What: Mid-market department stores like Macy’s, Kohl’s, and Nordstrom are losing ground to online fast fashion and off-price competitors, despite efforts to innovate and downsize.

Why it is important: To survive and thrive, these department stores need a complete overhaul of their value proposition. This involves curating unique, competitively priced, and exclusive product selections that stand out from online and budget-friendly options. Given their existing physical presence, these stores have an edge if they can leverage it correctly by offering products that resonate with current consumer preferences and trends.

Mid-market American department stores are at a critical juncture, facing declining sales and competition from online giants and off-price retailers. Despite closing unprofitable locations and experimenting with new retail concepts, these traditional retailers continue to lose customers. Experts argue that mere innovation isn't enough; these stores need to fundamentally reinvent their product offerings. By focusing on unique, well-priced, and exclusive items, department stores can leverage their physical presence to offer a shopping experience that online platforms cannot replicate. However, transforming such entrenched retail giants is a monumental task, akin to "turning around the Titanic." Yet, with strategic brand partnerships, refreshed in-house labels, and a focus on a more curated and exciting product mix, there is a pathway to relevancy and success in today's retail landscape.

Innovation won’t save department stores. The right products will.