The State of Department Stores

An excerpt of findings from L2's Digital IQ Index: Department Stores 2013 THE STATE OF DEPARTMENT STORES |*| |*| |* |*| 2000 5.0% U.S. Department Store Sales Growth in Decline' 2005 3.5% 2006 3.2% Hit from below by discounters that offer value, from above by specialty retailers with deft merchandising and, most recently, sideways by e-commerce players that offer a mix, the Department Store sector has lost share over 9 of the last 10 years. 2007 2.9% 2008 2.7% 2009 2.4% 2010 2.5% |*| |* In-Store Purchases Online Purchases But Dept. Stores are the s8% Preferred Retailer for 29% Department Store Department Store Websites Luxury Goods? 43% 21% Mass Retailer Mass Retailer Website Despite this decline, Department Stores remain the preferred destination among U.S. consumers for luxury apparel purchases both online and in stores. 42% 13% Discount Department Store Discount Department Store 35% 11% Outlet Store Online Discount Retailers 30% 9% Brand's Store Online Daily Deal Sites 19% Small, Independent Boutiques *| 45.1% Search Drives the 28.2% Most Traffic to 17.6% Dept. Store Sites Search is responsible for almost half of the upstream traffic to Department Store sites. Email is also key, driving a 6.3% share. Social Media Search Direct Referrals 6.3% accounts for just 2% of traffic, dominated by Facebook. 1.9% 0.9% Email Social Display Ads 64% | f 11% You YouTube Tube Brand Facebook Site 3% E Pinterest Twitter |*| |* |*| Department Store Presence on Social Media Brands have ignored Tumblr, focusing more on UGC-friendly emerging platforms such as Vine, Pinterest, and Instagram. 98% 93% 88% 85% 63% 60% 53% You O+ Tube Facebook Twitter YouTube Pinterest Google+ Instagram Vine Sina Weibo *I T*| |*| |*| |*| ! Most Common Features on iOS Apps Wish List/Registry Access Push Notifications 67% 58% Time spent shopping on retail apps has increased 525 % year-on-year since December 2011.5 Loyalty Program Access Store Locator 25% In-Store Coupon Department Stores favor iOS over Android and focus on e-commerce functionality. 13% 54% Scanning Capability Multiple Language Capability 42% 8% Read the full report excerpt at L2ThinkTank.com 12 Sources: "Department Stores Market Share," National Real Estate Investor, February 15, 2011. 2"Luxury Shopping Survey" Accenture, November 2012, n = 961. 3SimilarWeb, February-April 2013, n=40. ©2013 L2 "May 2013, n=40 5"Retailer mobile app usage grows five-fold in a year," Laura Barnes, PCR, January 28, 2013. L2ThinkTank.com