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So, there's a few factors in my own choice of shopping that makes them a bit redundant: 1) 25 years ago, supermarkets (with exception of Coop) didn't really se

So, there's a few factors in my own choice of shopping that makes them a bit redundant: 1) 25 years ago, supermarkets (with exception of Coop) didn't really sell appliances, books, video games consoles, etc. in the same quantity that they do now. So people don't need to go to a department store as frequently because of that, because they can pick up household. It's maybe not the best example, because it's been killed by the collapse of Philip Green's empire, but until recently my local Tesco had outlets for Topshop, Outfit, etc. in it. Sainsbury's has Argos in it in lots of stores now. And these are much more local to people's houses. 2) On top of that is online shopping. That's another place you can go that's more convenient than going to a department store. They have stock online! Often department stores did not. 3) When you do go to a department store, they're usually more expensive for the same or lower quality as elsewhere. John Lewis and Selfridges are the only ones I've purchased anything in in the last 10 years and that's because they have a good range of stuff, and for John Lewis in particular, it's known for having good customer service on things like returns of faulty goods and long warranties. It's also the only one of them that actually had stock in? Debenhams and BHS prior to closing were a mess for e.g.

beojan 5y ago
An alternative way of phrasing your first point is to say supermarkets are turning into department stores.
- mbg721 5y ago
  The US also had the opposite phenomenon, where discount department stores (WalMart, Target) started having larger and larger grocery sections.
jillesvangurp 5y ago
There's that and there's the notion that in a lot of countries, struggling department store chains have ended up in the hands of hedge fund investors, who promptly started squeezing them for money. It's a parasitic form of company ownership where the share holders enrich themselves and then eventually ditch what little remains of the companies they get involved with. One of the financial constructions you see a lot when that happens is the hedge-fund selling off the buildings, funneling the gains to shareholders, and leasing back the building. This raises cost which they then compensate for through "restructuring" rounds (i.e. layoffs). Once all value is squeezed out, they sell for a small price or bankruptcy is triggered. Everybody looses, except the hedge fund investors. Once companies get to the stage hedge fund investors get involved, the writing is on the wall. I think of them more as a symptom then a cause. Weakness through eroded business and failure to adapt come first.

beojan 5y ago

An alternative way of phrasing your first point is to say supermarkets are turning into department stores.

mbg721 5y ago
The US also had the opposite phenomenon, where discount department stores (WalMart, Target) started having larger and larger grocery sections.

jillesvangurp 5y ago

There's that and there's the notion that in a lot of countries, struggling department store chains have ended up in the hands of hedge fund investors, who promptly started squeezing them for money. It's a parasitic form of company ownership where the share holders enrich themselves and then eventually ditch what little remains of the companies they get involved with. One of the financial constructions you see a lot when that happens is the hedge-fund selling off the buildings, funneling the gains to shareholders, and leasing back the building. This raises cost which they then compensate for through "restructuring" rounds (i.e. layoffs). Once all value is squeezed out, they sell for a small price or bankruptcy is triggered. Everybody looses, except the hedge fund investors. Once companies get to the stage hedge fund investors get involved, the writing is on the wall. I think of them more as a symptom then a cause. Weakness through eroded business and failure to adapt come first.