reformatted

Department stores reformatted

Retailers are rethinking the traditional department store model.

The latest department stores are more town squares than retailers, reflecting a shift in the retail landscape from big-box luxury to community microcosm.

Beales, which closed all of its UK stores in 2020, has reopened three locations under new ownership—and is looking beyond retail. The top floors of the Poole branch will be turned into a “health village” run by the National Health Service, with dermatology, orthopedics, ophthalmology, and breast cancer screening departments, as well as counselling rooms for those suffering from long COVID.

A new concept department store is reinventing a location formerly occupied by legacy British retailer Debenhams. Called Bobby’s, the new store opened in the UK town of Bournemouth in September 2021 and houses a beauty hall, an art gallery and ice-cream and coffee parlor, alongside shopping and local artisans, in place of floors filled with clothing, accessories and homeware. Future plans include a hairdressing salon, dental services, a microbrewery, and even a smokery.

“I don’t ever see a big department store chain emerging again,” Beales’ CEO Tony Brown told the Guardian. “We will see small local chains popping up with eight or 10 stores. The model will change dramatically over the next couple of years. People want something more localized.”

Why it’s interesting It’s clear that the traditional department store format is no longer working. We reported the death of the luxury department store in “The Future 100: 2020,” following a string of closures and bankruptcies among big, long-established names. Now, the next generation of department stores are having to rethink and adapt.