{"id":1753348,"date":"2026-02-05T05:30:00","date_gmt":"2026-02-05T02:30:00","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=1753348"},"modified":"2026-02-05T05:30:00","modified_gmt":"2026-02-05T02:30:00","slug":"whats-working-and-whats-not-for-us-department-stores-in-2026","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=1753348","title":{"rendered":"What\u2019s Working \u2014 and What\u2019s Not \u2014 for US Department Stores in 2026"},"content":{"rendered":"

[analyse_image type=”featured” src=”https:\/\/assets.vogue.com\/photos\/69838275c6a91e5e31420d94\/16:9\/w_1280,c_limit\/department-stores-name-vogue-business-social-newsletter.jpg”]<\/p>\n

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Retail<\/span><\/div>\n<\/div>\n<\/div>\n

What\u2019s Working \u2014 and What\u2019s Not \u2014 for US Department Stores in 2026<\/h1>\n<\/div>\n
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By <\/span>Maura Brannigan<\/span><\/span><\/span><\/div>\n

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Photo: Getty Images \/ Artwork by Vogue Business<\/em><\/span><\/div>\n<\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/header>\n<\/div>\n<\/div>\n
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When Saks Global filed for Chapter 11 bankruptcy protection in January, it raised uncomfortable questions about the viability of the American department store. Can a retail model built on volume and variety survive in an era of Amazon Prime and direct-to-consumer brands? And if department stores disappear, what happens to the designers and the brands that rely on them for distribution, credibility, and scale?<\/p>\n

While Saks restructures under the weight of strained vendor relationships and mounting debt, other major players are fighting back against the narrative that the model is dying \u2014 and positioning themselves to capitalize on the moment. Nordstrom, which went private in late 2024, is reinvesting in its stores as it celebrates its 125th anniversary with ambitious expansion plans. Macy\u2019s Inc. posted a 3.2% comparable sales increase in its most recent earnings \u2014 its strongest performance in 13 quarters \u2014 while its luxury banner Bloomingdale\u2019s delivered its best results in over three years. Bloomingdale\u2019s is also in the midst of reimagining its 59th Street flagship, floor by floor, introducing 56 new designers this year and building out a two-level Chanel boutique.<\/p>\n

\u201cThe traditional department store model that was offering volume, novelty, and variety in one place is not unique any longer,\u201d says Thoma\u00ef Serdari, a luxury marketing professor at New York University (NYU). \u201cThe question is: what is the value add that a retailer needs to offer to the customer?\u201d<\/p>\n

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Photo: Getty Images<\/span><\/div>\n<\/figure>\n

This is shaping up to be a survival-of-the-fittest year for US department stores. Through interviews with shoppers, retail analysts, and department store executives, a clear picture emerges: the winners aren\u2019t just surviving by offering volume and variety; they\u2019re fundamentally rethinking what a department store should be.<\/p>\n

Destination, not convenience<\/strong><\/h2>\n

The most successful department stores have shifted from transactional retail to experiential destinations that offer something consumers can\u2019t get from Amazon or a direct-to-consumer (DTC) brand.<\/p>\n

\u201cWhen department stores were popular, especially in the \u201950s and \u201960s, you saw families spend hours there, because there was always something fun to do \u2014 like watch a fashion show, join clubs, and listen to live music,\u201d says Hannah Truly Elisha, a content creator focused on retail history. \u201cThe experience, I believe, is the most important part, and something department stores have slowly erased. They are not giving me a reason to choose them over Amazon.\u201d<\/p>\n

Nordstrom has leaned into this philosophy with partnerships that extend beyond traditional retail. Last year, the company launched a collaboration with aesthetics clinic SkinSpirit, bringing medspa services to select stores. In New York City, Nordstrom partnered with West Village fine jewelry destination Muse as the cornerstone of its flagship\u2019s new Jewelry Hall. The company is also expanding its network of Nordstrom Locals \u2014 service hubs that offer tailoring; buy online, pick up in-store; and returns in neighborhoods across the country.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Instagram content<\/h4>\n<\/div>\n<\/div>\n<\/div>\n

Bloomingdale\u2019s is taking a similar approach. Chief merchant Denise Magid says the company is giving its 59th Street flagship a full facelift, one floor at a time, bringing that curation to life through \u201cimmersive campaigns, in-store animation, and personalized clienteling\u201d.<\/p>\n

\u201cThe future of the department store is centered on curation, experience, and human expertise, not simply scale or endless assortment,\u201d Magid says.<\/p>\n

Serdari argues that thriving retailers have cracked the code on creating environments that feel like respites rather than obstacles. \u201cWhen you walk into Nordstrom, you\u2019re not stressed out,\u201d she says. \u201cPeople are not interested in seeing hanger after hanger of dresses. They want places to rest; they want places to be entertained. The interior layout of the department store needs to change. How do you interrupt the flow of presenting the merchandise by genuinely providing opportunities to the end consumer to be in an interesting environment, be stimulated, be entertained, be educated about the product in a different way?\u201d<\/p>\n

The stores getting it right are doing exactly that. Macy\u2019s offers a clear example: the retailer\u2019s Go-Forward stores \u2014 the locations it has chosen to invest in and modernize \u2014 are posting positive comparable sales growth, driven by enhanced merchandising, improved store presentation, and stronger omnichannel integration. The 125 stores that have undergone the most targeted upgrades, known as Reimagine 125 locations, are outperforming the rest of the fleet. It\u2019s a sign that when department stores make strategic in-store investments, rather than trying to compete on breadth alone, consumers respond.<\/p>\n

