Global Department Stores Retailing, 2017-2022
Global retail sales through the department stores channel is projected to register a CAGR of 5.3% over the forecast period 2017-2022 to reach US$614.9 billion by in 2022. This level of growth is underperforming the wider retail market, with the department store channel share set to decline, reflecting the slowdown in West Europe and North America. However, increasing income levels in growth markets combined with rapid urbanization and rising demands from consumers to buy quality products is expected to support the channel and offset the performance in more mature markets. Many retailers, especially those trying to protect share in more saturated markets, have incorporated artificial intelligence and other digital advances such as personalization into their operations to understand customer preferences, tailor ranges and improve their proposition and marketing.
While the US remains the largest single department stores market, sales in the North America region are forecast to decline with a CAGR of -0.8% over the forecast period 2017-2022. However, total regional sales for the Americas will grow at a modest CAGR of 1.4% over 2017-2022 to reach US$168.7 billion by 2022, due to Latin American countries such as Brazil and Chile which are projected to register healthy growth in sales against the backdrop of retailers expanding their footprint and increasing consumer confidence. MEA is projected to be the fastest growing region for department stores sales, due to a favorable economic growth scenario, booming tourism, and increasing investment by government in augmenting shopping infrastructure in the region.
Department stores across the globe are adopting advanced technologies to increase footfall and enhance shopping experience of customers. To combat fierce competition from online retailers, department stores are integrating online and offline channels. Department stores are incorporating augmented reality technology in their stores to tap into tech savvy customers who demand a seamless shopping experience
Responding to rapidly changing shopping preferences and to stay relevant in an increasingly competitive market, department stores are reducing the size of their store portfolios. Increasing online penetration has reduced footfall and sales at physical stores, impacting profitability and sales densities. Retailers including Macy’s, House of Fraser, JC Penney, Debenhams, and Sears are closing stores. Kohl’s has opened smaller format stores to reach out to untapped locations, while the likes of Debenhams continue to lease excess space to third parties.
The Global Department Stores Retailing, 2017-2022, report provides analysis of current and forecast market data for department store retail sales globally.
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