We've heard this song before, haven't we? Department stores are not getting their fair share of Gen X and Y consumers and are taking steps to change that.
Last October, a DailyFinance report concluded that Baby Boomers, worried about their retirements and other financial concerns, were pulling back the most on purchases and that retailers were turning more of their marketing attention to shoppers between the ages of 10 and 45. The same report acknowledged that Gen Y'ers (10 to 28 years old at the time) were the most difficult to reach because of the ever expanding media options they have to choose from.
"The financial crisis and the recession ushered in the biggest change in consumer behavior in 70 years, and we're not going back,' Nancy Koehn, professor and retail historian at Harvard Business School, told the Chicago Tribune.
According to the Trib, one of the biggest changes department stores have made is in their responsiveness to changing fashions. Many today are looking to follow in the footsteps of their fast-fashion competitors, such as Forever 21, H&M, and Zara, as they seek to grab share of the 25 and under market.
A RetailWire poll in August of this year found that 85 percent believed that the fast-fashion supply chain provides a competitive advantage over traditional sourcing methods.
J.C. Penney recently launched an exclusive line under the MNG by Mango label. Mango is one of the fast-fashion houses that Penney and others have to go up against.
Macy's has followed suit with the Material Girl line from Madonna and her daughter Lourdes.
Sears is the latest to get in on the act with the announcement that it will launch a new line, UK Style by French Connection, in 500 stores early next year.
John Goodman, executive vice president of apparel and home for Sears Holdings, said, "French Connection is a world leader in contemporary fashion. This addition to our brand portfolio will significantly increase our relevance among younger customers while strengthening our effort to re-energize our fashion offerings at Sears. The launch of UK Style by French Connection signifies our continued commitment to compelling fashion and great value."
There are other approaches, as well. Bon-Ton Stores has created an online advisory panel of 5,000 teenagers. Barbara Schrantz, executive vice president of marketing and sales at Bon-Ton, said the purpose is to "find out what it takes to get them to shop department stores." Ms. Schrantz said the chain discovered that teenagers weren't all that interested in exclusive brands. Instead, she said, they were looking for stores that had the right fashions at the right price.
Discussion Questions: Can department stores be relevant to Gen Y consumers today? What concrete steps can retailers take towards that end?
- Department stores: Mad rush for market share - Chicago Tribune
- Retailers turn away from baby boomers, focus on younger customers - DailyFinance
- Sears Announces UK Style by French Connection; Exclusive Union a Major Step Forward for Sears Contemporary Fashion - Sears/PRNewswire
- Sears is Moving Fashion Forward - Chicago Tribune