What: A piece about why major US department stores are embracing tech to reduce the size of their stores.

Why it is important: Showrooming and smaller stores fleet might be the next step for department stores in the future.

The retail industry is shifting towards small format stores, as major department stores like Bloomingdales and Nordstrom open smaller locations to address revenue challenges.

These stores offer lower rents, fewer employees, and less inventory, resulting in lower overhead and higher profit margins.

However, to be successful, retailers must strategically curate their merchandise based on real-time customer behavior data. Understanding local audience preferences and offering the right products in the appropriate quantities is crucial for customer satisfaction and loyalty.

As customer behavior evolves, businesses should prioritize meeting individual customer needs to thrive in the changing retail landscape.

Department stores are getting smaller (and smarter)