Von Maur embarks on a $100 million renovation plan to redefine its department stores for a new generation — and reinvest in the 152-year-old company’s signature customer service.
Von Maur is a classic American department store, currently embarking on an extensive, multi-phased renovation of its nearly 40 brick-and-mortar locations over the next five years. The 152-year-old retailer will invest more than $100 million to showcase an entirely new interior aesthetic, with renovations underway in Wichita, Kansas; Fort Wayne, Indiana; Omaha, Nebraska; Livonia, Michigan; Louisville, Kentucky; Overland Park, Kansas; and Forsyth, Illinois. But that’s not all — Dry Goods, a Von Maur subsidiary launched in 2010, will open five new stores this year, including its first in Delaware, New Jersey and Virginia. Once these new stores are open, Dry Goods will have 84 locations in 24 states. Shopping Center Business recently interviewed Melody Wright, chief operating officer of Von Maur, to see what’s next for the incomparable, ever-evolving, high-end department store known for its dedication to quality over quantity — and to the customer experience — for more than 150 years.
SCB: How many stores does Von Maur operate today? Please discuss the two that are opening soon in Pittsburgh and Fargo, North Dakota — are both of these new to their respective states?
Melody Wright: Currently, Von Maur has 37 department stores, with two more opening soon. This fall, we will open our first store in Pennsylvania at South Hills Village Mall in Pittsburgh, followed by our first store in North Dakota at West Acres Mall in Fargo in the spring of 2025. The reception to Von Maur in both locations has been exciting and we look forward to introducing shoppers in both locations to our wide selection of brand name merchandise and signature Von Maur service.
SCB: Von Maur is investing $100 million over the next five years to renovate its brick-and-mortar stores. Please tell us about the entirely new interior aesthetic that is planned.
Wright: As we have grown, our new stores have evolved to reflect the trends we see in today’s home design. Our renovation plans are designed to bring those same updates to our existing locations, including soft white and cream tones mixed with warm woods, and modern lighting. The new color palette does a better job of highlighting the unique mix of merchandise we carry.
SCB: With whom did you collaborate on the new design?
Wright: Shive Hattery provided the design renderings, but the inspiration was a collaborative process with blended ideas from numerous individuals within Von Maur.
SCB: When was the last time Von Maur, a true icon of the department store industry, underwent a substantial renovation like this?
Wright: This is the first time we have undergone a renovation of this size and scale. Previously, it was handled on a case-by-case basis. While we have always heavily invested in our facilities to keep them clean and welcoming, the new renovations modernize the stores to take us forward into the future.
SCB: Where is your e-commerce facility located, and when did that open? How much of your sales are online orders?
Wright: Opened in 2010, our e-commerce facility is based in Davenport, Iowa, where we are headquartered. Although it has grown into our largest store, it is a complement to our brick-and-mortar business.
SCB: Tell us about the Dry Goods boutique concept, which first opened in 2010 and plans to open five more stores this year. In 2023, you opened 11 new Dry Goods stores. There are now more Dry Goods locations (80+) than Von Maur…do you see it as diversifying the department store model you are known for? Reaching different generations of customers?
Wright: The name Dry Goods is a nod back to our founding in 1872 in a small dry goods store in Davenport, Iowa. We have steadily expanded our national footprint into what soon will be 84 locations in 24 states across the country. The Dry Goods target customer is younger and at the forefront of the latest trends. It has been a vehicle for growth for the company, given the lead time for a new Dry Goods store is measured in months versus years for a Von Maur store. Additionally, expanding in this manner allows us to learn about markets that may be a match for a full Von Maur location.
SCB: It’s not easy being a department store, especially coming off the pandemic years. What’s your company’s secret to success during a time when retailers were (and still are) being hit hard?
Wright: Our company started in 1872, so you can say we’ve seen a lot over the years. Two world wars, the Great Depression, financial recessions, pandemics and more. In the end, it comes down to never wavering in doing right by our customers. Our focus is simple: offer great merchandise, employ great people to assist customers and do it all in an outstanding environment. Along the way, we have built an incredible following of loyal customers who come back because they know that quality and service at Von Maur is a lot more than just words.
CB: Please describe your typical Von Maur and Dry Goods prototypes, including average square footage. In your upcoming Pittsburgh location for Von Maur, you are refurbishing an empty Sears store. Is this something Von Maur is on the lookout for, reusing dark properties of a similar size and footprint?
Wright: Our Von Maur stores range in size from 85,000 to 235,000 square feet, while Dry Goods stores range from 4,000 to 5,000 square feet. We are always looking for new opportunities, and certainly the redevelopment of dark stores is in the mix. In Pittsburgh, for example, the former Sears Store at South Hills Village was there for decades. We have heard from so many shoppers about their memories of that store and they can’t wait to see what it is becoming. I think they will be amazed by the transformation, and even more so by the products and service we are bringing to Pittsburgh.
SCB: Von Maur Department Store has been headquartered in downtown Davenport, Iowa, since 1872 and is still family owned and operated. Do you find this is a rare, unique model in the modern retail industry? What benefits do you see from this business model?
Wright: Staying privately owned is a strategic decision and one we don’t see changing. For four generations, a Von Maur family member has been at the helm of the company. Remaining family-owned is rare but it has been a cornerstone of our success. We make good decisions that benefit the business in the long term instead of being hyper focused on the next earnings report. There are no activist investors demanding immediate monetization, given those decisions are nearly always bad for the long term health of a business.
SCB: How has the pandemic affected how people shop and where their priorities are now? How has Von Maur/Dry Goods adapted to these changes?
Wright: We offered omnichannel shopping before it ever was really a thing, but the pandemic certainly helped accelerate that approach. Some people prefer to shop using their phones, but just as many like to browse the website and head to the store to get what they want — and along the way maybe see what else catches their eye. Digital and social are an important part of our business, but our in-person shopping experience remains the biggest driver of our success. To have an enjoyable experience, to be treated well — it might sound simple, but that is the real secret to our continued success.
SCB: What are your biggest operational and/or maintenance related challenges?
Wright: Our ambiance has always been part of our value proposition. We hear time and again how much our customers appreciate our layout, amenities and overall décor. We believe investing in our locations is an investment in our loyal shoppers, employees and communities we serve. But the size and scale of our $100 million renovation plan is huge for us.
SCB: Describe how your maintenance department is organized. Do you handle maintenance inhouse or outsource to third-party service providers?
Wright: Maintenance is handled in various ways. We have a team in place at the store level to handle day-to-day maintenance needs. At our corporate office, we have an operations team that helps facilitate maintenance requests, whether that is coordinating supplies or helping outsource to a third-party.
SCB: Does Von Maur and/or Dry Goods have any “green” initiatives in place or in the works, such as how they maintain their stores, lighting retrofits or other energy-related upgrades, sustainable materials used in construction, etc.?
Wright: We have a number of retrofits going on with lighting and HVAC to upgrade to more efficient technology. We seek out the latest advances to improve our efficiency for both new locations and existing ones. Central monitoring using sophisticated controls enables us to audit/review our ongoing efforts to reduce our usage.
— Katie Lee
This article was originally published in the October 2024 issue of Shopping Center Business magazine.