Department stores on the downswing, says retail analyst

A retail analyst thinks the world of shopping is rapidly changing.

Craig Patterson, the editor-in-chief of retail-insider.com, spoke with Gormley on Tuesday about the future of big-box stores.

Closures of businesses like Pier 1, Carlton Cards, Forever 21 and more prompted the discussion. Patterson estimates more than 1,000 stores will have closed from the start of 2020 to the end of March.

He thinks department stores have taken the biggest hit.

“Department stores are partly to blame for their own demise. In many cases, they actually developed suburban shopping malls and competition came from brands that were able to stand on their own,” he explained.

He also pointed to a shift in the culture around shopping.

“Retailers have to make themselves memorable. In years past, they were very much a part of our life. There would be weddings, celebrations, the Christmas parade, that sort of thing. That got into the psyche of the consumer,” he said.

“I don’t think retailers are doing that now, and if they’re not, they’re not going to be at the top of mind, because consumers are going to be distracted by something else.”

As for what may replace them, Patterson brought up online shopping, but wasn’t pessimistic about the fate of brick-and-mortar stores in general.

“I think we’re moving to a world of fewer stores, but better ones,” he said. “Physical retail is still relevant.”

You can catch the entire interview here.