Printable version here

The rise of department stores in the mid-19th century marked the beginning of a commercial revolution that shaped retail and consumer culture as we know it. The world's first department store, Au Bon Marché, founded by Aristide Boucicaut in 1852, introduced groundbreaking commercial innovations and created a capitalist business model that birthed unique and effective marketing techniques still commonly used by retailers today.

The IADS had the opportunity to visit the “Birth of Department Stores” exhibit on display from the 10th of April to the 13th of October 2024 at the Musée des Arts Décoratifs in Paris. The exhibition's second part (IADS is a partner) will be presented at the Cité de l'Architecture et du Patrimoine from November 2024 to April 2025. It will place the emergence of department stores in a broader context, looking at the history of these institutions over time and in an international context.

Such excitement around the topic of department stores called for a piece on their history, reminding us why we love this model so much. From the seven hundred pieces on display, ranging from posters to clothing and toys to furniture, the exhibit allows visitors to understand the evolution of commerce and department stores from 1852 onwards. The long history of department stores underscores their lasting impact on both the commercial landscape and societal norms, prompting reflection on future innovations that will define the next era of retail.

We connect in the below piece the most recent initiatives spotted around the planet to their origins, and try to see if modern department stores remain true to their original groundbreaking role.

Department Stores started a commercial revolution

The exhibit outlines the rise of department stores in Paris, France, where the first-ever department store was born, becoming the new template of modernity and consumerism in the 19th century.

The rise of department stores in the mid-19th century started a commercial revolution that fundamentally transformed retail and consumer culture. Au Bon Marché’s Aristide Boucicaut laid the foundations of modern commerce with major commercial innovations like the invention of sales, fixed prices and seasonal exhibitions, children as a new commercial segment, and even mail-order sales.

Each of these innovations answered a specific question. Seasonal sales solved the question of extra inventory and were an occasion to attract less affluent customers willing to shop at Le Bon Marché despite limited means. Exhibitions helped maintain customer interest throughout the year and reduced slow periods. By organising events for products like household linens and fashion accessories, department stores could sustain a steady flow of customers. The use of free advertising calendars given to customers and posters by prominent illustrators further enhanced the appeal and visibility of the store, creating a culture of regular shopping events that encouraged consumerism.

Including children's sections in department stores marked a significant shift in retail strategy. As societal views on childhood evolved, children became a new commercial target and an additional way to attract female customers. Stores began offering a variety of children's clothing and toys, reflecting the growing importance of children in the family unit. Since then, department stores always maintained kidswear and toy sections, sometimes making them a strength in their business, as is the case at Manor, especially with toys. Despite ongoing challenges with kids-related products, department stores continue to find ways to represent this segment, showing the importance of an extensive product offer catering to their primary customers, women. Department stores show great agility in mitigating the impact of kids' product slowdown. For example, in May 2024, Galeries Lafayette Haussmann partnered with US famous retailer FAO Schwarz: the company took over the existing toys department to create a 620 sq. meter new toy area featuring iconic elements like toy soldiers and a giant piano. Differently, Boyner has embraced this trend with their new "Dynamic Teen store" at Boyner İstinyePark in Istanbul, which focuses on sports and entertainment for Gen Z and Gen Alpha. Department stores can create lifelong customers by introducing children to shopping alongside their mothers, appealing to them as teenagers, and retaining them as young adults.

Mail-order sales were another revolutionary aspect introduced by department stores. Boucicaut's colourful catalogues helped Au Bon Marché reach people outside of Paris, making its products available to more customers. American retailers like Sears and Montgomery Ward in Chicago later perfected this model. Unlike the earlier French mail-order businesses, which targeted niche markets or elite customers, Ward's model was designed for the general public, particularly those in rural areas. He issued the first general merchandise catalogue in 1872, which was simple and easy to use, listing 163 items on a single sheet of paper. Ward also introduced innovative product return practices with the "satisfaction guaranteed or your money back" policy in 1875, which built customer trust and loyalty. This innovation was significant in the United States, where distance had previously made it hard for people to access various products. Department stores were indeed at the forefront of distance ordering and delivering customers to their homes.

Today, this foundation has transformed into e-commerce. Even though some department stores were late in the digital commerce race, the COVID-19 pandemic forced them to transform rapidly. They now offer options such as ordering in-store for home delivery and same-day delivery services that cater to the demand for instant gratification. Omnichannel strategies like "Buy Online, Pick Up In-Store" (BOPIS) blend the convenience of online shopping with the immediacy of in-store pickup. At the same time, integrated approaches ensure seamless transitions between online and offline experiences. By constantly observing their customers and sticking to their needs, these innovations provide convenience and satisfaction, prompting us to wonder what new innovations will define the next era of retail.

