What: In the US, department stores are desperately trying to differentiate thanks to an offer which goes beyond the international, standardized, well-known brands.

Why it is important: This raises both the point of being able to detect new labels and talents, and be able to develop them. In fact, this is a call to revert to the initial role of department stores, at the cost of reverting to a wholesale business model.

Department stores, including Macy's, Kohl's, and Nordstrom, are actively adjusting their strategies to engage younger consumers. Notably, Nordstrom has successfully attracted more next-gen customers compared to its competitors. These legacy retailers are integrating strategies like smaller store formats, expanded brand partnerships, and a focus on independent designers to stay relevant.

The effectiveness of influencers is diminishing as next-gen consumers shift their focus from authenticity to the frequency of posts and follower counts. This trend emphasizes the importance of an influencer's visibility over their perceived genuineness. Consequently, brands with a strong online presence and engaged followers are becoming crucial partners for traditional retailers.

Retailers are leveraging independent brands to differentiate their offerings. For instance, Nordstrom has enriched its assortment with emerging designers, which helps attract fashion-forward younger customers. Similarly, Target is harnessing its partnership with Shopify to introduce indie products both online and in physical stores, enhancing its appeal to next-gen shoppers.

The collaboration with indie brands, however, presents challenges such as maintaining product quality and aligning brand values. Lessons from failed partnerships like Kanye West's Yeezy and Gap highlight the risks involved. To mitigate these risks, retailers are establishing dedicated teams to vet potential partnerships and engage their consumer base in the curation process, ensuring the brands they onboard resonate with their target audience. This approach aims to solidify consumer loyalty and adapt to the evolving retail landscape.

US department stores are in need of new brands