A Wren Says

If you go back in my posts, you will see that I wrote about the whispers of a Saks and Neiman Marcus merger. As of late, the brands have agreed to a deal to bring the two mega luxury department stores under one roof, so to speak. In my previous post, I questioned what that might mean for consumers, with some hesitations. But the other question I have is around what that already means about what consumers think.

If the department store as a concept were thriving, this is not a deal we would even be questioning. Both would be off doing their own thing. But they aren’t. Sales have been down. People have been discussing the decline of the shopping mall as we know it. But that is key, as we know it.

After the shut down and being locked away from experiencing so much of the physical world, there is a resurgence in the desire for experiences. Travel is up to record levels. Brands are doing pop-ups everywhere to engage with consumers. People are getting person more and more. And to an extent, in-store shopping is back up. So if isn’t that people don’t want to shop in-person anymore, what is leading to the decline?

As these brands begin their merger agreements, I hope they do so with the intent to innovate. To think through not just how they can cut costs and close stores but how they can better serve the new desires of the consumer. How can they rebrand themselves as the premiere place to experience luxury in all of its forms. And how they can position themselves in the hearts and minds of the market as the place they have to be.

What is it that the luxury consumer is looking for next? And how can Saks and Neiman prepare to meet that need in a first class fashion?