Department Stores in Illinois
The Department Stores industry has continued its long-term decline over the five years to 2017, with revenue expected to fall over the period. The cause of the industry's decline is twofold: rising competition from e-commerce has siphoned consumer demand from the industry brick-and-mortar stores, and major players like Walmart have expanded their product range to include groceries, which transitions their revenue to the Warehouse Clubs and Supercenters industry (IBISWorld report 45291). The brick-and-mortar stores that operate in the industry incur higher operational costs than online-based businesses because they pay for high-traffic retail space and require sales associates. Retailers in Chicago, especially, incur extremely high rental costs, and players that operate stores in the city are forced to either increase their selling prices to reflect the expense or suffer low profit margins. Over the five years to 2022, increased competition from e-commerce businesses and the continued transition of department stores to supercenters will pressure industry revenue. Furthermore, store closures, such as the three Illinois-based Macy's stores that are set to close in the coming years, will decrease revenue, establishment and employment figures. As a result, IBISWorld expects that industry revenue will continue to decline.
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 and warehouse clubs that operate under membership programs are not included in this 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.
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