Department Stores in the US - Industry Market Research Report

Department Stores in the US - Industry Market Research Report

Department Stores in the US

The Department Stores industry has continued its long-term decline, with revenue falling in the period. The industry's decline has been accentuated by an estimated 17.6% drop in 2020 alone because of COVID-19 but was aided by the economy reopening in 2021, which resulted in the revenue growing 13.7% in that year alone. However, with rising inflationary pressures in 2022 and 2023 and the continually growing and competitive presence of e-commerce rivals, industry revenue is set to be more challenged in the current period. Another rising trend is the increasing number of major retailers that have expanded their product ranges to include groceries, which transitions their revenue to the Warehouse Clubs and Supercenters industry (IBISWorld report 45291), reducing industry participation. As a result, industry-wide revenue has decreased at a CAGR of 4.1% to $138.4 billion over the five years to 2023, including an estimated 2.6% decline in 2023 alone, when profit is projected to decrease to 4.2%.

Department stores retail a broad range of general merchandise, such as apparel, jewelry, cosmetics, home furnishings, general household products, toys, appliances and sporting goods. Discount department stores, which are also included in this industry, retail similar lines of goods at low prices. However, big-box retailers and supercenters that offer fresh groceries in their stores, in addition to warehouse clubs that operate under membership programs, are not included in this industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.