How department stores are reinventing their womenswear offering to boost cross-selling
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To better reinvent themselves and increase cross-selling, department stores are rethinking their womenswear offering by combining creative labels with ‘heritage’ brands. From Bloomingdale's to Galeries Lafayette, the International association of department stores (IADS) has identified the different hybridisation strategies implemented by department stores.
Offering novelty without disorienting
According to the IADS, department stores are now adapting their assortments to offer novelty without disorienting. While some brands need to arouse curiosity, others need to reassure by being recognisable. “Retailers succeed when innovation is part of a trusted business context,” the specialist association noted.
At Bloomingdale's, the colourful collections of brands like Farm Rio and Alémais are offered alongside the more ‘heritage’ aesthetic of Polo Ralph Lauren.
The hybridisation of the American department store chains offering also plays out through its distribution channels. Online, only certain fast fashion brands are found, while in-store, spaces designed as multi-brand concepts have been set up to attract a younger audience and mix new labels with well-known names like Levi's.
In Ukraine, the Tsum Kyiv department store relies on recognised luxury brands to guarantee sustained traffic while launching new names, such as Guest in Residence, a cashmere brand with a colourful aesthetic. According to IADS, it was a successful launch, thanks in particular to impactful visuals and good spring timing. It was also noted that the department store has dedicated an entire floor to Ukrainian designers.
The Danish department store chain Magasin du Nord also confirms the importance of placing the innovation of young labels within a trusted commercial context. According to the company, only this combination can lead customers to trust brands they do not know.
In Paris, the complete reorganisation of Galeries Lafayette Haussmann, which aimed to structure the offering by price and not by customer age, while relying on cross-selling data analysis, proved to be a commercial success. The association's report stated that there was “increased dynamism, better customer circulation and more profitable brand neighbourhoods”.
The integration of transgenerational brands, such as the label Skims, is part of this approach, favouring fashion relevance rather than age segmentation.
But ultimately, what makes a good brand neighbourhood? According to the IADS, it largely depends on the balance between brand image, traffic flow and productivity per square metre. Finally, it should also be kept in mind that the rise of online sales reduces the importance of physical neighbourhoods and allows for more flexible store planning.
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