find gifts for the holidays.
In recent years, consumers in that age bracket have gravitated to specialty stores. The Trib report said department stores have gone to edgier advertising campaigns backed up by trendier designer and store exclusive merchandise in the apparel and home furnishings segments.
"Over the last couple of years, department stores, knowing that they are losing that customer segment, have been doing more things to bring them back," said Phil Rist, vice president of strategy for BIGresearch.
"Department stores are hitting the fashion cycle better than in the past," added Peter Morici, professor of business at the University of Maryland. "This is shaping up to be a catch-up year for department stores."
Whatever department stores have been doing appears to be working. In September, the channel saw sales increase 8.4 percent, the largest single month increase dating back to January 1997.
Discussion Questions: How do you explain the growing interest in department stores as a shopping destination, especially among young adults? How are specific chains breaking with the past (or perhaps reclaiming it) to become shopping destinations?