What: GDR questions the future of department stores and finds 3 examples to imagine what they could look like in the future.

Why it is important: Being a destination is key to making sure that department stores create, manage and inspire customer communities, or, in other words, audiences. Much more than the products they sell, these communities will be the future of department stores’ business models.

Department stores are facing a challenging future due to rising inflation, increased online shopping, and closures forecasted by UBS analysts. To thrive, they must create innovative experiences that inspire customers to visit in person.

For GDR, the next evolution of department stores will position them as venues for brand storytelling and not just retail locations. Three disruptors have been identified, Wow Concept Madrid, Neighborhood Goods, and K11 Musea, which according to GDR are leading the way in implementing four key themes: curation, culture, community, and connectivity:

-    Wow Concept Madrid offers a theatrical and immersive experience with digital integration and rotating visiting brands.

-    Neighborhood Goods introduces new brands weekly and focuses on community building through live events and local restaurants.

-    K11 Musea combines culture and commerce with large cultural events, exhibitions, and educational experiences.

A look at 3 disrupting department stores