What:

Despite the shift towards omnichannel retail, the traditional department store model continues to resonate with consumers when executed with strong operations, engaging environments, and superior service standards.

Why it is important:

This insight reveals that while retail channels may evolve, the fundamental appeal of comprehensive, well-curated department stores remains strong when properly maintained and operated.

The enduring success of well-run department stores challenges assumptions about the format's decline, with John Lewis exemplifying how traditional retail models can thrive through excellent execution. The retailer's evolution into an omnichannel brand, while maintaining its department store essence, demonstrates the format's adaptability. Department stores' inherent advantages include flexible space allocation, authority in key categories like beauty and fragrance, and the ability to partner with brands for exclusive launches. Their role as physical shopping anchors remains significant, as evidenced by community reactions to potential closures. While international expansion proves challenging due to cultural specificity, successful department stores like John Lewis maintain their relevance through distinctive own-brand offerings, inspiring store environments, and superior customer service, as demonstrated by the retailer's recent success in areas like technology sales and customer support.

IADS Notes:

The enduring relevance of well-run department stores, as exemplified by John Lewis, is supported by significant developments throughout 2024-2025. According to February 2025's Drapers coverage, John Lewis implemented a comprehensive transformation strategy combining enhanced customer service with technological innovation, including the revival of its "Never Knowingly Undersold" pledge modernized with AI technology. This successful blend of tradition and innovation was further evidenced by October 2024's WWD report of an £800 million investment in store renovations, particularly focusing on beauty departments and customer experience. The strategy gained momentum through various initiatives: April 2025's Retail Bulletin highlighted how department stores can serve as retail beacons through experiential elements, while May 2025's launch of the Jamie Oliver cookery school at Oxford Street demonstrated successful integration of hospitality experiences. July 2025's Retail Week coverage showed John Lewis overtaking M&S in customer satisfaction, validating its service-focused approach. The retailer's transformation extends beyond physical improvements, with February 2025's addition of 49 new fashion brands showing how department stores can maintain relevance through careful brand curation. This comprehensive approach to balancing omnichannel capabilities with physical retail excellence, as noted in October 2024's Retail Week interview with Peter Ruis about making John Lewis "radically relevant," demonstrates how traditional department stores can successfully evolve while maintaining their essential role as retail anchors.

Despite the demise of many department stores, the format remains relevant today