Over the last decade, department stores – once shining beacons of commerce and consumer culture – have found themselves increasingly under pressure. From the impact of the pandemic to the relentless rise of eCommerce, deepening labour shortages, and shifting shopper preferences, these venerable institutions are realising that they must adapt, or risk fading into irrelevance. Just look at Macy's – a retail icon that grew at an incredible rate in the early 2000s, now confronting mass closures to stave off the creeping threat of unproductiveness.

Set against this challenge, a new vision is emerging – one that views digitalization not as a threat, but as an opportunity to redefine the department store experience for a new omnichannel era. Around the world, forward-thinking retailers are leveraging innovative strategies and technologies to streamline operations, engage employees, and delight customers in ways that online commerce simply cannot match.

Why customers pick department stores in the eCommerce era

Department stores have a unique ability to turn shopping into a fun, social experience. They are vibrant hubs of activity with new collections and sales, especially during festive seasons, and deliver the experiential retail that customers crave. The presence of helpful and knowledgeable sales associates elevates this experience, providing the all-important human touch while facilitating easy, consumer-friendly policies. Great customer service is crucial not only for attracting shoppers to stores, but also for encouraging them to spend more –according to Alice POS, 42% of Americans will stop shopping with a brand after just two bad experiences, while 52% of consumers say they have made an additional purchase from a company after receiving positive customer service.

To deliver on the promise of experiential shopping, department stores must empower and motivate the people who bring in-person shopping to life: their frontline employees. Retail executives that invest in their customer-facing staff, providing them with the knowledge, skills, and support they need to excel, are better positioned to create the kind of personalised, memorable experiences that keep customers coming back time and time again.

Frontline tech delivers an outstanding shopper experience

This people-centric approach is exemplified by the partnership between Central and Robinson Department Stores (CDS), one of Thailand's largest department store chains, and YOOBIC, a virtual employee engagement platform designed for frontline teams. In 2020, CDS announced plans to merge the processes and support teams from its Central and Robinson brands to offer shoppers an unrivalled brick-and-mortar retail experience. The ambition was big – to create Thailand's first truly omnichannel department store – but so too were the hurdles: fragmented communication, inconsistent task execution, and a lack of accountability and visibility into store performance.

To overcome these obstacles, CDS turned to YOOBIC. Thanks to the platform's targeted, role-based communication tools, the retailer is now able to ensure the right operational information reaches the right employees at the right time, fostering greater consistency and compliance across its locations, like Visual Merchandising updates. YOOBIC's task management features provide Central Retail's leadership with real-time visibility into store execution, enabling them to track key performance indicators and hold teams accountable for results.

The benefits of the partnership extended far beyond operational efficiency, however. By creating digital communities within each of its 77 stores, CDS has fostered a greater sense of connection and belonging among its 4,000-strong frontline workforce. The platform's mobile-first learning and development system has also opened the door to bite-sized, on the-go training, empowering team members with the knowledge and skills needed to deliver exceptional customer experiences.

CDS's commitment to employee development is exemplified by their upcoming relaunch of training programs, which will offer regular incentives for top performers during the initial months, supported by in-person field coach teams who'll promote a blended digital and face to-face learning approach. The workforce's enthusiasm for professional development and digitised workflows is already evident in the impressive 85% Weekly Active Users (WAU) on the YOOBIC platform, sustained over the past 5 months, and the creation of 400,000 missions in the last year, which have had an impressive 87% completion rate. Effective employee training and development has also been crucial for attracting and retaining talent –according to a YOOBIC survey, 49% of frontline workers don't think that onboarding prepared them well for their jobs, while 64% want opportunities for career growth within the organisation.

Tapping into employees' creativity and passion

The lessons of YOOBIC and CDS's collaboration highlight the transformative impact of structured operational communication for store teams, moving beyond basic tools like emails, Whatsapp, or Line to a unified and intuitive communications platform. YOOBIC has not only enabled seamless communication among store staff, however, but has also provided a direct channel for the C-Suite to engage with frontline workers. This direct contact allows senior management to share their vision, provide guidance, and gain valuable insights from the employees who interact with customers daily. Throughout Southeast Asia – and indeed across the globe – department stores are waking up to the fact that their most valuable asset is their people. By giving frontline workers a voice, a sense of purpose, and the tools to succeed through advanced communication strategies, retailers can tap into a wellspring of creativity, passion, and customer-centricity that no eCommerce algorithm can replicate.

Of course, this transformation is not without its challenges. Shifting long-standing practices, investing in new technologies, and fostering a culture of continuous learning and innovation requires vision, commitment, and resources. But for department stores that get it right, the rewards are immense – not just in terms of sales and market share, but in the creation of a more vibrant, engaging, and human-focused retail landscape.Today, CDS enjoys a more knowledgeable and empowered workforce, better equipped to deliver personalised and exceptional shopping experiences. The sense of community and purpose fostered among the company's employees is a huge part of this, not only improving job satisfaction and retention, but also promising a positive impact on customer loyalty and sales.

As CDS continues to invest in its teams and technology, it sets a powerful example for others seeking to thrive in an increasingly competitive and digital world. The success of the brand's partnership with YOOBIC demonstrates that by prioritising the human element in retail, department stores can create a more resilient, adaptable, and profitable future.So, to department store leaders around the world, the message is clear: embrace the power of your people, and let digitalization be the catalyst for a retail renaissance that will stand the test of time. The future of your industry – and the hearts and minds of your customers – depends on it.

Fabrice Haiat - CEO & Co- founder / YOOBIC

YOOBIC is the #1 frontline digital workplace, dedicated to addressing frontline teams' challenges. The platform provides communication, learning and development, operations, and HR teams with the app they need to drive operational excellence while drastically improving the frontline employee working experience.

YOOBIC was founded in 2014 by 3 brothers, Fabrice, Avi and Gilles Haïat. Together they created a unique digital workplace that helps businesses empower their frontline teams for success, wherever they are, through effective communication, mobile learning and, digitized task management - all in one place.

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