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Fast-forward 15 years and department stores are getting more specific about their merchandising , and more deliberate about space and how their customers use their time to shop . In a study by Forrester on 2024 trends , principal analyst Audrey Chee-Read said consumers are going to be more cautious when it comes to spending . “ In 2024 , [ consumers ] won ’ t stop spending , but they will expect to maximize economic value . And this isn ’ t just a shift to shopping at value stores or looking for value brands , but an expectation of value through trials , special offers , bundles , payment plans and more .”
Cautious spending also demands smaller , more efficient merchandising layouts . Macy ’ s chief stores officer Marc Mastronardi outlined the retailer ’ s plan for smallerformat stores during its Q3 earnings call in November ( prior to the acquisition offer ) and said , “ As a growth vector for Macy ’ s , Inc ., small-format stores offer a curated shopping experience celebrating discovery and convenience . These stores optimize our physical store footprint and bring us closer to existing and desired customers while encouraging more frequent visits .”
Department stores like Dillard ’ s , Saks Fifth Avenue , and Bloomingdales are also creating merchandising spaces within their flagship and anchor locations , in an attempt to keep the customer shopping offline . Retail executives got the memo post-pandemic that loyal customers are tired , stretched thin and didn ’ t want to spend more than a couple minutes to ‘ search and discover ’ new items . Smaller formats allow customers to experience new brands and products while staying in the same retail space . The result : revenues increased by four to eight percent for these retailers in the last quarter .
“ The pop-up ‘ store within a store ’ is designed for brand awareness , customer engagement , and sales ,” said Susan ►
( Above ) The French retailer lifted its revenue by around 30 percent year on year in the 12 months to March 31 , 2023 .
( Below ) Printemps specializes in high-end fashion , lifestyle and beauty products .
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