Challenges in Retail

Over the past decade I have noticed that the apparel retail industry is facing turmoil. I say this because overall our economy is experiencing a recession and money is tight for the average shopper. After working at Macy’s for five years, I have observed a decrease in brand names such as Calvin Klein, and DKNY. Macy’s, like other large department stores, have “coupon specials” almost every weekend, brands such as Calvin Klein and DKNY are excluded from coupon use which accounts for part of why they is a decrease in their names . Private labels such as Charter Club have risen in sales at Macy’s because people believe they are saving more by using a shopping pass. These shopping-pass-coupons are sadly the only way department stores are keeping their head above water (barely may I add). Another challenge that department stores are facing is reestablishing a market. When one thinks about a department store, an image of an old lady being waited on hand and foot usually comes to mind. I know when Hecht’s turned in Macy’s, we had problems distinguishing the difference between Hecht’s (target customers were usually older) and Macy’s (a more hip younger market). It is hard to separate these old ideas of what department stores are now. I fear if the economy doesn’t improve, or a well established market is formed, the extinction of department stores will become a reality. That will be a sad day for me; where else can you buy cosmetics, shoes, clothing and accessories in one store?
On the flip side, discount retailers such as Wal-Mart and Target are experiencing an increase in apparel sales. I remember in the late 90’s, store brands such as The Gap and Abercrombie and Fitch were booming in sales. It may be the fact that I am getting older, thus growing out of the teenage target market, but I have observed a decline in these store brands because people believe they can get these clothes cheaper at off-price retailers such as T.J.Maxx and Marshall’s. Hopefully these challenges will be addressed soon, because I believe that this will put a damper on the fashion world as a whole. Who wants to get their outfits and their groceries at the same time at the Super Wal-Mart? Not me.