TOPIC

Many department store companies are closing stores. Even before Covid, it was clear that, with online becoming a greater share of total business, stores contributions were relatively shrinking. With sales per sqm falling, the role of the store is changing. However, real estate is often one of the most important assets of a department store company.

Several perspectives are emerging and need further examination:

a) We need to reduce our selling space and save on unproductive real estate,

b) Online and physical retail space are complementary,

c) We may increase partnerships with brands or other retailers and shift to a different business model for the physical stores.

a) Less retail space: if we achieve the same level of business from a combination of brick-and-mortar and online sales, then some physical selling space is redundant. In that case, should we talk about downsizing or rightsizing? How should the remaining physical space be re-organised? How should we measure its productivity?

b) Physical space supports online retail: an increasing number of online retailers are developing a physical presence. This shows that online retail needs physical retail space. However, that space may be very different from traditional department store space. Should the space be flexible? Should it concentrate on experience and service or merchandise selling?

c) Partnerships: there might be a shift towards a concession model in stores or towards a marketplace model online.

Takeaways

• Click below to read IADS's presentation and takeaways:

IADS Cross-Functional Meeting Questionnaire Presentation

IADS - Do we need less or different retail spaces - Takeaways - Sept. 21

• Click below to read Blocher Partners presentation:

Presentation IADS Functional Meeting Paris Jutta Blocher

• Click below to watch the recording of the meeting (Questionnaire Presentation):

IADS Questionnaire presentation

• Click below to watch the recording of the meeting (BlocherPartners presentation):

Blocher Partners presentation

Do we need less or different retail spaces ?

General information

• IADS Cross Functional Antitrust guidelines
• IADS Cross-Functional Meeting #4 - Invitation Letter
• IADS Cross-Functional Meeting #4 - Registration & Questionnaire

Timing

Wednesday 1 September 2021 14:00 - 17:00 Paris time (12:00 pm to 3:00 pm UTC)

To join the video meeting, click this link: <https://meet.google.com/kpv-ndcq-tad>

Otherwise, to join by phone, dial +33 1 87 40 07 19 and enter this PIN: 912 377 999#

To view more phone numbers, click this link: https://tel.meet/kpv-ndcq-tad?hs=5

Agenda

*Paris time

2 pm - 2.10 pm              Presentation of all attendants and welcome

2.10 pm - 2.50 pm         Review of participants' replies to questionnaire

2.50 pm - 3.50 pm         Guest speaker: Blocher Partners, <https://blocherpartners.com/en/>

3.50 pm - 4.50 pm         Workshop in small groups

4.50 pm - 5 pm              Conclusion and moving forward*