What: A reflection on the potential competitive advantages of the new Bloomie’s format launched by Bloomingdale’s and how it could complete, not compete with, the larger department store format.

Why it is important: The US market is known for having a high department store footprint, which might be disconnected for the actual needs of the market. This is why department stores have searched for a long time a new formula to reinvent themselves. Bloomie’s is the latest venture of one of the major players on the market.

Launching a new, smaller retail concept is not something new for US department stores, which have been searching for a new winning formula for quite some years. However, so far, the initiatives were not that successful: Neiman Marcus launched in 2006 a new model, Cusp (smaller boutiques with a lower price contemporary approach), but, instead of opening 70 stores, Cusp became a shop-in-shop concept within Neiman Marcus stores. Nordstrom launched Nordstrom Local, however, they are more successful for being services super hubs more than points of sales.

Things may change with Bloomie’s, launched by Bloomingdale’s, which are expected to be about one-tenth of the typical Bloomingdale’s size with, according to the article, several interesting competitive advantages:

• The smaller format makes it more scalable, and can integrate smaller neighbourhoods, reinvigorating a certain sense of intimacy with local customers,
• The selection will be tailor-made to the local community, with an adaptable floor plan according to the best categories for local customers,
• Bloomie’s will also make sure that many services are available: stylists, BOPI and an easy returns option, customisation and alteration services, all supported by a tech platform allowing the sales staff and customers to access the whole Bloomingdale’s offer.

Analysts see this new venture as a way to keep alive the multibrand retail, in a market which is considered as overcrowded with department stores.

Bloomingdale’s Finds A Scalable New Model In Bloomie’s