"These are just two of many obituaries predicting the imminent demise of the U.S. department store-and all that pessimism has been backed by the data. Department stores have been losing market share for decades, first to big-box discounters like Walmart and Target in the 1980's and 90's, and more recently to Amazon. The department store's percentage of total U.S. retail sales has fallen from about 14% in 1993 to only 2.6% last year."
"But now, perhaps improbably, there are new signs of life in the retail format, with growth this year at Macy's, Bloomingdale's, Dillard's, Nordstrom, and Belk-and signs of stabilization at J.C. Penney and Kohl's. The path that department stores are taking back into shoppers' favor is a return to what made them popular in the first place: well-maintained and attractive spaces with attentive staff, a well-chosen selection of products, and enticing new brands."
Department stores experienced a long-term decline in market share, falling from about 14% of U.S. retail sales in 1993 to roughly 2.6% recently. The loss occurred first to big-box discounters like Walmart and Target and later to Amazon. Many stores cut costs and standards to compete on price, eroding the appeal of the format. Some major chains are now showing growth or stabilization. Strategies include reducing the number of locations, improving store maintenance and staff service, curating product assortments, and introducing enticing brands to create distinctive in-person value versus lower-priced online options.
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