What: American department stores are striving to save themselves by refining internal and consumer-facing strategies.

Why it is important: The department stores in the US need to adapt their business models to remain relevant and innovate over time.

Department stores are considering integrating physical and digital teams (like Neiman Marcus) or separating them entirely (like Saks). Personalisation is a key focus, with stores tailoring all channels to specific consumers to provide a personalized shopping experience.

The current US wholesale system has challenges due to high inventories, discounting, and competition from e-commerce players. The main hurdle faced by department stores is "social and commercial irrelevance" in a post-internet world, according to Doug Stephens, founder of consultancy Retail Prophet.

Department stores are rethinking team structures to improve efficiency, with Neiman Marcus adopting an integrated model and Saks opting for a complete split between offline and online businesses. Buying strategies need to strike a balance between tried-and-true products and newness and innovation to drive customer frequency and repeat visits. Bloomingdale's is focusing on new brands and products to compete with alternative entertainment and travel options. "Advanced contemporary" clothing is performing well, with brands like Veronica Beard, Farm Rio, and Self-Portrait gaining popularity. Buyers are also focusing on tried-and-true products to manage inventories and mitigate risks.

Can American department stores save themselves?