When strategy pales: lessons from the department store industry

Citation

(2010), "When strategy pales: lessons from the department store industry", Strategic Direction, Vol. 26 No. 7. https://doi.org/10.1108/sd.2010.05626gad.008

When strategy pales: lessons from the department store industry

Article Type: Abstracts From: Strategic Direction, Volume 26, Issue 7

Johnson H.H. and , Kim S.M. Business Horizons (USA), December 2009, Vol. 52 No. 6, Start page: 583, No. of pages: 11

The traditional department store was clearly the center of retail activity in cities and small towns in the United States during the first half of the twentieth century. However, by the late 1970s and beyond, the department store industry began experiencing financial problems, and serious questions were being raised as to whether their demise was eminent. This article traces the evolution of the industry, and explores some of the underlying dynamics for the changes in the retail trade sector, including the emergence of new alternative retail formats, such as discount stores and category killers. This study further explores the major strategies used by the leading traditional stores with reference to new industry life cycle models and a strategic positioning framework. Of particular interest is the discussion regarding: Were the traditional department stores “locked in” to a declining trajectory? How effective were their strategies to counter the decline of the industry? And what were and are the repositioning options available to the traditional department stores? Article type: Research paper ISSN: 0007-6813 Reference: 39AB317

Keywords: Department stores, Industry performance, Organizational restructuring, Strategic planning