What: Forbes reviews the most recent initiatives led by US department stores to attract a younger crows.

Why it is important: there is no silver bullet: a nice price offer, and great curation and selection, and a compelling experience. This is not only happening in the US.

Department stores like Macy’s and Kohl’s, traditionally popular with older demographics, face challenges in attracting younger generations such as millennials and Gen Z, who represent a significant portion of the market. Despite making up about 40% of their customer base, the older demographics are not enough to sustain growth as only 6% of Gen Z shop at these stores. The decline in customer spending in recent years has exacerbated the problem, with Macy’s and Nordstrom reporting sales drops and operational cuts, such as Nordstrom halting Canadian operations.

Efforts to adapt include reviewing store formats and brand offerings to appeal more to younger shoppers. For example, Kohl’s has partnered with Sephora to introduce shop-in-shops, aiming to leverage Sephora's appeal among younger demographics to increase foot traffic and sales. Nordstrom has expanded its more budget-friendly Nordstrom Rack stores, and Macy’s is focusing on diversifying its offerings and enhancing customer experiences with new brands, personalized services, and unique in-store events.

Department stores need to cater to both young and old by creating engaging, unique shopping experiences and competing with online retailers. Without significant reinvention, department stores risk falling further behind as e-commerce and experiential retail continue to draw the younger demographics that are crucial for future growth.

How Department Stores Are Targeting Younger Customers For Survival