Reimagining the Luxury Department Store: Investigating the Millennial Luxury Consumer and the Luxury Department Store from a Systems Perspective

Millennial consumers tend to have a negative attitude towards luxury department stores despite their expressed preferences for luxury goods sold by these retailers. Therefore, identifying new sources of competitive advantage is critical for the luxury department store’s sustainability. Creating differentiation and attainment of target consumer groups like Millennials are key strategic suggestions for luxury department store retailers. Currently, no literature addresses Millennial luxury consumers, their connection with the disruptions in the retailing industry, and particularly with the luxury department store. Therefore, the authors propose a model to investigate the Millennial luxury consumer and the luxury department store from a systems theory perspective.