Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.
Sears, Kmart, JCPenney, and Lord & Taylor have all closed stores this year.
There are a few reasons department stores had such a difficult year. The rise of e-commerce has created a major obstacle for department stores, many of which have been around for more than 100 years. Stores are being forced to face up against giants like Amazon and Walmart, and many are coming up short in their e-commerce offerings.
As a result of more shoppers turning to online stores, there's also been a decline in foot traffic to malls. Many mall-based department stores have been hit hard from the decrease in shoppers.
Advertisement
A disappearing middle class has also taken a toll on many mid-tier department stores. Shoppers are either looking for luxury products or looking for off-price, budget options. As a result, department stores that don't fall into either of these categories are struggling to win over shoppers.
Kmart and Sears had a particularly difficult 2018. In October, the stores' parent company Sears Holdings filed for Chapter 11 bankruptcy protection.
We visited multiple Kmart and Sears stores throughout New York City this year. We visited some locations more than once. The stores were consistently messy.
The store we visited was in particularly bad shape because it was so near closing ...
... but parent company Hudson's Bay, which also owns Saks Fifth Avenue, said it expects to close up to 10 of its nearly 50 Lord & Taylor locations through 2019.
Nordstrom is doing better than its fellow department stores, reporting comparable sales were up 2.3% in the third quarter.
The store we visited in Westchester, New York, was in better shape than many of the other stores we visited. It was clean, well-organized, and had more shoppers than we saw at other stores.
But Macy's was the best department store we visited in 2018.
When we visited the store's New York flagship on 34th Street, it was busy with shoppers, had a ton to offer, and was spotlessly clean.
Though the brand started the year off by closing stores, it was able to start turning things around. Macy's reported comparable sales were up 3.1% in the third quarter, marking its fourth consecutive quarter of growth.
Macy's has been making some major changes to help it turn things around, especially when it comes to e-commerce.
The department store chain has been improving its mobile shopping platform, rolling out services such as mobile checkout, and even looking to bring augmented reality to its app to enable customers to virtually try on beauty products at home. Macy's is also testing pickup lockers similar to Amazon's in an expansion of its buy online, pickup in-store program.
In addition, it is shrinking its less-productive stores to help boost sales. The idea is that by having less merchandise to wade through, the smaller stores will have a more desirable shopping experience.