Department store

A department store is a large retail outlet that is separated into different areas according to the type of product sold. Department stores sell a large array of items, including clothing, housewares, electronics, appliances, jewelry, and toys. Some examples of popular department stores include Dillard's, Sears, Macy's, and JCPenney. The concept of the department store was developed to allow consumers to find everything they needed in one store. Many of these stores included other services such as restaurants, gift wrapping, home delivery, and even credit lines. While department stores were very popular in the nineteenth and twentieth centuries, many have closed in the twenty-first century due to several factors, including the economic recession of the late 2000s, the emergence of discount retailers, and the prominence of online shopping.

History

The first department store, Harding Howell and Company's Grand Fashionable Magazine, debuted in 1786 in London, England. The store had four departments: furs and fans, haberdashery (men's clothing or sewing items to make clothing), jewelry and clocks, and millinery, or hats. Department stores did not become popular in other parts of the world until the mid-nineteenth century. The Industrial Revolution and the growing middle class fueled the rise of the department store.

One of the first US department stores, Marshall Field & Company, also known as Marshall Field's, originated in 1852 in Chicago, Illinois. The store adopted the catchphrases "only [so many] shopping days until Christmas" and "the customer is always right." It was a conservative store and sold high-end merchandise. Harry Gordon Selfridge, who had worked at Marshall Field's for several years, left Chicago to bring a high-end department store named Selfridges to London in 1909. He made the department store a destination complete with restaurants, a tearoom, a garden, waiting areas, writing spaces, and employees ready to help shoppers as needed. It became a prominent place for ladies to lunch and for people to meet.

Other department stores throughout the world copied this format, making the department store a one-stop shopping destination. New York City became synonymous with department stores in the mid- to late nineteenth century. A small dry goods store on 14th Street and 6th Avenue in New York City became Macy's in 1858. Rowland Hussey Macy launched R.H. Macy & Co., and he adorned the store with a red star, which remained Macy's logo into the twenty-first century. In 1902, the store had outgrown its space and moved to Herald Square on 34th Street and Broadway. It expanded in 1924 at this location to become the world's largest store with more than 1.1 million square feet by 2016.

Macy's was an innovative company, and the store changed the retail industry. It was the first to institute the one-price system, in which an item was sold at the same price to every customer. It advertised its prices in newspapers. It was the first retail business to promote a woman to an executive position. Margaret Getchell, who started as a cashier, worked her way through the ranks to become a leader at the company. She developed many ideas still used in the twenty-first century, including using window displays to lure customers into the store.

By this time, numerous other department stores had established themselves throughout New York, including Barneys New York, which originally sold discount men's suits; Saks Fifth Avenue, which became known for its window displays—especially around the holidays; Lord & Taylor, considered one of the first luxury stores; and Bloomingdale's, which sold high-end clothing and was known for its black-and-white checkered floor.

Overview

The successes of Marshall Field's, Macy's, and other popular department stores paved the way for these types of stores to pop up all over the United States—not just in the big cities. Small scales of these stores along with other department stores such as JCPenney and Sears became anchors (main tenants) in the numerous malls that were built in the twentieth and twenty-first centuries.

These stores adopted a new design made famous by Raymond Loewy. Instead of having merchandise behind glass, stores had items out on the floor, where customers could see and touch them. He also designed the stores so people had to walk through them in a certain way to pass by displayed merchandise. Loewy even changed the lighting to make the stores brighter and introduced escalators, which allowed consumers to see the entire store as they rode up the different levels.

Smaller stores surrounded the anchor stores in enclosed indoor malls. Many malls also contained grocery stores, liquor stores, pharmacies, and bakeries as well as food courts, arcades, and play places for children. Malls became one-stop shopping destinations. They were very popular with shoppers, who could roam from store to store and interact with others. Shopping became a source of pleasure and entertainment, not just a chore; people could spend an entire day at the mall.

However, as the twentieth century ended, people were leading busier lives and did not have as much time to spend at malls. They wanted convenience. A new type of store called a supercenter was developed. In 1988, the discount supercenter Walmart opened. In addition to offering lower prices than department stores, it featured multiple departments and other services such as a grocery store and car repair shop. Supercenter versions of other discount retailers such as Target and Kmart emerged, and these competed with the aging department stores. People no longer had to spend the entire day shopping and could now get items for lower prices.

Toward the end of the twentieth century, the Internet spawned online shopping sites such as Amazon and eBay. These gave consumers the ability to shop without having to leave their homes. These sites offered everything consumers could find in brick-and-mortar stores, and they enabled consumers to compare prices and items easily on different sites. To compete, some department stores such as Sears, Macy's, and JCPenney launched online versions of their stores.

Department stores have adapted to online shopping competition by adopting omnichannel strategies, enhancing in-store experiences, and leveraging technology. They integrated online and physical shopping, offered Buy Online Pick Up In-Store (BOPIS), and used digital displays and interactive kiosks. Personalized services, experiential retail, and curated product selections helped attract customers. Price matching and improved e-commerce platforms kept them competitive, while data analytics informed marketing strategies. These adaptations enhanced customer engagement, improved convenience, and fostered brand loyalty by offering unique shopping experiences that online retailers cannot fully replicate.

The economic recession of the late 2000s further changed shopping habits. With less money to spend, consumers had to comparison shop to find the best deals on merchandise. Customers once loyal to specific department stores such as Macy's shopped at less expensive discount retailers such as Target and Walmart. They also turned to online shopping, which provided the ability to comparison shop for the best prices.

During the COVID-19 pandemic, department stores stayed competitive by adopting innovative strategies to maintain sales and customer trust. They expanded curbside pickup, allowing safe and convenient shopping. Extended return windows gave customers flexibility and encouraged them to make purchases. Virtual try-on technology enabled shoppers to test products from home and reduced the need for in-store visits. These adaptations helped department stores navigate lockdowns while positioning them for long-term success. The pandemic highlighted the importance of adaptability, customer-centric policies, and technological integration in ensuring survival and future growth in an evolving retail landscape.

Bibliography

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