L2 released an animated video this week with the Digital IQ Index: Department Stores. The video shows department stores are far from dead, despite doomsday warnings. The category is expected to grow 22% in the next five years, and China will account for about half of the $100 billion incremental spend.

Here is what department stores are doing right:

– Half of the brands in L2’s Department Stores Index offer click-and-collect, or the option of picking up online purchases in-store. That is a 17% increase from last year. Likewise, 68% allow in-store returns of online purchases.

– 79% of brands in the Index provide a mobile site experience, and 44% of mobile optimized sites accept PayPal.

– 77% of department stores maintain at least one iOS application, and a quarter of those have a barcode scanner.

A few things they could improve:

– Just 18% of mobile sites are available in multiple languages.

– Only 13% of Index brands host a tablet-optimized site.

–  Less than a quarter of brands provide in-store store inventory access in real time.

For a full assessment of 56 iconic global department store brands, download L2’s 2014 Department Stores report.

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