Neighborhood Goods Proves Its New Department Store Model Works, As Macy’s And JCPenney Flounder

  • Date: 05-Jul-2020
  • Source: Forbes
  • Sector:Retail
  • Country:GCC
  • Who else needs to know?

Neighborhood Goods Proves Its New Department Store Model Works, As Macy’s And JCPenney Flounder

Neighborhood Goods Plano, TX



Courtesy of Neighborhood Goods



Traditional department stores have been experiencing a slow and painful to watch death for years. The pandemic may be the final nail in their coffin.



J.C. Penney and Neiman Marcus have declared bankruptcy. Sears and Lord & Taylor are all but gone, and Macy's is hanging on by a thread. Fellow Forbes.com contributors Greg Petro, Michael Lisicky, and Warren Shoulberg have recently done excellent work about the troubles in department stores.



The data detailing department stores' demise is indisputable. From 2009 to 2019, department store sales fell 26.7%, from $186.6 billion to $135 billion, in a retail market that grew 49.2%, excluding gas stations, automobiles and auto parts. And through the first five months of 2020, department stores are off another 21%, while retail is down only 1.7%.



Over the last ten years, traditional department stores have been figuratively rearranging the deck chairs on their sinking Titanics.



Now out of Texas comes a new department store, Neighborhood Goods, which is building a business model to take the department store into the future.



With three locations open in less than three years - Plano, Soho, and