What: The decline of large multi-brand retailers is driving a resurgence of specialty boutiques and curated department stores focused on customer service and experiential retail, such as Bloomingdale’s.

Why it is important: The resurgence of specialty boutiques and curated department stores highlights the industry’s move toward more personalised, community-driven retail, echoing trends seen in recent market analyses.

The luxury retail landscape is undergoing a profound transformation as major multi-brand retailers face mounting challenges, including reduced wholesale exposure from top luxury brands, financial instability, and shifting consumer preferences. High-profile bankruptcies and restructurings, such as those of Ssense, MatchesFashion, and LuisaViaRoma, have underscored the vulnerability of scale-driven models that prioritise traffic over unique experiences. In contrast, independent boutiques and select department stores are thriving by doubling down on tight curation, exceptional customer service, and community engagement. These retailers are agile, frequently refreshing their offerings and creating intimate environments that foster discovery and loyalty. Department stores like Bloomingdale’s are investing in renovations, staff training, and brand partnerships, while successful e-tailers and boutiques leverage technology to enhance product discovery and personalize the shopping journey. As the industry pivots away from mass-market approaches, the balance between efficiency and serendipity is proving essential, with the most resilient players focusing on experiential retail and authentic connections to their clientele.

IADS Notes:

Throughout March, April, May, and July 2025, industry reports have documented the retreat of department stores from historic downtown locations, the resilience of specialty retailers in markets like Japan, and the strategic reinvention of department stores through experiential retail and curated offerings. The closure of LVMH’s 24S and the restructuring of LuisaViaRoma reflect luxury brands’ shift toward direct channels, while Liberty London’s success with emerging brands and Bloomingdale’s investments in customer experience exemplify how curation and service are driving the sector’s renewal.

Multi-brand retail: Independent boutiques are making a comeback