The US Department Stores (Except Discount Department Stores) market has seen a consistent decline in sales from 2013 to 2023, with the value in 2023 at $37.09 billion. From 2019 to 2023, the market experienced an average annual decline of 4.19%, significantly impacted by a substantial drop in 2020 and a slight recovery in 2021. In 2023, sales dropped again by 4.88% compared to the previous year. Forecasts predict a continued downward trend with a five-year CAGR of -4.96%, estimating sales to decrease by 22.47% by 2028.
Future trends to watch for include the impact of increased e-commerce penetration, evolving consumer preferences towards omnichannel retail strategies, and potential economic factors influencing discretionary spending. The ability of department stores to innovate and adapt to digital transformations will be critical in managing the forecasted decline.
