If you have been reading headlines about department stores in the US recently, it might seem all doom and gloom, thanks to the demise of former titans of the sector such as Saks and Neiman Marcus. One department store that has been bucking such trends, however, is Bloomingdale’s, which is led by its quick-thinking French CEO, Olivier Bron, formerly of Bain & Company, Galeries Lafayette and Bangkok’s Central Group. He has been tightening the ship – trading on the brand’s reputable name and rethinking exactly what a department store should provide. Comparative sales in the first quarter of this year were up 10.2 per cent, part of a steady stream of positive growth figures. Bron spoke with Monocle’s chairman, Tyler Brûlé, from Paris.

Listen to the full conversation here and read an extract of the interview, below.

Some people think that the department store is back; others that it’s gone for good. What’s your view?
It’s a mixed picture. But when I hear people saying that department stores are dinosaurs, that’s not true. The department stores that we used to run 30 or 40 years ago are gone forever but the challenge, as in every aspect of retail, is about reinvention. If you go back to the source of department stores, they are meant to be places of discovery, where you can experience the products and have a close connection with them. This is still very relevant for customers.

Why should people visit Bloomingdale’s?
We want to bring back the DNA of the Bloomingdale’s brand – something that’s very special. The US is the biggest market in the world, with the biggest department-store players. Yet none of the world’s best department stores are in the US right now – and that’s crazy, when you think about it. So what we want to do is reposition Bloomingdale’s in terms of international standards. We have to deliver the same kind of experience in the US as they do in Asia and Europe. So we have to rethink the way that we’re designing department stores in the US and that’s exactly what we’re doing at Bloomingdale’s. We’re positioning our model from premium contemporary to high luxury and we want to bring this storytelling from the brands cascading down to the customer.

Obviously, you have the beloved department store on Third Avenue in New York – but where’s your focus?
Every city is a different market with different needs. We’re not selling the same thing in the same way in all the different cities. So being able to adapt your assortment, service and experience in the store in these different cities is extremely important. Right now, we’re renovating our flagship in New York to differentiate it from anything else that you can experience in the US, which is a massive step because it’s a landmark for us. We’re triggering the renovation of 10 stores in the next five years to re-elevate this experience and bring the best to the customer.

What’s happening with malls in the US right now? Bloomingdale’s is often an anchor but there are also frequently lots of empty, boxy spaces.
That’s fair. But we have the privilege and chance with Bloomingdale’s to only be in prime malls that are doing well. Most of them have strong traction and strong traffic. It’s very important for us to pick our battles and where we want to operate – and to be very clear on our positioning and what our customers target. This is exactly what’s happening.

How big a role will food play in Bloomingdale’s moving forward?
If you’re obsessed about getting a yield out of every inch of the store then that’s a problem because, honestly, you’re not thinking about the experience. When you’re overwhelmed by so much density, products and solicitation, you don’t have any moment to pause, to sit, to eat, to drink. You’re missing something. The best way of thinking about the customer relationship is in the long term. It’s about having customers who just spend time in our store. If it’s only about dollars, products and transactions, that’s a short-term perspective. We must rethink the way that we’re designing our store and our space to address the current needs of our customers.

For the full interview and Tyler Brûlé’s conversations with more top business leaders, listen to ‘The Chiefs’.

The post ‘We have to rethink the way that we’re designing department stores.’ Olivier Bron on the future of Bloomingdale’s appeared first on Monocle.

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