Department store performance has been rocked by the pandemic, which is no surprise. This retail segment was already struggling prior to the pandemic, and the event only exacerbated existing issues. However, recent location analytic data from Placer.ai suggests that there could be opportunity for department stores following the pandemic—namely that department stores allow for the compilation of several brands and items under one roof.

There are many variations of successful models that department stores can deploy to capture foot traffic and fulfill demand. According to Placer.ai, this could include a Neighborhood Goods model that sells direct-to-consumer goods. Another approach is through outdoor shopping centers, as retailers like Kohl's has done, and finally, department stores have the opportunity to partner with traditional brands to help them recover their retail footprint.

Other department stores have found opportunity in supporting ecommerce and online shopping. A recent report from Reonomy found that big-box retailers were converting brick-and-mortar locations into fulfillment centers. Bed, Bath & Beyond for example, converted 25% of its brick-and-mortar stores into regional fulfillment shops.