Department stores used to be retail’s main event, but today, shoppers aren’t walking in like they used to. Instead, they’re scrolling social media feeds and purchasing from brands directly. Consumers want speed, personalization, and a shopping experience that meets them where they are usually online.
The old model of massive footprints and one-size-fits-all assortments is fading. Many stores are struggling to keep up, with falling traffic and fading brand loyalty. Discover what shoppers want for the future of department stores, and how Charm.io can help department stores move forward.
Once iconic, department stores around the world are struggling to stay relevant in today’s retail environment.
The pressure comes from several directions. First, many stores were slow to adapt to the rise of online shopping. By the time they began investing in ecommerce, consumer expectations had already moved far ahead. Shoppers now demand seamless experiences that many legacy systems can't support.
Second, years of over expansion left retailers with too much square footage and not enough foot traffic. Physical stores are expensive to maintain, and without a strong digital counterpart, the ROI just isn't there.
Third, digital infrastructure remains a weak spot. Many department stores lack the tools to collect and act on real-time customer data, which limits their ability to personalize, forecast demand, or manage omnichannel operations effectively.
Finally, there's a disconnect between what stores stock and what customers actually want. Consumers are now driven by discovery, relevance, and speed. Traditional department store assortments often feel outdated or too broad to be meaningful.
All of this adds up to lower foot traffic, declining brand loyalty, and widespread store closures. To recover, department stores must fix these gaps, not just with new tech, but with smarter strategies that meet today’s shoppers where they are.
Consumer habits have already shifted and retailers need to be meet shoppers where they are (which is mainly on social platforms and online) and be in tune with their needs.
Online shopping has taken the lead. It’s how most people shop now, not just a backup option.
Consumers are glued to their phones. They browse on social media, discover through content, and expect purchases to be fast and frictionless. Speed, simplicity, and clear value drive decisions.
Department stores that don’t prioritize their online experience are losing attention. It’s not just about having a website, but it’s about making that site work as smoothly and smartly as today’s shopper expects.
Big-box competition is intense. But the real shake-up is coming from retailers who focus.
Consumers are drawn to price, but also to purpose. Specialized retailers offering niche products and curated assortments that feel more relevant than sprawling department floor plans.
DTC brands are winning attention because they speak directly to shoppers. They offer clear value, trend-savvy products, and authentic branding.
Shoppers want more than transactions. They want connection. DTC brands deliver that better than traditional department store labels.
To stay competitive, department stores need to do more than adjust, they need to rethink how they operate. The focus should be on smarter retail strategies that match the pace of today’s shoppers.
Shoppers don’t think in channels they expect everything to connect. They want the freedom to browse online, check stock on their phone, pick up in-store, and return through whatever method is easiest. This means the in-store and online experience can’t exist in silos.
Successful department stores are investing in omnichannel setups in 2025. That includes seamless click-and-collect systems, real-time inventory updates across platforms, and shared loyalty programs. Social commerce integrations, like TikTok Shop and Instagram Checkout, let shoppers buy straight from the content they’re already engaging with. Live shopping adds urgency and interactivity to product discovery.
Retailers can also strengthen their omnichannel strategy by teaming up with fast-growing DTC brands. These partnerships bring fresh product assortments, built-in customer communities, and proven social selling tactics into department store ecosystems. When executed well, they expand reach for both sides and create a shopping experience that feels current and connected.
Product selection matters, but experience is what brings shoppers back. Modern department stores need to shift from transactional spaces to experiential ones. That means less focus on stocking every item and more on giving shoppers a reason to engage. In-store events, personalized styling sessions, smart mirrors, and interactive displays make the space feel like more than just a place to buy.
Data is key. With insights on purchase history, regional trends, and customer behavior, stores can customize displays, tailor promotions, and optimize layouts by location. Even something as simple as adjusting product assortments by zip code can improve sell-through and reduce excess inventory.
Charm.io can help department stores adapt by providing tools to identify, evaluate, and connect with modern brands that match changing consumer demand. Retailers need to discover fast-growing brands that would be good for their store to make informed merchandising decisions, optimize their product assortment, and drive sales.
Charm enables department stores to identify high-growth DTC brands across multiple verticals. You can filter brands by size, growth trajectory, digital signals, and product categories. This helps retailers source brands that are actively scaling and aligned with their customers.
Charm's proprietary metrics help retailers evaluate brands based on ecommerce performance. Charm Growth Score measures signals like web traffic, social media momentum, and ad activity. CharmSuccess Score helps prioritize brands based on presence across key ecommerce and retail channels.
Charm monitors millions of DTC brands and tracks performance shifts daily. Retailers can view brand profiles, estimated revenue, product count, social reach, and market distribution. These insights support smarter assortment decisions, influencer partnerships, and competitive analysis.
Department stores can be able to track brand rankings and compare performance across subcategories, helping them understand which brands are outpacing their peers. This makes it easier to replace underperformers and fill assortment gaps quickly.
Charm.io equips department stores with ecommerce insights that align with how and what people are shopping for today, making it easier to compete in a digital-first retail market.
Department stores aren’t dead—but the old model is. To stay relevant, they need to shift from being everything-for-everyone to being smart, curated marketplaces.
Charm.io gives them the tools to do it. With real-time data and DTC discovery features, department stores can reinvent themselves around what consumers want right now.
The department store isn’t disappearing. It’s redesigning itself to stay in the game.
Get further insights into brands in any ecommerce category when you book a demo with Charm.io today.
Have questions about Charm? Attend our upcoming Charm 101 webinar to hear from our Customer Success Managers about how to build the perfect pipeline and find ecommerce insights with Charm.