Department stores + online = inevitable.
The latest one to do so is Selfridges ,investing its own £40m website to “future-proof its multichannel business.” Originally launching in 1909 in UK, this is the biggest single investment online since launching the e-commerce platform in 2010. As a result of going online, sales doubled year over year and key international markets came flooding in. Among them include Hong Kong, China, the US, Australia, Singapore and France. Among top 100 brands will include Bruno Cucinelli and Burberry.
While this is a sizable investment, the likelihood of success really depends on how innovative and strategically prepared the department store from an operational perspective. It takes years for a vertically integrated brand to fully transition and adopt a fully seamless online and offline model. The IT systems, operational needs, merchandising systems, and fulfillment processes are all impacted and require a smooth, cohesive plan and execution. Now, take this consideration to a department store level, which has had a traditionally robust but stagnant operating structure. To instill change and build in a new platform that seamlessly feeds into the entire model will be a large undertaking.
Nevertheless, it is a great sign to see one of the best department stores taking incremental steps to showcase how valuable and necessary digital investments will be for the future of retail.
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