The culture of the departmental stores is diminishing, they are converting themse
The culture of the departmental stores is diminishing, they are converting themselves into decorated storage houses where an individual can come and save money on bulk purchases. Practicing an economy of the scale was the fundamental mantra behind the success of the departmental stores in the past. After the onslaught of online retail stores, they are still following the same mantra. Though there is only one difference, this time they are sharing profit margins with the customers more generously and this way they are keeping them hooked.
Rise, fall, recession and consolidation, they have already seen all the four seasons of a vendor during last fifty years. In the past departmental stores changed the face of the market and now they are testing the same medicine with the arrival of internet base shopping stores. Most of the big departmental stores are consolidating their position by bringing in a change in their business models. They are trying to use their geographical presence as a bonus while catering to the orders in the same area. The concept of footfalls has found a way with clicks and traffics on the website. Many experts believe that departmental stores will manage to come out of the current crisis that they are facing.
Many online stores are now facing the heat of the competition. It can be considered as a boom in the market that can lead to a recession if small players with less fuel will withdraw themselves from the game after a point because they will not be able to compete with the big players. However, as an investor one has to keep an eye on the patterns of the retail. Departmental stores primarily scored because they succeed in cutting down the presence of the big chain that was working. In spite of all the uncertainties involved, departmental stores are here to stay because of the consumer habits where shopping is working as a weekend festival for them.