MAKE-UP mogul Napoleon Perdis is a steadfast believer in the might and majesty of the department store model, it just needs a facelift to better serve the needs of younger and smarter shoppers and work at creating the kind of in-store events that the internet can't match.
The Australian fashion leader who has made it big in the US argues leading department stores such as David Jones and Myer need to let go of their uniformity strict formats to transform into a "mall" where brands are given the floor space to show off their artistry and design.
"I think there is a place for department stores but they need to think of themselves more as malls, where vendors can create experiences within that mall model," Mr Perdis said.
"The minute you start creating so much boundaries around department stores it loses creativity, and a department store has to be a melting pot of creativity and then the merchandise will sell."
He should know. From his first Napoleon Perdis store in Oxford St, Paddington in 1995, the cosmetics entrepreneur has built an empire to today have 75 company-owned concept stores and eight Napoleon Perdis Makeup Academy campuses in Australia and the US, and more than 4500 stockists and distributors in Australia, New Zealand and the US.
Napoleon Perdis is now in Target, Ulta, Dillard's and Nordstrom in America and a popular fixture of America's king home shopping network QVC.
Some of the pizazz Mr Perdis argues Australian department stores are in desperate need of was on show last week when he staged a lunchtime event at David Jones' flagship Sydney store in Elizabeth Street.
"There were a couple of thousand people on the floor watching, waiting for the entrance and I gave them a whole show," he said. "There was Madame Pompadour, there was Cleopatra, a slave, a naughty couple, a romantic couple, it was sexy, it was fashion.
"Eventing needs to be created in its true form where creativity is allowed to flow like in the days of the 1950s, '60s and '70s where there was enormous creativity inside department stores. Like Andy Warhol, who would do windows in Barneys, they would be show-stopping. These days they do windows and its all so 'where's the art?' "
Napoleon Perdis was lured to David Jones from Myer by the former DJs boss Mark McInnes and now sells exclusively in that store and has a range in Target and Big W.
"Australia for me is in growth mode, both in my prestige brand and my mass brand, but the reason for that is that I work really actively in creating that experience," Mr Perdis says.
He applauded the David Jones' boss, Paul Zahra, for his strategic plans to reinvigorate the store, invest in staff and online.
"There is still a place for retail distribution. She [the customer] still wants to go in and experiment and have it applied on herself. She can do some replenishment online but to look at newness etc, you can't do it all online," Mr Perdis said.
"The retailers or department stores that will be left out will be the ones that don't put the infrastructure in now and start pushing their marketing teams to better communicate.
"They have been caught up in sales war and that doesn't do anything, it kills business; it brings in a customer that may not necessarily be able to afford to come back to you."
Frequently Asked Questions about this Article…
What changes does Napoleon Perdis say department stores like David Jones and Myer need to survive?
Perdis argues department stores should stop being uniform and instead act more like malls — giving brands dedicated floor space, encouraging creativity and show-stopping in-store events, and letting vendors create experiences that the internet can’t replicate.
How can experiential retail and in-store events boost department store sales?
According to Perdis, events and creative presentations draw crowds and encourage customers to try new products in person. He cites a lunchtime show at David Jones that attracted thousands, demonstrating how memorable experiences can drive foot traffic and sales that online channels can’t easily replace.
Is there still a role for department stores in the age of online shopping?
Yes. Perdis says customers still want to visit stores to experiment and see newness — while online is useful for replenishment, in-store experiences remain important. But stores must invest in staff, online capabilities and experiential marketing to stay relevant.
What operational investments does Napoleon Perdis recommend for department store turnaround?
He recommends investing in staff training, online infrastructure, better marketing teams and overall store infrastructure to support creative merchandising and customer experiences rather than competing only on price.
Why does Napoleon Perdis warn against 'sales wars' for department stores?
Perdis warns that constant discounting attracts bargain shoppers who may not return and can damage long-term profitability — he says sales wars ‘kill business’ and erode the customer base.
Where is the Napoleon Perdis brand sold, and how does that reflect his retail strategy?
His business has 75 company-owned concept stores, eight Makeup Academy campuses and more than 4,500 stockists/distributors across Australia, New Zealand and the US. Internationally, Napoleon Perdis is stocked in Target, Ulta, Dillard’s and Nordstrom and appears on QVC; in Australia he now sells exclusively through David Jones while also having a range in Target and Big W — illustrating a mix of prestige partnerships and mass distribution.
How did Napoleon Perdis’s own experience influence his view on department stores?
Perdis built a cosmetics empire from a single store in Paddington to an international presence, so he draws on that retail experience. He says hands-on eventing and creative displays — like the show he staged at David Jones — are proven ways to engage customers and grow brands.
What should everyday investors look for when assessing department store turnaround plans?
Investors should watch for concrete plans to invest in staff and online systems, partnerships or exclusive brand deals (like Perdis’s arrangement with David Jones), a shift toward experiential retail and stronger marketing strategies — and a move away from constant discounting, which Perdis warns undermines profitability.
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