The Death of Department Stores and the Hidden Psychology of Shopping Modes

Department stores were once the center of retail.

Today, many feel like empty shells. Large spaces animated by the brands inside them rather than the store itself.

In this episode of Brandy, Reilly Newman and Scott Saunders explore the changing trajectory of retail through the lens of Kohl's and its recent earnings struggles.

But the most fascinating insight isn’t on the balance sheet.

It’s on the sales floor.

At many Kohl’s locations, the longest line in the store isn’t the checkout line... it’s the Amazon return counter.

Why?

Because those customers are operating in a very specific psychological state.

Return mode.

Reilly reintroduces the concept of “shopping modes”—the mental states consumers occupy when interacting with brands. Someone returning an item isn’t in browse mode or purchase mode. They’re trying to complete a task and leave.

Understanding this simple behavioral shift explains why foot traffic doesn’t always convert into sales.

In this episode, Reilly and Scott discuss:

• Why many department stores feel like “retail carcasses” animated by the brands inside them
• What Kohl’s trajectory reveals about the future of physical retail
• The psychology behind shopping modes and consumer intent
• Why Amazon return traffic doesn’t necessarily translate into purchases
• How founders and small businesses can identify the mode their audience is in and design experiences around it

Ultimately, great brands don’t just think about products.

They think about the mindset customers are in when they encounter them.

Have a brand marketing question?

Reilly & Scott will answer it on the next episode!

⁠⁠⁠>> Ask Here: https://forms.gle/S237AyoG1vj9Wfzj6

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