Scaling through smaller stores: Why retailers are doubling down on localization

What are the benefits to both brands & retailers?

How retailers benefit

Localization is how many retailers are growing in 2024. Nordstrom , for example, has New York and Los Angeles Nordstrom Local stores. This gives Nordstrom the opportunity to contextualize and hone in on NYC experiences – such as with December’s A Nordstrom NYC Holiday Experience VIP shopping event — and to build on their existing relationships with customers. 

How brands benefit

The opportunity to build new connections with local communities helps customers encounter brands in ways that feel a lot more personal. It can also be easier for customers to see themselves in the stories that they tell.

Wholesale relationships, localization, and brick-and-mortar experiences 

The future of department stores may rest in retailer-brand relationships and retailers’ ability to create memorable, meaningful experiences. While some stores are downshifting on in-store experiences in favor of investing fully in digital, retailers have the opportunity to become leaders.

Shoppers are validating the movement with their renewed interest in brick-and-mortar shopping, and, of course, fabulous, local experiences are an integral part of the origin story for the world’s greatest department stores. It is simply a return to the roots of retail.

Experience #1: Luxury fashion

Oscar de la Renta

Inside the store

The opportunity to build new connections with local communities helps customers encounter brands in ways that feel a lot more personal. It can also be easier for customers to see themselves in the stories that they tell.

Outside the store

The opportunity to build new connections with local communities helps customers encounter brands in ways that feel a lot more personal. It can also be easier for customers to see themselves in the stories that they tell.