Why the future of department stores relies on in-store experiences, not just products

Why the future of department stores relies on in-store experiences, not just products

Questions are mounting over the future of David Jones, following reports the company has been handed over to administrators and receivers for the first time in 188 years of trading. An RMIT expert says it highlights the pressures facing modern department stores, which can no longer compete on convenience alone and must increasingly differentiate themselves through personalised service and in-store experiences.   

Associate Professor Carol Tan, School of Fashion and Textiles:    

"Department stores are under growing pressure. Online shopping has given consumers  more purchasing options than ever before, leaving them less likely to visit a physical store. 

“The future of the department store may be less about selling products and more about providing advice, expertise and confidence. 

"When customers visit a store they often have a goal in mind, whether it’s preparing for a conference, holiday, job interview or another important occasion. The opportunity is to have knowledgeable staff who can act as advisors or stylists, helping customers navigate options across different brands and departments.  

"Retailers also need to offer experiences that cannot easily be replicated online. That could include styling workshops, masterclasses and opportunities to learn directly from designers and product experts. These experiences give customers a reason to visit a store rather than simply making a purchase. 

"Department stores can also use their physical space more dynamically through pop-ups, residencies and short-term activations to introduce customers to new brands, designers and products they may not otherwise encounter. This adds value for everyone involved as customers discover new brands, brands gain access to physical space without committing to a permanent store, and retailers create reasons for shoppers to keep coming back.

"The retailers that succeed will be those that combine advice, experiences and discovery in ways that add value beyond the transaction." 

Dr Carol Tan is an Associate Professor and Program Manager of the Master of Fashion Entrepreneurship at RMIT University, with research expertise in SME competitive advantage, growth strategies and enterprise resilience.  

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General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

05 November 2026

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05 November 2026

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