<\/p>\n
\n\tFor Olivier Bron, chief executive officer of Bloomingdale\u2019s, it\u2019s all about balance.<\/p>\n
\n\tThat would be maintaining a balance in the merchandise presentation, a balance between short- and long-term goals, and a business model shaped by both art and science.<\/p>\n
\n\t\u201cIt can\u2019t only be about data, data, data. At some point, it\u2019s about relationship building. It\u2019s about experience. It\u2019s about emotions, which are very important. We probably lost a bit of that in the U.S.,\u201d he said on Thursday. The CEO was at the Wharton Baker Retailing Center CEO Summit in Manhattan, and in a conversation with Christine Barton, CEO Advisory, North American Lead at the Boston Consulting Group.<\/p>\n
\n\tBron came down pretty hard on retailing in the U.S. <\/p>\n
\n\t\u201cIt\u2019s very skewed toward short-term returns,\u201d he said. \u201cYou can\u2019t build a brand that way.\u201d Particularly in the case of Bloomingdale\u2019s, which presents a balance of premium contemporary to high luxury brands, as well as a balance of fashion and home furnishings.<\/p>\n
\n\tBloomingdale\u2019s had a standout performance in the second quarter, posting a comparable sales gain of 11.3 percent \u2014 bringing its volume to $922 million, its highest second-quarter sales total in the history of the brand. Sources have estimated the brand generated around $4 billion in sales in 2025.<\/p>\n
\t\t\t\t\tBloomingdale\u2019s 59th Street flagship in New York City.<\/p>\n
\t\t\t\t\t\t\t\t\tNurPhoto via Getty Images<\/p>\n
\n\tBloomingdale\u2019s \u2014 which operates 31 department stores, 25 outlets and four of its smaller format Bloomie\u2019s stores \u2014 is being propelled in the U.S. by the \u201cK-shaped\u201d economy, which has helped the luxury market rebound this year compared with Europe and Asia.<\/p>\n
\n\t\u201cThe economy is not bad for us,\u201d Bron observed.<\/p>\n
\n\tHe also said Bloomingdale\u2019s net promoter scores, or NPS, are the highest they\u2019ve ever been. \u201cBut also the vibe and the energy right now at Bloomingdale\u2019s is amazing.\u201d<\/p>\n
\n\tIn an apparent reference to the Exemplar Luxury Group, which operates Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman and emerged from bankruptcy in June, Bron said: \u201cWe know some competitors have been unfocused recently, which gives us some room and some opportunities. It probably helped the great performance of Bloomingdale\u2019s over the past 24 months. 2025 has been the new high water mark for Bloomingdale\u2019s. In 2026, I hope we will be well above that, so it definitely helped. About probably 25 percent of this performance is due to the challenges that others faced at some point over the past 12 to 24 months. But I really believe it\u2019s our strategy that\u2019s [providing] the biggest impact and driving the biggest results for us.\u201d<\/p>\n
\n\tHe said Bloomingdale\u2019s has generally been risk averse. <\/p>\n
\n\tBut added that: \u201cRetail and particularly fashion retail is about taking risks. Over the last three years, we took some risks in buying or investing in some not so short-term ROIs.\u201d He also said 80 percent of the products sold at Bloomingdale\u2019s are bought wholesale, which is riskier than the concession model but also potentially more profitable, depending on the brand.<\/p>\n
\n\tBron emphasized that Bloomingdale\u2019s is on a mission to transform its experience to be more like what\u2019s found at a brand or designer boutique, where typically the fashion is more dramatically displayed, there\u2019s better ambience and service, and there\u2019s storytelling capturing the brand image and essence.<\/p>\n
\n\tAlso, \u201cWhen you go in a U.S. department store, it\u2019s pretty obvious there is a big difference versus what you experience in Europe or in Asia. The experience of department stores here is like this forest of racks with a lot of brands, packed with products. Some department stores have great products. But it\u2019s boring.\u201d<\/p>\n
\n\tThere\u2019s more to purchasing a luxury handbag than just spending thousands of dollars on the actual product, Bron said. \u201cYou\u2019re buying a brand. You\u2019re buying a social marker. You\u2019re buying an experience that makes it worth what you bought, and this is really what I think the department store world lost a bit of over the past 30 years. It\u2019s this branding, this storytelling, that has become increasingly important for the customer and for our brand partners.\u201d<\/p>\n
\n\tStill, he said talk of the death of department stores is off the mark as hundreds of millions of consumers continue to visit them each year.<\/p>\n
\n\t\u201cIt\u2019s still a very relevant model, maybe slightly eroding in traffic and in number of customers here and there, but it\u2019s not a fatality,\u201d Bron said. \u201cIf we do it right, I\u2019m absolutely convinced \u2014 and this is what we\u2019re experiencing at Bloomingdale\u2019s \u2014 the number of customers are increasing and the sales are increasing. I think we\u2019re more relevant than what we used to be.\u201d<\/p>\n
\n\tHe said the best way to invest in Bloomingdale\u2019s is to invest in its stores. \u201cIf you close your eyes and think about your best experience at Bloomingdale\u2019s, you will never refer to that big, nice brown box delivered to the your front door. Never. You are going to refer to an experience in the store where you met someone you loved or found products you were not expecting to discover.\u201d<\/p>\n
\n\tEighty percent of Bloomingdale\u2019s digital sales originate from areas where there is a Bloomingdale\u2019s store, he said. \u201cInvesting in our stores is really reinforcing our digital business.\u201d<\/p>\n
\n\tRetailers can get obsessed about innovation, digital, data and AI. At Bloomingdale\u2019s, Bron said it\u2019s about \u201cinvesting in innovation, but without losing sight of our purpose, our DNA, and what is making the department store experience special.<\/p>\n
\n\t\u201cFor me, the best department store in the world is probably Le Bon March\u00e9 in Paris,\u201d he said. \u201cThey don\u2019t have digital. They are all in on the in-store experience.\u201d At times, Bon March\u00e9 removes merchandise for special events such as fashion shows.<\/p>\n
\n\t\u201cI\u2019m not saying [Bon March\u00e9\u2019s approach] is the right model for us. I\u2019m just saying they\u2019re an interesting source of inspiration. Data and digital technology can not be the only answer to the challenges we\u2019re facing. They support the strategy. They\u2019re helping us getting better at serving the customers the right way,\u201d but it has to be, he said, \u201cwithout losing the purpose and without losing the vision of who we are.<\/p>\n
\n\t\u201cWe\u2019re selling products that actually you don\u2019t need. So why would you buy another handbag? Why would you buy another you know shirt or skirt? Because it feels good. Because it\u2019s rewarding. It\u2019s good for your self-esteem,\u201d he said.<\/p>\n
\n\t\u201cWhen you close the door of Bloomingdale\u2019s behind you, you have to feel something different. It has to feel good. It\u2019s a lot about emotions.\u201d<\/p>\n
\t\t\t\t\tThe exterior of Bloomie\u2019s in Skokie, Ill.<\/p>\n
\t\t\t\t\t\t\t\t\tCourtesy of Bloomingdale\u2019s<\/p>\n
#Bloomingdales #CEO #Olivier #Bron #Retailer #Tick<\/p>\n","protected":false},"excerpt":{"rendered":"
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