Department Stores Market Size, Share & Trends Analysis Report, By Product Type (Apparel And Accessories, FMCG, Hardline And Softline), By Region, And Segment Forecasts, 2022 - 2028

Department Stores Market Size, Share & Trends Analysis Report, By Product Type (Apparel And Accessories, FMCG, Hardline And Softline), By Region, And Segment Forecasts, 2022 - 2028

Department Stores Market Growth & Trends

The global department stores market size was estimated to reach USD 166.08 billion by 2028 and is expected to grow at a CAGR of 5.1% from 2022 to 2028, according to a new report by Grand View Research, Inc. The popularity of offering specified products by various retailers under the same roof eliminating the need to go to another store for different needs, which saves both time and energy for the customer is the major factor driving the growth of the market.

Department stores require a large amount of space for the storage of various goods. This factor along with the need for a huge amount of capital to start and manage such stores are the major factors restraining the market growth. Most of the key players operating in the department stores market are adopting expansion strategies to fulfill the growing needs and to capture maximum share globally.

The COVID-19 pandemic has negatively impacted the market. The global lockdown created a temporary shutdown in the physical stores which severely impacted the market growth. During the pandemic, the department stores around the world remain closed due to the continuous lockdown across the globe. In addition, except for pharmacies and groceries, all other department stores had seen a fall in physical footfall during the pandemic which impacted the overall revenue. Also, it was observed that the retail industry had seen a drop in their sales at around 20% from February to April which represents a huge drop of 89% in clothing and accessories stores and 45% in department stores.

The hardline and softline segment contributed to the global market revenue share of above 45% in 2021. The hardline and softline segment is mainly gaining popularity due to the rising trend among the new generation to have designer furniture and decorate their home, which are the major factors driving the segment growth. Moreover, organized products and growing demands for luxury home décor items by various vendors under one roof are further driving the growth of hardline and softline segment. Hence, the similar range of products offered by department stores provides convenience to the customers to directly choose from the stores, which is surging the market segment.

North America accounted for the largest market share of above 45% in 2021. The department stores in this region are expanding their business due to surging urbanization, thereby generating more revenue for the North American market. Moreover, the well-established key players operating in the market are contributing to the regional market boosting the market growth. Thus, contributing to more revenue generation in the region.

Department Stores Market Report Highlights

• Asia Pacific is projected to grow with the highest CAGR of 5.8% from 2022 to 2028. The growing digitization and urbanization, increasing disposable incomes, and lifestyle up-gradation particularly among the middle-class people are the major factor in the growth of the Indian retail sector
• The growing purchasing power of the middle-class population in this region is attributed to the upliftment of department stores, thus expected to drive the department stores market over the forecast period
• The apparel and accessories segment is likely to register the highest CAGR of 5.8% over the forecast period. In department stores, the organized sections of apparel and accessories are enabling customers to search for their products easily which is driving the segment growth
• In addition, the increasing spending on fashionable apparel and accessories by financially independent women across the globe is a key factor driving the growth of the market. Thus, the apparel and accessories segment is expected to grow at the highest CAGR over the forecast period.