Department Store in Bloom

Diva is a real fan of Bloomingdale’s hip, smaller (124,000-sq-ft.) store, targeted at a younger audience--the first one of which opened in New York’s SoHo a few years back. That store caters to denizens of the trendy Downtown New York neighborhood and well-heeled tourists--many of them foreigners, dizzy with the flush of finding out how far their currencies go in relation to the weak U.S. dollar.

Now, the retailer has announced that it is going forward with this concept. Similar stores will open in Georgetown, Washington, D.C., and in Santa Monica, Calif. Neighborhoods in these locations have demographics that echo the SoHo audience-base, including an influx of tourists. Bloomie’s has discovered a winning formula that it can use to drive its brand into new markets and to appeal to a new customer niche--one that speaks to the future by building loyalty among a new generation of younger shoppers. [While Bloomie’s has always attracted some young shoppers, most department stores tend to attract somewhat older audiences than specialty stores.]

In addition, this plan is in line with what many retailers are doing now--moving to a smaller, “high-efficiency” format. Consumers, especially the younger generations, are more comfortable with a more intimate retail space [and one that is somewhat residential in feeling], as opposed to the vast [almost clinical] space of big-box stores and discount superstores (although the latter does offer the benefits of one-stop-shopping, which has its advantages). Rethinking the footprint, floor plan and merchandise presentation, and fine-tuning stocks with reference to local audience needs is the wave of the future for retail. Such stores can pay off with higher margins and profitability for the retailer [as well as cost savings], and, if well executed, they can better meet the needs of consumers as well.

So, Diva will be there, to crack a bottle of champagne to help celebrate when Bloomie’s launches these two new stores and to wish them success. [But, Diva is still a rabid devotee of Bloomingdale’s 59th Street store--truly a one-of-a-kind store.]

--Diva