What: A contribution reflecting on the stores’ transformation, with a customer-first approach.

Why it is important: Store as a hub are models followed by Target, Walmart and Nordstrom already. Some of their key learnings could be interesting for other department stores.

The contributor attributes Target’s recent growth to the fact that it pivoted to a store as a hub model, leading to a +21% growth YoY on Q3 2020, spread evenly between digital and physical stores. This model turns out to be profitable, as 75% of digital orders are fulfilled from stores and 2/3 of customers come to collect them. Other examples are Best Buy (kerbside pickup allowed to retain 81% of previous year’s sales in spite of the fact that all stores were closed this year), or Williams Sonoma.

Why Retail Key To Survival May Be A Hub Model Where The Consumer Is The Pilot