For decades, department stores were symbols of American retail success, but their shine has long since faded. Overexpansion that began in the 1990s, the growth of e-commerce and the decline of many malls has left a saturated market, with more stores than there is demand. Major department stores have been struggling for decades to adapt to changes in the way their customers shop, with little to show for it.

"These challenges existed ten years ago, but the problem we have today is that it’s getting later and later, and more and more desperate for these department stores. Time is running out, and they still haven’t figured out the solution,” says retail editor Cat Chen.

In this episode of The Debrief, BoF senior correspondent Sheena Butler-Young speaks with Chen about why department stores are struggling to stay relevant, how activist investors are complicating the picture, and whether following the approach of European department stores like Selfridges can save this iconic segment of the retail industry.

Key Insights:

• Activist investors have been targeting department stores like Macy’s and Kohl’s, but they are more interested in these companies’ real estate portfolios than retail. Chen highlights the parallels with Sears, where the investor Eddie Lampert spun out Sears’ real estate into a separate entity, ultimately leading to its bankruptcy. “The sentiment in the industry is that if these companies were bought out by activist investors it would not be a good sign for the health of these department stores. There wouldn’t be a long-term strategy for maintaining their health,” she says.

• Nordstrom's strategy for revival includes focusing on experiential retail, enhancing customer service, and possibly going private under the Nordstrom family’s ownership. These moves would allow them to invest in the long-term health of the company without the pressure of quarterly earnings. “The Nordstrom family is really set on making some radical, transformative changes to Nordstrom that they just can't make as a public entity,” Chen explains.

• European department stores are a potential model for American department stores to replicate. “Look at Selfridges or look at Le Bon Marché. People love spending time in those stores — tourists but also locals,” Chen says. Explaining how European stores are treated like flagships, with significant investments in customer experience and meticulous attention to detail, she adds, “these companies invest in the layout of the store — fixtures, carpeting, lighting — all of these details matter, and European department stores have done a great job making it happen.”

Additional Resources:

• Why Nordstrom’s Founding Family Wants to Take the Retailer Private | BoF
• Innovation Won’t Save Department Stores. The Right Products Will. | BoF
• Can Saks, Neiman Marcus and Amazon Save the American Department Store? | BoF

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A style renaissance that changed how many men dress – mostly for the better – has congealed into a sea of sameness, at least in the eyes of a growing number of fashion critics and influencers. Too many interchangeable brands take the same approach, blending tailoring with casualwear in neutral-toned collections that are stylish but often fail to inspire. The look is often derided as a menswear “starter pack,” but remains popular with consumers.

This week on The Debrief, Brian Baskin sits down with correspondents Malique Morris and Lei Takanashi to discuss why this “starter pack” approach works for the industry - but at the cost of long-term brand building and customer loyalty. Additionally, they probe what brands must do to recapture consumers' imagination.

“Any brand can make a good product, but what makes a brand good, especially a good menswear brand, is having a great story that's worth telling,” says Takanashi.

Key Insights:

• Menswear brands today are following a familiar formula, leading to a prevalence of “starter pack” lookbooks. “They all do some sort of version of this. Approachability, timeless, stylish and handsome but inoffensive look,” says Morris. This marketing playbook, popularised by brands like Aimé Leon Dore and followed by many others, has led to a lack of creativity and experimentation. As Morris puts it, “everything is good and nothing is great. So if everyone can dress well, then no one is actually cool.”

• What makes brands stand out over decades isn’t radical changes in design, but compelling storytelling and mythmaking. Morris argues consumers may not be loyal to today’s menswear brands in the long term if they're just buying into a trendy and easy to copy aesthetic.

• But Takanashi notes that for certain brands that are seen as authentically embracing this style, their best bet is stick to what’s worked: “I feel like in the case of brands like Aimé Leon Dore and Supreme, the long game for them is becoming a heritage label … they have such a distinct point of view that they will always have a core consumer.” As Morris puts it, “what brands should think about is just being themselves.”

Additional resources:

• Why Menswear Is Getting a Marketing Refresh | BoF
• Can Off-White Get Back on Track? | BoF
• How the Streetwear Customer Is Evolving | BoF

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Luxury fashion remains an exclusive club, where leadership positions are often filled from within tight, familiar circles. Despite industry-wide commitments to diversity and inclusion, the sector continues to struggle with gender and racial diversity in its top creative roles. Many luxury companies still operate within networks that favour traditional backgrounds, making it difficult for new, diverse talent to break through.

“It's a role where I think people's unconscious biases really can come into play because whether or not they receive something as good design or bad design is going to be so much influenced by the person who told them that it's good design or bad design,” said BoF’s Luxury Editor Robert Williams.

This week on The Debrief, BoF Senior Correspondent Sheena Butler-Young sat down with Williams to discuss the structural barriers that keep women and minorities from ascending to these coveted positions. They explore how the industry’s patriarchal business models perpetuate these challenges, the influence of consumer expectations in driving change, and how mass brands like Uniqlo are beginning to shift the narrative by appointing creative directors from unconventional backgrounds.

Key Insights:

• The role of the creative director in luxury fashion has traditionally been defined by a singular, authoritative voice that dictates trends and tastes, often imposing what is considered "right" or "wrong" in design. Williams explains that this model, which elevates the creative director as a gatekeeper of style, makes it challenging for those who don't fit the traditional mould of authority in fashion to rise to the top.“The creative director defined in a very traditional sense … is so much about imposing this authority from the top. And while that's not how everyone operates a brand anymore, … when you have that tradition, that makes it harder for people who don't fit the bill of what someone is used to seeing as a person of authority and in power to rise up.”

• Women in creative leadership face unique challenges, needing to prove their creative vision with commercial success. Williams explains, “Women have had to maybe back up their creative contributions with commercial results. And I think when you look at the women at the top of the luxury industry, you have a group of women who really know how to say something on the runway and say something with the brand. But then also really to back that up with products that women will want to buy and wear.” This dual expectation places added pressure on women creative directors, which may not be applied to their male counterparts.

• Luxury fashion remains a highly insular industry, where hiring and promotion often occur within exclusive networks that favour familiar faces and traditional backgrounds. “Many luxury companies still operate within a very exclusive network, which makes it difficult for new, diverse talent to break in,” Williams notes. “It's a very contacts and relationship driven industry, and so reinforcing diversity is quite tricky. If the people in positions of power don't have a really diverse group around them, it's going to be less and less likely that they're going to find out about an interesting talent, someone that they want to kind of cut into the action in terms of their studio.”

Additional Resources:

• Luxury Fashion’s Designer Diversity Problem Persists | BoF
• Do Mass Brands Need Creative Directors? | BoF

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