From CNBC: 2024-05-20 13:35:36

Department stores like Macy’s, Kohl’s, and Nordstrom are facing challenges as sales slow and core customers age. Activist investors are pushing for changes, with Nordstrom considering going private and Macy’s exploring private ownership. The stores need to attract younger customers, as data shows a majority of shoppers are baby boomers, signaling an urgent need for transformation.

Kohl’s is aiming to attract younger shoppers by adding trendier clothing for teens, expanding its Sephora shops, and enhancing its baby department. CEO Tom Kingsbury acknowledges that relying on coupons isn’t enough for millennial and Gen Z shoppers who seek compelling merchandise and clear pricing. The retailer is focusing on key life stages like apartment decoration and new parenthood to drive sales.

Macy’s, under new CEO Tony Spring, is rebranding and closing stores to rejuvenate its business. It is opening smaller-format stores and focusing on locations with higher foot traffic and engaging customer experiences. Despite these efforts, Macy’s anticipates a decrease in net sales, highlighting the challenge of attracting younger customers who shop at a variety of retailers.

Nordstrom has been more successful with younger shoppers, offering popular brands and launching partnerships with direct-to-consumer companies. CEO Erik Nordstrom aims to improve the retailer’s appeal to young customers, highlighting a multiyear plan for growth. Nordstrom’s diverse merchandise and third-party marketplace approach are key strategies to engage a wider audience.



Read more at CNBC: Department stores want younger shoppers