Department stores are implementing different strategies to drive sales during the holiday season as consumers are expected to continue the gift-giving tradition.
Upbeat Vibe In Luxury Segment
Luxury spending, like many other segments in the fashion industry, saw a bleak year of sales as a result of the pandemic - but the atmosphere has been upbeat over the past few weeks.
Department stores are relying on luxury spenders - particularly "self-purchasing" consumers who are fed up with the crises that 2020 brought.
Chief executive and president of Saks, Marc Metrick, said the company expected more people to treat themselves during the holidays - luxury fashion is the "comfort food of products."
Metrick said jewelry is expected to be "big" during the holidays.
E-Commerce Boom
Neiman Marcus filed for bankruptcy protection in May but emerged in September and is ready to capitalize on the expected rise of e-commerce in beauty and fashion.
Its vice president and divisional merchandise manager for beauty, Michelle Gill, said the department store company had been improving its online sales system.
In November, the company launched an online gift service where customers can get recommendations for the best gifts.
While the road ahead for Neiman Marcus and other department stores will be long improved digital selling tools are expected to help.
Improved Internet Presence
Online selling found its way to the heart of department stores when lockdowns were ordered and people were forced to stay at home.
Some department stores have failed to take advantage, however. Others, like Nordstrom, realized that combining traditional sales tools with innovative solutions are crucial to surviving 2020.
The luxury department store chain's third quarter 2020 earnings report said digital sales made up 54% of all sales during the quarter - thanks to the company's increased spending on digital selling.
Early promotions helped up the ante for shoppers anxious about going out to shop for holiday gifts. Nordstrom launched its Holiday 2020 website mid-October.
It is expected that while in-store shopping will remain bleak digital sales will see significant increases and consumers will continue to celebrate the gift-giving season.
