Department stores have become a synonym for slow decline, with Saks, Sears, Barneys and JCPenney all folding. This week Mike Ashley bought luxury Knightsbridge retailer Harvey Nichols, whose costs rose 10% and sales fell 20% since 2019, leaving it unprofitable. Ashley plans to cut costs, fill space with his own labels and leverage stakes in Burberry and Hugo Boss.

The deal hints that department stores may still reinvent themselves. They can offer floor space to smaller brands shut out of pricey bricks‑and‑mortar — as Nordstrom did with Skims — and host services impossible online: tailoring, personal styling, cooking schools, repair workshops and restaurants. Those services create extra revenue and cross‑sell opportunities.

John Lewis shows the model working: personal‑styling and nursery appointments rose about 20% last year, cafés and restaurants now account for over one‑in‑five in‑store transactions, and revenue (ex‑Waitrose) grew for the first time since 2021, albeit at a thin 1.6% operating margin. While services won't restore the golden age, younger shoppers reviving 1990s trends may give these grand institutions a new reason to attract footfall.