The global department stores products market was valued at USD 351 billion in 2022 and is projected to expand at a CAGR of 5.3% from 2023 to 2030. Department store products are in high demand due to their ability to provide consumers with a wide variety of items, from clothing to hardware and electronics, in one convenient location. Furthermore, the rising trend of online shopping, particularly among young people, is driving the growth of the department stores products market.

In recent years, the department store industry has been rapidly shifting to digital channels, such as e-commerce, to meet the changing needs of customers. Department stores are launching their own e-commerce platforms to provide customers with a more convenient shopping experience. For instance, in March 2021, Macy’s launched a new e-commerce platform to enable customers to shop for fashion, beauty, home, and kids products in a single destination. This platform will enable the company to reach more customers and grow its online sales.

Moreover, department stores are increasingly offering exclusive brands to attract customers. For instance, in April 2021, Nordstrom launched a new exclusive brand, Good American, which offers modern apparel, accessories, and shoes for women of all sizes. Furthermore, department stores are introducing different payment options to make shopping more convenient for customers. For instance, in July 2021, Kohl’s launched a new payment option called Kohl’s Rewards and Kohl’s Cash, which allows customers to earn and redeem rewards with every purchase.

Furthermore, department stores are offering discounts and promotional deals to attract and retain customers. For instance, in August 2021, Macy’s launched a “Friends and Family” sale, offering customers 25% off on select items. This is expected to boost the demand for department stores products in the coming years. Additionally, the increasing number of luxury department stores, such as Neiman Marcus and Saks Fifth Avenue, is expected to fuel the growth of the market in the coming years.

The apparel segment is anticipated to show the highest CAGR of 5.3% over the forecast period. Growing demand for casual and formal wear, rising trends of fashion consciousness among consumers, and increasing number of department stores offering a wide range of apparel products are some of the major factors driving the demand for the segment. Furthermore, the introduction of innovative fabrics and rise in the disposable income of consumers across the world are also contributing to the market growth.

The home furnishing segment is anticipated to hold the second-largest market share in 2022 owing to the growing preference for home decor products such as curtains, cushions, and bedding. Additionally, the emergence of large department stores offering home furnishings and accessories is also driving the growth of the segment. Furthermore, the rising trend of DIY home decor and the increasing trend of online retailing are some of the major factors driving the growth of the home furnishing segment.

The department stores segment held a significant share of over 32% in 2022. These stores are the preferred choice of consumers for purchasing clothing and other lifestyle products, owing to their wide range of product categories and discounts. Department stores also offer a wide range of fashion and lifestyle products under one roof, allowing customers to compare prices, fabrics, designs, and styles of different clothing items. Moreover, the presence of skilled staff in these stores enables customers to avail personalized services and advice.

The online stores segment is expected to expand at a CAGR of 11.2% over the forecast period, owing to the rising trend of online shopping. The increasing use of smartphones and the availability of internet-enabled devices have led to a surge in the demand for online shopping. Online stores offer a wide range of lifestyle, fashion, and personal care products, with discounts and offers. Moreover, the presence of global brands and the convenience associated with online shopping are expected to drive the segment during the forecast period.

The apparel and footwear segment accounted for the largest revenue share of 35.7% in 2022. The growing trend of online shopping and the shift of consumers towards comfort and convenience is driving the demand for apparel and footwear from department stores. In addition, the increasing preference for branded and designer clothing, rising disposable income, and shifting consumer preferences towards the purchase of luxury items are driving the growth of the apparel and footwear segment. Furthermore, the growing demand for activewear and athleisure is also propelling the segment.

The home and furniture segment is anticipated to expand at a CAGR of 6.3% over the forecast period. The growing trend of online shopping and rising disposable income are driving the demand for home and furniture products from department stores. Additionally, the increasing number of working couples, rising disposable income, and the trend of home improvement are boosting the segment. Furthermore, the increasing preference for eco-friendly home and furniture products by consumers is expected to drive the segment in the forecast period.

North America accounted for the largest revenue share of over 43.7% in 2022. This can be attributed to the presence of major players in the region such as Walmart, Target, and Macy’s. Moreover, the increasing number of millennials in the region is expected to drive the demand for department stores products in the near future. For instance, in May 2021, Walmart launched a new online platform for furniture called ‘The Home’ in the U.S. to cater to the increasing demand from consumers.

Europe is expected to witness the second-fastest growth in the coming years. This can be attributed to the rising demand for department stores products from consumers. This can be attributed to the increasing need for convenience among consumers. For instance, in August 2021, Amazon launched a new store concept in London, which combines a physical store with online retailing to cater to the increasing demand from consumers. Moreover, the presence of major players such as Tesco and Carrefour is expected to further boost the market growth in the region.

In this part of the department store products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for the business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for a department store products business comes from the sale of products. This can include apparel, electronics, furniture, jewelry, beauty products, and any other items that department stores typically sell. You will also need to factor in additional sources of profit such as discounts, promotions, and loyalty programs.

Projecting Expenses
In this section, all the regular expenses related to keeping the department store products business running will be described. The list of operating expenses includes rent, wages, inventory costs, marketing, advertising, utilities, and insurance policies. Other expenses include the cost of goods sold, taxes, and any other miscellaneous expenses.

Some of the key companies operating in the department stores market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In June 2022, Macy’s launched a new line of clothing and accessories for men and women, as well as a new online shopping platform.

– In August 2022, Nordstrom launched a new line of accessories, including handbags, watches, jewelry, and sunglasses, as well as a new online store.

– In October 2022, JCPenney launched a new line of home goods and a new online store.

Some of the prominent players in the department stores market include:

– Macy’s Inc.
– Nordstrom Inc.
– J. C. Penney Corporation, Inc.
– Kohl’s Corporation
– Dillard’s, Inc.
– The TJX Companies, Inc.
– Ross Stores, Inc.
– Burlington Stores, Inc.
– Big Lots, Inc.
– Target Corporation

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global department stores products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Apparel
– Footwear
– Accessories
– Home & Kitchenware
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Departmental Stores
– Online
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Mass
– Premium

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Major Growth Drivers for Department Stores?
[A]: The rise of e-commerce and the increasing demand for convenience among consumers are the major growth drivers for the department stores market. The introduction of new technologies such as AI and Big Data analytics are also assisting in the growth of the market, as they enable retailers to provide personalized services and customized products to their customers. Furthermore, the growing trend of omni-channel retailing is also creating new opportunities for the department stores.

[Q]: Who are the Key Players in the Department Stores Market?
[A]: Key players in the department stores market include Walmart, Kohl’s, Macy’s, Target, JCPenney, Sears, and Nordstrom.

[Q]: What are the Key Trends in the Department Stores Market?
[A]: The major trends in the department stores market include the growth of e-commerce, the increasing demand for convenience, the emergence of omni-channel retailing, and the adoption of new technologies such as AI and Big Data analytics.

[Q]: What is the Potential for Growth in the Department Stores Market?
[A]: The department stores market is expected to experience significant growth over the forecast period, driven by the increasing demand for convenience and the emergence of new technologies. Furthermore, the increasing popularity of e-commerce and the rise of omni-channel retailing are also expected to boost the market’s growth.

[Q]: Which Region Offers the Largest Opportunity for Sales of Department Stores?
[A]: North America is expected to be the most lucrative region for department stores with an absolute dollar opportunity of $216.9 B (USD). This is mainly due to the presence of a large number of retail stores in the region and the increasing demand for convenience.