What: A very synthetic view on where US department stores stand in their actions to modernize and woo shoppers back.

Why it is important: Off-price, promotions and essentials are presented as a new recipe, but it might not be sufficient to provide the needed solutions to US department stores.

The article from Modern Retail discusses the challenges faced by department stores and their strategies to win back customers. Department stores have had a tough time during the pandemic, with declining sales and reduced foot traffic. Many consumers have shifted their shopping habits online, contributing to the challenges department stores face in attracting customers back to physical locations.

To attract customers, department stores are focusing on several strategies. Macy’s is investing heavily in its loyalty program and focusing on categories such as home, beauty, fine jewelry, and watches. It's also planning to launch a small-format off-mall store, Macy's Backstage, later this year.

Kohl’s is expanding into "underrepresented" categories like gifting, decor, pet, and outdoor, and it plans to place more gift items towards the front of the store in the coming months. The article mentions that Kohl’s is particularly good at selling "hardcore essentials" like underwear, which is less economically sensitive than other categories.

However, even with these strategies, it's unclear whether these department stores will be able to fully recover their pre-pandemic customer traffic. The article suggests that the best long-term strategy for these retailers might be to focus on their core business, as consumers' attitudes towards certain categories like apparel have shifted.

How US department stores are getting shoppers back