In a bid to revive their flagging fortunes, two of America’s oldest department stores, Macy’s and Nordstrom, are overhauling their merchandise assortments in the hope of luring back shoppers who have been straying online and to off-price retailers..
Macy’s, founded in 1858, reported a 3.4% drop in comparable sales in the fourth quarter of 2022, while Nordstrom, founded in 1901, saw its net sales fall by 3.5% in the same period. Both companies have been struggling to compete with online retailers such as Amazon and e-commerce upstarts like Rent the Runway and Stitch Fix, which offer a wider selection of products and often lower prices..
In an attempt to reverse their fortunes, both Macy’s and Nordstrom are making significant changes to their merchandise assortments. Macy’s is adding more exclusive brands and private labels, as well as expanding its offerings of home goods and beauty products. Nordstrom is also adding more exclusive brands and private labels, as well as focusing on selling more luxury items..
The strategy of focusing on exclusive brands and private labels is a common one among department stores that are trying to differentiate themselves from online retailers. Target and Walmart are also investing heavily in their exclusive brands, and Kohl’s has partnered with Amazon to sell its private label brands on the e-commerce giant’s website..
However, it is not clear whether this strategy will be successful in the long run. Some analysts believe that department stores need to focus more on providing a unique shopping experience, rather than simply trying to compete with online retailers on price..
