With Christmas on the horizon, the festive lights are being hung for another year and department stores all over the world are approaching what they hope is their busiest time.

In recent years, advances in technology and e-commerce alongside changing consumer habits have meant that department stores have had to place innovation and customer experience at the heart of their strategies to ensure survival.

Leading US brand Nordstrom is one example of how to stay ahead of the crowd while simultaneously creating intrigue and excitement. Its two-phase entry into New York City has been dubbed ‘like shopping online-only in real life’ by GQ Magazine, thanks to its nimble and savvy approach to modern-day shopping. The two separate spaces, which are respectively men’s and women’s-only (the latter will not open until late 2019), immediately make a statement loud and clear: 'we are setting ourselves apart from anything that already exists'.

By creating spaces that mix together everyday and designer brands, Nordstrom has identified the fact that, in reality, none of us dresses head-to-toe in Prada and instead like to pick and mix products from different price ranges. Coupled with the store’s endless list of innovative practices – think 24-hour pick-up for items ordered online and super-fast returns – it’s clear that Nordstrom has taken its physical (as well as digital) evolution incredibly seriously.

Moving to the other side of the world, Alibaba, which is the majority stakeholder in Chinese department store brand, Intime, is also employing digital strategies, technology and data to transform retail, offline as well as online. Intime, which has 62 stores in 33 cities in China, leads the charge among bricks-and-mortar operators in what’s being called ‘New Retail’ – Alibaba’s phrase which champions e-commerce as the undercurrent to everything the company does.

Initiatives have included being the first department store to use ‘Alipay’, Alibaba's third-party mobile and online payment platform, and creating an Intime app (Miaojie) which gives the customer an in-store experience in a mobile format, keeping them connected to the physical store at all times. 

For Intime, and many other department store chains, what remains the biggest challenge – and opportunity – is configuring the right mix of offline and online space to appeal to audiences of all ages  and demographics. They are having to move away from being a traditional bricks-and-mortar operator to a technology-driven innovator. 

Closer to home, it’s clear UK department stores are also successfully investing time and capital to stay ahead of the game. Most recently, Harrods has announced further retail expansion at its existing store in Knightsbridge and, Selfridges on West Oxford Street is undergoing a £300 million phased refurbishment.

With international tourist arrivals in London expected to hit 26.3 million by 2030, according to UNWTO, it’s evident that London department stores need to continue building on existing success to keep up with international competition.  

Further information

Read more: Consumer engagement is moving beyond stores for retail brands