By putting women at the centre, department stores started a social revolution

Department stores played a significant role in the liberation and emancipation of women, transforming public spaces and social norms during the late 19th and early 20th centuries. These establishments offered women a socially acceptable venue to step outside their homes, facilitating a new form of public participation that was previously limited or entirely restricted.

Historically, women's presence in public spaces was heavily regulated and often frowned upon unless a man accompanied them. Middle-class women, in particular, faced societal scrutiny if seen unaccompanied in public, as this was associated with scandalous behaviour. The emergence of department stores began to change this dynamic. These retail palaces were designed to be inviting and luxurious, featuring elaborate displays, comfortable lounges, and various departments catering specifically to women's needs and desires. The store wasn’t just about shopping; it was about creating a space where women could socialise, explore, enjoy cultural events and assert their presence in the public realm without needing male accompaniment. Department stores' architectural design and marketing strategies were crucial in promoting this new public role for women. Stores like Le Bon Marché in Paris and Macy’s in New York were true social hubs.

Department stores also played a pivotal role in employing women, marking a significant step towards economic independence for women. Positions such as saleswomen allowed women to work outside their homes in a respectable environment, breaking away from traditional roles confined to domestic, agriculture and/or factory work. Despite extremely difficult working conditions and a highly patriarchal culture, this employment provided financial independence and fostered a sense of self-agency and personal growth. Like men, women could also occupy management positions. Overall, cities became more attractive as they transformed into job centres, another aspect of the social revolution department stores were part of.

In essence, department stores acted as catalysts for social change. They gave women unprecedented freedom to explore public spaces independently, engage in economic activities, and participate in the booming consumer culture. This newfound public presence was a first step towards gender equality, challenging and gradually altering the misogynistic norms that confined women to private, domestic spheres. So, the rise of department stores was a commercial revolution and a social one.

From shopping palaces to modern consumption and cultural landmarks

The department store in the late 19th century stood as a monument to the new bourgeoisie class and used its members' entrepreneurial drive to accelerate growth and create a profitable business model. The middle class of that time fed off of the material world; the wide variety of garments and surplus of goods catered to the bourgeoisie, who would flock to put themselves on display at these stores.

Department stores became the symbol of modernity, not only through their innovative architecture but also by pioneering a new commercial system that laid the groundwork for contemporary marketing. Large, vibrant advertising posters were on display at the exhibit, showcasing elegant dresses that embodied the desired lifestyle of the time — depicting scenes like women strolling on beaches and in city streets while dressed in their finest attire. Making department stores visible outside of their premises was crucial: for the first time in history, these ads showed the act of shopping driven by desire rather than necessity, creating what was later called consumption.

Also, department stores developed techniques based on the notion that customers are not merely buyers but visitors who have come to experience the grandeur of the store. Usually featuring unique and innovative architecture and located at the heart of cities, these stores transformed shopping into a leisurely activity akin to attending the theatre, portraying department stores as attractions first and shopping destinations second. Nowadays, retailers are increasingly curating experiences to attract and retain consumers. Despite changes in the retail landscape, they continue to employ strategies that emphasise their role as destinations, leveraging stunning architecture and interactive displays to create engaging environments.

Historically, department stores have been architectural marvels designed to impress and entice visitors, contributing to reshaping city centres. This tradition continues as modern department stores often feature innovative and beautiful designs that draw people in, creating a sense of wonder and luxury. For example, this is the case at the Hyundai Seoul, which has a large atrium filled with trees, and Birmingham's stunning Selfridges store building. In addition, window displays and in-store pop-ups remain central to the department store experience. These visually captivating presentations are designed to inspire desire and imagination, transforming shopping into an event. Interactive elements, such as live demonstrations, themed displays, and experiential zones, enhance this immersive experience, as is the case at SKP-S. Over time, they expanded their influence and revenue potential thanks to new ventures outside their original premises. Most expanded to secondary cities, with stores becoming the new city centre landmarks.

Department stores emerged as cultural landmarks, blending innovative architecture and immersive shopping experiences to attract and retain consumers. Today, they continue to adapt to modern retail challenges by integrating digital advancements and maintaining their status as cultural and social hubs. The focus on creating a memorable experience as a primary marketing strategy ensures that department stores remain relevant and enticing to a new age of consumers. They encourage repeat visits and customer loyalty by offering a unique environment that combines shopping with entertainment and leisure. In the modern landscape, where department stores compete alongside e-tailers, positioning themselves as cultural and social hubs is more than ever pertinent to maintaining their appeal. The development of the department store from the early days of Le Bon Marché in Paris to today’s global retail giants shows their resilience and ability to adapt, innovate, and thrive in the dynamic industry. Reflecting on the rich history and impact of department stores on society, it is apparent that their evolution over time has shaped not only the retail sector but also cultural norms, paving the way for future innovations in commerce and retail. Their story is one of continuous change, a testament to their foundational role in the commercial and social fabric of society.

Credits: IADS (Katie Clark & Morghan Pollard)