I have a deep love for the fourth floor of John Lewis’s Oxford Street flagship. The homespun wizardry of the haberdashery department bewitches me like a grownup’s Diagon Alley. And when my children were little, I found the no-nonsense advice and cheery colours of the nursery department profoundly comforting. But even those of us who love department stores have to admit that it is, at this point, a sepia-tinted and nostalgic kind of affection.
The decline of the department store is in direct proportion to the rise of the brand. The allegiance of the modern shopper is to their favourite brand – with which they may have a “relationship” on Instagram or via pop-up shops – not to a permanent physical space.
Department stores were once proud of their independence in selling 40 brands of soap and 12 styles of notebook. But this stout even-handedness is in danger of making them appear less glamorous than branded boutiques.
It is not a coincidence that the department stores hardest hit are those that have little identity as a brand. (Can anyone define what House of Fraser stands for?) John Lewis, with its emotive Christmas adverts, has worked hard to buck the trend by amplifying its personality, while Selfridges has redefined itself as experience over retail.
Department store shopping is by its nature time-inefficient and requires human contact. When you think you have found the escalator it usually turns out to be the wrong one. You will need to ask directions, and make purchases on multiple floors.
Retailers that have gone bust 2017-18
Toys R Us: 180 stores employing 3,000 staff, collapsed 28 February. Owes £15m in VAT, due by 1 March.
Maplin: 200 electronics and gadget stores, founded 1972, also failed on 28 February.
Warren Evans: bedmaker went into administration earlier in February.
East: fashion brand with nearly 50 outlets folded in January.
Juice Corp: business behind brands including Elizabeth Emanuel and Joe Bloggs went under in January.
Multiyork: furniture chain with 50 stores went into administration in November.
Feather & Black: bedroom furniture and bedding specialist with 25 outlets fell into administration in November.
Retailers under pressure
New Look has debts of more than £1bn and has lost some of its credit insurance cover, which protects suppliers if a retailer goes bust. In the 10 months to Christmas, sales fell 11% and losses hit £123m. The company intends to close 60 stores and change its fashion ranges, but faces a struggle to win back young shoppers.
House of Fraser's Chinese owner, Sanpower, had to stump up £25m to see the store through Christmas and its debt is rated as junk. The retailer is attempting to reduce the size of its stores by 30% and has asked landlords to cut rents.
Debenhams, a 178-store chain that is more than 200 years old, is axing one in four of its managers and considering closures to cut costs. It has warned that profits have been hit by lower than expected sales, with profit margins also down as a result of having to cut prices to match rivals.
This is all at odds with the modern consumer’s instinct for speed and individualism, enabled by technology. The same technological forces that did for the landline are lined up against the department store.
In order to tempt the modern consumer to get off their phone and into the store, the most forward-thinking department stores are turning retail into modern entertainment. Selfridges stages ambitious multisensory art exhibitions, John Lewis incorporates pop-up rooftop restaurants, while Liberty hosts a sewing school. And Harrods’ new toy department features light tunnels and fancy-dress fitting rooms, while Harvey Nichols runs cocktail masterclasses.
