The Death of the Department Store: 'Very Few Are Likely to Survive'

[Demovictory9]

https://www.sfgate.com/business/article/The-Death-of-the-Department-Store-Very-Few-Are-15216093.php

Across chains, prices for new merchandise sold via e-commerce have already been slashed by 40% in some cases. Order cancellations for the pre-fall season — which would normally have started delivering next month — have been increasing. Some brands said shipments have even been turned away upon delivery to warehouses, and extension of payment terms are cascading through vendors, who are then forced to negotiate with their own manufacturers, marketing agencies, fulfillment centers and landlords.

“I’ve had a showroom for over 30 years, and we have always used the word ‘partnership,’ when talking about our relationship with the department stores,” said Betsee Isenberg, of the showroom 10Eleven, which represents numerous brands such as Vince and ATM. “Through 9/11, through 2008, we worked hand-in-hand with our retailers. This is the first time the onus has been on the brands — many of which are losing millions and millions of dollars because of the canceled orders. It is just not fair that it is survival of the fittest.” In a new report, McKinsey refers to the situation as “wholesale Darwinism.”

The resort season has been canceled entirely, and fall orders have been put on hold, raising questions about what inventory will be left if and when shops reopen and consumers return to stores.

“Nobody knows what Q4 will be like, but you have to start putting the orders in now,” Sucharita Kodali, a retail analyst at Forrester, said, speaking of the holiday season, normally the most lucrative time of the year for the chains. “Some people don’t even have the money to put in Q4 orders, and may have to cancel Q4 orders anyway, and it’s a mess. There’s never been this much uncertainty.”

[Stallion]

1. High-End Nordstroms, Blomingdale, Saks and Neimans Especially With Unsually Deep Discounts

I mean 60-70% off in many cases for their high end brand names. I noticed it before this article

Suits, sports coats and dress slacks are especially deeply discounted as few are wearing dress clothes

[Demovictory9]

3. I just received my order from jcpenney online. sale prices are great, dont have past

numbers to compare though

[ret5hd]

2. If you accept the hard data, there is actually very little uncertainty.

It is late 1929, early 1930. The party is over. Uncertainty (in this instance) is just another name for fear.

Please, may the adults once again be in charge?

[Demovictory9]

4. i feel nostalgic for department store already

[Bluepinky]

6. Me too. I still miss Zayre's, Bradley's and Ames Dept Stores.

All of which closed down in 90’s.

[Demovictory9]

9. youtube is the keeper of all history

[Bluepinky]

11. Wow, those commercials are corny (but cute).

That was fun, thanks for posting!

[gristy]

7. I love my Macy's and JC Penny

It will be a sad day if they go under...

[Demovictory9]

10. yep

[napi21]

5. Deparyment stores have been on the edge of the cliff for a few years now & it keeps getting

worse. The people with enough money are going to Saks & other high end retailers & the avg. shopper, who used to shop the Dept. stores are now going to Target, and individua; stores like The Gap, Ross, Marshals, etc. Then of course there's the internet where the options are unlimited! I'm not sure just how many retailers are going to survive this long time closed. When they're closed there's NO INCOME, but there's still rent, utilities, payments on current inventory etc.

[mopinko]

8. this is gonna give internet commerce rocket fuel.

i have been watching commercials as this unfolded to see who was nimble enough to catch the wave w/o being complete assholes about it.
imho, wayfair deserves to die a horrible death. most of the e-commerce i have done comes w red letter announcements about how this is hitting them, but wayfair is going full bore suck up the panic. hopefully they will have to pay the actual cost on that.
otoh, i bought stock in michael's

[kskiska]

12. If Macy's goes under

is that the end of the Macy's Thanksgiving Day Parade?

[Demovictory9]

13. good question