Department Stores in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS 45211Revenue
$208.9bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
716k
Businesses
36
Wages
$XX.Xbn
Department Stores in the US industry analysis
The Department Stores industry has continued its long-term decline, with revenue falling. The industry's decline has been accentuated by an estimated 3.3% drop in 2020 alone because of COVID-19 but was aided by the economy reopening in 2021, which resulted in the revenue growing 1.4% in that year alone. However, with rising inflationary pressures in 2022 and 2023 and the continually increasing 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 1.3% to $208.9 billion over the five years to 2023, including an estimated 0.5% decline in 2023 alone, when profit is projected to decrease to 4.2%.
Online companies are increasingly undercutting traditional department store prices to save on operational costs. The bricks-and-mortar stores in the industry incur higher operational costs than online-based businesses because they pay for high-traffic retail space and require sales associates. Retailers have lowered selling prices and offered increased promotional deals to better compete. Similarly, department stores have since launched their digital stores and integrated them into their operations. While these efforts have helped retain some customers, industry profit remains pressured because of inflationary pressures on the industry, resulting in retailers making more cost-cutting decisions, which has tempered declines in the period.
Increased competition from e-commerce businesses and the transition of department stores to supercenters will continue to pressure industry revenue. As a result, some department stores will shutter more locations. However, disposable income growth will help lessen these factors' blow on future revenue. Overall, industry revenue is expected to decrease at a CAGR of 0.9% to $199.6 billion over the five years to 2028.
Trends and Insights
- Retailers like Target are becoming supercenters by expanding their product offerings to include groceries. This pressures the department stores, which historically maintained a steady share of the shopping industry.
- There are two types of operators in the Department Stores industry, up-market department stores and their discount variety counterparts. Both retail a wide assortment of general merchandise.
- The geographic distribution of department stores follows population trends. The Southeast, Great Lakes, Mid-Atlantic and West regions hold large shares of the US population and industry establishments.
- Price is the most influential basis of competition within this industry. Consumers are generally price-conscious and compare shop to find what they consider a bargain.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 1.3 % over the past five years, to reach an estimated $208.9bn in 2023.
Trends and Insights
Department stores are battling online competition to stay afloat
- The industry has lost revenue in recent years because of the increasing prevalence of online shopping from retailers like Amazon.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Profitability struggles as discount department stores capture more market share
- Profit will drop as department stores continue to slash their prices to attract customers who have continually turned their attention to rival stores and services.
Biggest companies in the Department Stores in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Target Corp | 92,014.4 | 7,672.6 | 8.3 | |
Macy's, Inc. | 12,482.4 | 932.0 | 7.5 | |
J.C. Penney Company Inc. | 11,167.0 | -268.0 | -2.4 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Women's clothing and footwear, Men's clothing and footwear and Home goods and appliances. Women's clothing and footwear is the largest segment of the Department Stores in the US.
Trends and Insights
Apparel and footwear account for the industry's largest market share
- The apparel and footwear segment includes men's, women's and children's clothing, shoes and accessories.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Warehouse Clubs & Supercenters in the US
- Dollar & Variety Stores in the US
- E-Commerce & Online Auctions in the US
- Mail Order in the US
Complementors
- Supermarkets & Grocery Stores in the US
International industries
- Department Stores in Canada
- Clothing Retailing in New Zealand
- Formal Menswear Retailers in the UK
- Cosmetics Retailers in the UK
- Department Stores in Mexico
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Retailing apparel and accessoriesRetailing appliances and home furnishingsRetailing toys and sporting goodsRetailing other general merchandiseCompanies
Target CorpMacy's, Inc.J.C. Penney Company Inc.Purchase this report to view all 5 major companies in this industry.
Related Terms
BRICK-AND-MORTARBIG-BOX RETAILERPOINT-OF-SALE (POS)RADIO-FREQUENCY IDENTIFICATION (RFID)BLACK FRIDAYIndustry Code
NAICS 452210 - Department Stores in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Retailers like Target are becoming supercenters by expanding their product offerings to include groceries. This pressures the department stores, which historically maintained...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
There are two types of operators in the Department Stores industry, up-market department stores and their discount variety counterparts. Both retail a wide assortment of gene...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The geographic distribution of department stores follows population trends. The Southeast, Great Lakes, Mid-Atlantic and West regions hold large shares of the US population a...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Price is the most influential basis of competition within this industry. Consumers are generally price-conscious and compare shop to find what they consider a bargain.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Discount giants like Target have transformed their traditional department stores into supercenters by adding grocery sections to their locations to aggressively increase their...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Target Corp's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Macy's, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of J.C. Penney Company Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Target Corp, and factors influencing its performance in the industry
- Description and key data for Macy's, Inc., and factors influencing its performance in the industry
- Description and key data for J.C. Penney Company Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Individual states generally cover regulations relevant to the Department Stores industry. Congress and states enact trade regulations to maintain a free and competitive econo...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Most department store costs are similar but can differ between companies of different operating sizes and specialties. Larger retailers benefit from economies of scale, gener...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Department Stores in the US industry in United States in 2024?
The market size of the Department Stores in the US industry in United States is $208.9bn in 2024.
How many businesses are there in the Department Stores in the US industry in 2023?
There are 36 businesses in the Department Stores in the US industry in United States, which has declined at a CAGR of 9.4 % between 2018 and 2023.
Has the Department Stores in the US industry in United States grown or declined over the past 5 years?
The market size of the Department Stores in the US industry in United States has been declining at a CAGR of 1.3 % between 2018 and 2023.
What is the forecast growth of the Department Stores in the US industry in United States over the next 5 years?
Over the next five years, the Department Stores in the US industry in United States is expected to decline.
What are the biggest companies in the Department Stores in the US market in United States?
The biggest companies operating in the Department Stores market in United States are Target Corp, Macy's, Inc. and J.C. Penney Company Inc.
What does the Department Stores in the US in United States include?
Retailing apparel and accessories and Retailing appliances and home furnishings are part of the Department Stores in the US industry.
Which companies have the highest market share in the Department Stores in the US in United States?
The company holding the most market share in United States is Target Corp.
How competitive is the Department Stores in the US industry in United States?
The level of competition is high and increasing in the Department Stores in the US industry in United States.
