Department Stores in New Zealand - Industry Market Research Report

Department Stores in New Zealand - Industry Market Research Report

Department Stores in New Zealand

Department stores are one-stop shops and magnets for foot traffic, which is why the COVID-19 pandemic caused many challenges. Even before the outbreak, instore patronage was falling, encouraging many department stores to rationalise store networks and adopt a digitally-led approach. This allowed department stores to capitalise on online shopping during Alert Levels 3 and 4 while their shopfronts were temporarily closed. Retailers have increasingly integrated digital attributes consumers have grown fond of during lockdowns into their bricks-and-mortar operations – like instore pick-up and mobile loyalty programs – to ensure convenience as customers flock to stores in the pandemic's wake. Industry revenue has been growing at an annualised 3.7% over the five years through 2022-23, and is expected to total $6.6 billion in the current year when revenue will jump by an estimated 6.9%.

Department stores retail clothing, furniture, kitchenware, glassware, houseware, household appliances, soft goods, fabrics, perfumes, cosmetics and toiletries. These products are generally displayed and sold in separate instore departments. Firms source merchandise from wholesalers and manufacturers and then sell it to consumers through bricks-and-mortar stores or ecommerce sites. Pure-play online players are excluded from the 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.