Digital to the rescue of department stores
Department stores, which are particularly exposed to the crisis, deployed unprecedented digital initiatives last year. Meeting with Selvane du Ménil, C.E.O. of the International Association of Department Stores.
Selvane Mohandas du Menil, General Manager of International Association of Department Stores, was previously a member of the Executive Committee at Sonia Rykiel.
G.R.N.: Please introduce the scope of I.A.D.S.
Selvane du Ménil: I.A.D.S. is a think-tank serving department stores’ management. We bring together 12 global department store giants, including Galeries Lafayette, Manor in Switzerland, El Corte Inglés in Spain, Breuninger in Germany, Falabella in Chile and SM in the Philippines. The combined annual turnover of our members exceeds €31 billion via 490 department stores and 233,000 staff. Our mission is to promote co-operation and identify increased efficiency by sharing best practices, key market insights and through dedicated workshops (category management, private labels). As retailers are often family-owned, they are not subject to the same constraints as those owned by investors or by pension funds.
After having targeted Chinese tour operators, department stores now need to talk to local customers. It’s a 180° turn…
For certain brands, this is very true, particularly in France, Spain and Denmark. There is a real need to refocus the message and attract more local customers again. However, who are these customers, what can we sell and how can we sell in the absence of tourists? It is necessary to regain our voice and brand credibility by direct contact with new local customers. The German Breuninger is particularly advanced in this field. In 2020, the store sold directly to local customers via WhatsApp and Facetime. Those who understand the German market know how difficult it is to penetrate their private social networks. Some clients were offered products to try at home. Following important local tradition, Breuninger delivered 200 Easter rabbits to the best customers. Nicolas Houzé (owner of Galeries Lafayette) also created a similar direct customer relationship in 2020 by sending emails directly to customers. The first action of the new Printemps boss was to send email to customers. This was something Paolo de Cesare never did.
The fashion, beauty and luxury categories are also highly exposed…
In Western Europe, women’s fashion sales plummeted in 2020. In women’s fashion, those with a fall of 30% are happy. For make-up, we lost 20%. The home (decoration, small equipment, electronic products, sports equipment) drives sales. All this has multiple consequences for store layout, purchase planning and marketing. To date, there has not been drastic re-shuffling in favour of one category or another, but we are seeing some interesting initiatives. In Spain, El Corte Inglés launched in September 2020 the ‘Decor Studio’. This is an interior design service. Clients talk directly to craftsmen and decorators who help think about the layout of a home in a global way. Selling just lamps and cushions like Ikea is no longer sufficient.