Curation over volume<\/strong><\/h2>\n

The experience shift is only half the equation. Today\u2019s shopper doesn\u2019t want more, they want better \u2014 and the brands they can\u2019t find everywhere else. This is a delicate balance for department stores, which have historically leaned on big-name brands that guarantee sales. But the most successful retailers are betting that discovery \u2014 not just reliability \u2014 is what brings shoppers through the door.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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\u201cI think the downfall of a department store is having too much,\u201d says Diana-May Kirori, a New York-based content creator and frequent department store shopper. \u201cYou just need to know where the line is of where people may feel overwhelmed versus where they feel like it\u2019s a really good curation.\u201d<\/p>\n

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Photo: Courtesy of Nordstrom<\/span><\/div>\n<\/figure>\n

Bloomingdale\u2019s is betting heavily on this strategy. While luxury remains core to the business, Magid says growth is \u201ccoming from a balanced mix of luxury, premium contemporary, and emerging brands, reinforcing Bloomingdale\u2019s role as a true incubator in the retail landscape\u201d. The retailer dedicates floor space and marketing support to emerging designers, treating them not as filler, but as future anchors. It\u2019s seeing particularly strong performance in premium contemporary, fine jewelry, luxury fragrance, and home (especially tabletop).<\/p>\n

Nordstrom is taking a similar approach, positioning itself as a platform for both established and emerging designers to connect with an engaged community of shoppers. The retailer works closely with smaller brands to help them scale, offering merchandising support, data insights, and visibility they wouldn\u2019t receive elsewhere. The retailer\u2019s Make Room for Shoes campaign is a nod to its roots \u2014 Nordstrom, after all, started as a shoe store back in 1901 \u2014 but it\u2019s also a commitment to discovery, spotlighting both heritage names and up-and-coming footwear designers.<\/p>\n

Gabriella Santaniello, founder and CEO of retail consultancy A Line Partners, points to smaller format stores as evidence that curation works. She cites Stanley Korshak in Dallas, Elyse Walker in Los Angeles, and A\u2019marees in Newport Beach as examples. \u201cAll three are smaller format stores with multiple brands and have a highly curated assortment of merchandise,\u201d she says. \u201cThey know their customers and don\u2019t try to be anything else.\u201d<\/p>\n

Serdari draws a parallel to European retail, where smaller boutiques coexist with department stores that serve a different function. In cities like Paris and Rome, you can buy everyday items at local shops, then visit a department store for the kind of curated, elevated merchandise that feels genuinely special.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The stores that will survive, Santaniello predicts, are \u201cthe ones that realize they need to edit the vendor list, curate the assortments and provide top-tier customer service\u201d.<\/p>\n

Service as strategy<\/strong><\/h2>\n

In a fragmented retail landscape, customer service and loyalty programs have become critical differentiators, while the stores that underinvest here are often the ones filing for bankruptcy.<\/p>\n

\u201cFor me, Nordstrom has always been the golden standard when it comes to customer service,\u201d Santaniello says. \u201cThere is nothing that can replace it.\u201d<\/p>\n

Nordstrom has built that reputation through investments that go beyond the transactional. Its Nordy Club loyalty program offers members early access to products, events, and exclusive experiences, while expanding tailoring, alterations, and styling services in neighborhood hubs. The company also empowers sales associates to make decisions that prioritize the customer experience over rigid corporate policy \u2014 a flexibility that\u2019s increasingly rare in retail.<\/p>\n

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The alterations service at Nordstrom Local located in Fillmore, San Francisco.<\/p>\n

<\/span>Photo: Courtesy of Nordstrom<\/span><\/div>\n<\/figure>\n

For shoppers, this translates to tangible benefits. Kirori appreciates being able to \u201cspeak with a sales associate, especially if they know the brand well\u201d. She also values discovering in-store sales that aren\u2019t advertised online.<\/p>\n

But inconsistent service is where some prestigious retailers fall short. \u201cStores that are held in high esteem for their customer service, like Saks Fifth Avenue and Macy\u2019s, don\u2019t do that for everyone, and that\u2019s a problem,\u201d says Elisha. \u201cNot all customers come first. Customers with money do.\u201d<\/p>\n

It\u2019s exactly that kind of inconsistency that may be part of what\u2019s separating survivors from casualties. When Saks Global filed for bankruptcy, analysts pointed to strained relationships with vendors \u2014 relationships built not just on business terms, but on trust and consistent treatment.<\/p>\n

Santaniello predicts the Saks bankruptcy will create pressure in the space, because they will likely start discounting. Vendors who are owed money might also change how they do business with department stores, she says, in order to avoid a similar situation in the future.<\/p>\n

Serdari frames the challenge more broadly: department stores can no longer rely on demographic stratification. Retailers need to \u201ctruly look at their own customers and try to understand who they are and what drives them\u201d, she says.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n

[analyse_source url=”http:\/\/vogue.com\/article\/whats-working-and-whats-not-for-us-department-stores-in-2026″]<\/p>\n","protected":false},"excerpt":{"rendered":"

[analyse_image type=”featured” src=”https:\/\/assets.vogue.com\/photos\/69838275c6a91e5e31420d94\/16:9\/w_1280,c_limit\/department-stores-name-vogue-business-social-newsletter.jpg”] Retail What\u2019s Working \u2014 and What\u2019s Not \u2014 for US Department Stores in 2026 By Maura Brannigan February 5, 2026 Photo: Getty Images \/ Artwork by Vogue Business When Saks Global filed for Chapter 11 bankruptcy protection in January, it raised uncomfortable questions about the viability of the American department store. Can […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[226,50],"class_list":["post-1753348","post","type-post","status-publish","format-standard","hentry","category-politics","tag-crawlmanager","tag-vogue-com"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1753348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1753348"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1753348\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1753348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1753348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1753348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}