Behind the Numbers: Reimagining Retail – How French Department Store Icon Printemps Is Reinventing US Retail

Episode Release Date: April 16, 2025

Introduction

In this insightful episode of EMARKETER’s "Behind the Numbers" podcast, host Sarah Lebo delves deep into the evolving landscape of department stores amidst the rise of e-commerce and shifting consumer behaviors. The focus centers on the iconic French department store, Printemps, and its groundbreaking new flagship store in New York City. Joining Sarah are Suzy David Canyon, VP of Content for the Retail Desk, and Karina Perkins, an industry analyst from the UK. Together, they explore the challenges and innovations reshaping the future of retail.

State of Department Stores in the US

The discussion begins with an overview of the current state of department stores in the United States, prompted by the recent bankruptcy filing of Hudson Bay, a venerable Canadian department store chain.

• Suzy David Canyon's Insights:

  • “There’s nowhere where the one-stop-shop model is still supported. The proliferation of specialty stores has diminished the relevance of traditional department stores.” [01:53]
  • Suzy emphasizes that high-end department stores like Bloomingdale’s are faring relatively well, offering unique shopping experiences that justify their places despite crowded environments. However, mid-tier stores such as J.C. Penney and Lord & Taylor are struggling, primarily because they lack a distinct value proposition.

• Karina Perkins Adds:

  • “85% of department stores occupied by traditional operators in the UK have closed down, transitioning to online-only or trendy new formats.” [03:37]
  • She parallels the US scenario, highlighting that while e-commerce marketplaces thrive as one-stop shops online, their physical counterparts are not translating this success effectively in brick-and-mortar settings.

Challenges Facing Mid-Tier Department Stores

The conversation shifts to the specific hurdles mid-tier department stores encounter in maintaining profitability and relevance.

• Suzy David Canyon Observes:

  • “If you do not have unique to you brands, whether it’s private label or market brands that are not being sold elsewhere, then you’re going to lose because people will go online and look for the lowest price point.” [05:12]
  • Suzy points out that mid-tier stores often struggle with authentic online experiences and mobile integrations that bridge physical and digital shopping.

• Karina Perkins Notes:

  • “The cost of running large stores versus profitability is tricky to maintain at the moment.” [05:51]
  • She underscores the financial strain of maintaining extensive physical spaces without adequate sales to justify the expenses.

Evolving Mall Landscapes

The role of malls as traditional anchors for department stores is scrutinized, questioning whether the decline of mall foot traffic is reciprocally affecting department store performance.

• Suzy David Canyon Questions:
  • “Does the decline of malls make the department store anchor suffer when there’s not as much foot traffic?” [04:54]
  • The dynamic interplay between mall health and department store viability is explored, with Karina confirming similar trends in UK high streets where reduced footfall adversely impacts store performance.

Field Trip to Printemps NYC Flagship

Sarah and Suzy embark on an exclusive field trip to Printemps’ newly opened flagship store in New York City’s Financial District, offering a firsthand look at how a traditional European department store is adapting to the American market.

• Store Layout and Merchandise:

  • “It was a very majestic store, with an airy, almost Alice in Wonderland-like feel. The fixtures and mirrors created an inspirational environment, albeit with limited merchandise.” [08:24]
  • Suzy highlights the minimalistic approach to product display, focusing on curated selections rather than overwhelming assortment.

• Experiential Elements:

  • “There were four different bars in the two-story store, each offering high-end beverages. It’s a great place for both tourists and Wall Street professionals to unwind.” [09:21]
  • The integration of drink bars and experiential spaces is noted as a key strategy to attract diverse customer segments.

• Absence of Technology:

  • “We saw nothing in terms of QR codes or interactive tech, except for a single QR-coded map.” [14:24]
  • The store’s low-tech environment contrasts with expectations, suggesting a deliberate focus on personalized, human-driven service.

• Exclusive Partnerships:

  • “They had a Nike residency with an exclusive shoe limited to 350 pairs, creating a unique draw for sneaker enthusiasts.” [11:32]
  • Suzy emphasizes the importance of exclusive collaborations in driving foot traffic and offering unique value propositions.

Lessons for Contemporary Department Stores

Drawing from the Printemps experience, the hosts distill key lessons that contemporary department stores must adopt to thrive in 2025.

• Experiential Retail:

  • Karina Perkins states, “It’s about making it a destination. People come to Harrods to be part of the tourist journey, not just to shop.” [11:14]
  • The focus shifts from purely transactional retail to creating immersive experiences that cannot be replicated online.

• Curated Assortment and Exclusivity:

  • Suzy David Canyon asserts, “Department stores need to be well curated and their assortment needs to be well thought out.” [21:20]
  • A selective and thoughtfully curated product range helps in distinguishing the store from generic e-commerce options.

• Enhanced Loyalty Programs:

  • “Having a really strong loyalty program will draw people in more frequently and help mitigate the need for constant discounting,” suggests Suzy [18:29].

• Integrated Food and Beverage Offerings:

  • Karina Perkins notes, “Food and drink concessions are another great way to draw people in.” [19:12]
  • Incorporating dining and social spaces encourages longer visits and enhances the overall shopping experience.

• Beauty and Personal Care Focus:

  • “Beauty is an important department as it offers repeatable purchases and experiential services,” explains Karina [20:19].
  • Department stores are increasingly emphasizing beauty and personal care sections to foster customer loyalty and frequent visits.

Conclusion

The episode wraps up with a consensus that the future of department stores hinges on their ability to reinvent themselves as experiential destinations with curated offerings and exclusive partnerships. Printemps’ NYC flagship serves as a model for blending luxury retail with immersive experiences, catering to both high-end consumers and modern shoppers seeking unique, memorable interactions.

• Final Takeaways:
  • Karina Perkins: “Experiential.” [21:20]
  • Suzy David Canyon: “Well curated and their assortment needs to be well thought out.” [21:23]

Sarah Lebo concludes by emphasizing the importance of continual adaptation and innovation in the retail sector to meet the evolving demands of consumers.

Notable Quotes:

• “Department stores need to be well curated and their assortment needs to be well thought out.” – Suzy David Canyon [21:24]
• “It’s about making it a destination. People come to Harrods to be part of the tourist journey, not just to shop.” – Karina Perkins [11:14]
• “Having a really strong loyalty program will draw people in more frequently and help mitigate the need for constant discounting.” – Suzy David Canyon [18:29]

Key Insights:

1. Shift from Volume to Experience: Department stores must transition from being mere shopping venues to curated experiential destinations.
2. Exclusive Partnerships: Collaborations with brands for exclusive products or residencies can drive unique foot traffic.
3. Integration of Food and Beverage: Incorporating dining options enhances the shopping experience and encourages longer visits.
4. Emphasis on Beauty and Personal Care: Focusing on sectors that offer repeat purchases and experiential services builds customer loyalty.
5. Strong Loyalty Programs: Developing robust loyalty initiatives can increase frequent visits and reduce reliance on discounts.

Conclusion:

The "Reimagining Retail" episode provides a comprehensive analysis of the current challenges and future opportunities for department stores. Through the lens of Printemps' innovative NYC flagship, it becomes evident that success in the modern retail landscape requires a blend of curated offerings, experiential elements, exclusive collaborations, and strong customer loyalty programs. As department stores navigate the complexities of e-commerce and changing consumer preferences, those that adapt by creating immersive and unique shopping experiences are poised to thrive.