What: A critical piece on why department stores are digging their own grave.

Why it is important: E-commerce is not responsible for department stores’ woes. Lack of strong, decisive actions is.

Many department stores, particularly in the U.S., claim they are undergoing transformations, but results suggest they are struggling to make real progress. Mid-tier retailers like Macy's and JC Penney have made efforts but haven't seen significant growth, while upscale stores like Nordstrom and Neiman Marcus are in a similar boat.

Despite the perception that e-commerce giants like Amazon are the primary cause, department stores' decline has spanned over two decades and their challenges stem largely from two main shifts.

First, retail is experiencing a division where consumers either opt for high-quality experiences or cost-effective options, making it difficult for traditional department stores to find their niche.

Second, the definition of shopping convenience has changed; malls are no longer the primary convenient shopping locations.

Despite these clear trends, most department store strategies have been slow, incremental changes to an outdated model. Bold, decisive actions and a culture of experimentation are required, but given the time that has already passed, one can only speculate where these brands could have been if they had fully embraced change earlier.

Retail escalating commitment to a failing course of action