It’s true that the luxury field is thinning out, and that is helpful for the others that survive. But just because others in the category have failed doesn’t mean that Bloomingdale’s will necessarily be successful. Frankly, the Bloomingdale’s brand has lost a lot of luster over the years and it needs a lot of work to make it a leader in luxury. So I do agree with Jeff Gennette that the opportunities for Bloomingdale’s have improved, but whether or not that leads to success is an entirely different matter. With all the challenges Macy’s is facing, I remain skeptical that Bloomingdale’s can be transformed into a luxury success story.

I agree that there will be some market share up for grabs. I also agree that some of Bloomingdale’s store locations will pick up a slice of this. However I find Macy’s management rather deluded. They seem to be divorced from reality in that they don’t understand that their stores and general proposition – including some of Bloomingdale’s – are sub-par. They are increasingly not providing what shoppers want. On that basis, picking up share in any major sense is just theory, not reality.

Um, not to be a jerk, but what luxury market? I think that market is shrinking as wealth continues to shift and everyone else remains concerned about their futures.

I don’t think Bloomingdale’s, or any other department store, really, will win back that market. It’ll be brand loyalists who go direct to the brands.

One broad theme we will see in the coming year in many product categories is that the bankruptcies and major contractions in store counts among struggling retailers will put meaningful market share up for grabs allowing stronger players to capture incremental growth. Luxury is a rather mature category, which is likely to recover slowly. Nordstrom’s struggles and Neiman’s bankruptcy don’t fundamentally stem from weak value propositions. In most product categories and in most geographies where they compete head-to-head, both deliver a more remarkable customer experience. Moreover, there is plenty of strong local, vendor DTC and multi-brand online competition. Outside of the flagship store, for Bloomingdale’s to grab share of wallet in a contracted market, they will have to innovate to win, grow and retain new customers. Macy’s more broadly has suffered from thinking a slightly better version of mediocre is a winning strategy and they risk making the same mistake with Bloomingdale’s. One opportunity that Neiman’s missed–and Nordstrom has experimented with–is getting closer to customers with a format that is designed to “embrace the blur”… Read more »

Mr. Gennette is ignoring a key learning from COVID-19 — Q2 is not the future.

Luxury is intertwined with Bloomingdale’s brand. That is incredible brand equity. During this pandemic, as consumers, we have had something taken away from us: a wonderful and exciting retail environment. It’s kind of like getting your birthday cake with no icing. So now, as we approach more openness in the marketplace, I think Bloomingdale’ is positioned wonderfully.

Bloomingdale’s is an established brand, known for quality, and that includes luxury. Defining luxury for the retailer is important. The brands and merchandise meets certain expectations. It appears that Bloomingdale’s is going to expand on the luxury category. Gennette knows the industry. Even if everyone can see what’s happening with competitors, his observations and access to information is at a much higher level than most. With that intel, while he can’t predict the future, he can spot trends we may not be seeing from our vantage point. The industry, and specifically his company, is struggling. It will take the sharpest minds in the industry to navigate through these uncharted waters.