Disheartened departments: The increased prevalence of online retailers will cause revenue to contract

Over the five years to 2017, the Department Stores industry in California has declined. The industry's decline is primarily the result of two factors. First, growing competition from e-tailers has captured sales from the brick-and-mortar stores that operate in this industry. Additionally, major companies have increased the scope of their products to include fresh groceries, which shifts their sales to the Warehouse Clubs and Supercenters industry. To compete against threating industries, department stores have decreased prices, offered promotions and invested significantly in advertising. Nonetheless, the industry is expected to continue declining over the five years to 2022, as industry demand falls and establishments continue to close...read more.

Industry Statistics & Market Size
Revenue
$25bn
Annual Growth 12-17
-3.9%
Forecast Growth 17-22
Profit
Employment
145,403
Businesses
833

Industry Threats & Opportunities

  • Growing competition from e-tailers has captured sales from the brick-and-mortar stores that operate in this industry
  • Several companies have closed stores and decreased their employment levels
  • Rising confidence in online security will encourage consumers to shop online
  • Industry Report - Industry Locations Chapter

    In California, the geographic spread for the Department Stores industry in California primarily follows trends in the overall population. For this reason, the industry is highly concentrated in Los Angeles County and the San Francisco Bay Area. Los Angeles County accounts for the largest share of industry establishments, with 21.0% of locations, along with the industry's highest population concentration, with 25.8%. Los Angeles is considered a fashion capital in the United States and is a very popular tourist destination. As a result, visitors are likely to splurge at the high-value department stores located in popular fashion areas like Rodeo Drive, which benefits industry operators that are located in this region...purchase to read more.

    Additional Insights for the Department Stores in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Department Stores in California Industry are

  • Ability to control stock on hand
  • Experienced work force
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as Percentage of services conducted online and Import penetration into the manufacturing sector in the Department Stores in California industry impact industry performance..

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    What's in this report

    What is the Department Stores in California Industry?

    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.

    Industry Products
  • Drugs and cosmetics
  • Men's apparel and footwear
  • Children's apparel and footwear
  • Toys and hobby goods
  • Nongrocery food items
  • Women's apparel and footwear
  • Home goods and appliances
  • Industry Activities
  • Retailing apparel and accessories
  • Retailing appliances and home furnishings
  • Retailing toys and sporting goods
  • Retailing other general merchandise
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Percentage of services conducted online
  • Import penetration into the manufacturing sector
  • Per Capita Disposable Income in California
  • Time spent on leisure and sports

  • Current Performance
  • Online growth
  • Establishment closings
  • Conversion to supercenters
  • Chart: Revenue Growth

  • Industry Outlook
  • Mounting competition
  • Contractions and structure
  • Looking up
  • Table: Department Stores in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Department Stores in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Ceramics Manufacturing
  • Footwear Wholesaling
  • Hardware Manufacturing
  • Household Furniture Manufacturing
  • Major Household Appliance Manufacturing
  • Manufacturing
  • Men's & Boys' Apparel Wholesaling
  • Shoe & Footwear Manufacturing
  • Vacuum, Fan & Small Household Appliance Manufacturing
  • Women's & Children's Apparel Wholesaling

  • Products & Services
  • Drugs and cosmetics
  • Women's apparel and footwear
  • Home goods and appliances
  • Other
  • Toys and hobby goods
  • Men's apparel and footwear
  • Children's apparel and footwear
  • Nongrocery food items
  • Chart: Department Stores in California Industry Products and Services Segmentation

  • Major Markets
  • Consumers aged 35 to 54
  • Consumers aged 25 to 34
  • Consumers aged 55 to 64
  • Consumers under 25 years old
  • Consumers aged 65 and older
  • Chart: Major Market Segmentation for the Department Stores in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciationMarketing and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Department Stores in California

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Department Stores in California Industry

  • Target Corporation, Macy's Inc., Nordstrom Inc., Sears Holdings Corporation, Wal-Mart Stores Inc., J.C. Penney Company Inc., Neiman Marcus Group Inc.,
  • Table: Target Corporation - financial performance
  • Table: Macy's Inc. - financial performance
  • Table: Nordstrom Inc. - financial performance
  • Table: Sears Holdings Corporation - financial performance
  • Table: Wal-Mart Stores Inc. - financial performance
  • Table: J.C. Penney Company Inc. - financial performance
  • Table: Neiman Marcus Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Department Stores in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Department Stores in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big-Box Retailer
  • A relatively new store format characterized by its large size. These stores sell similar merchandise as department stores, but also include grocery items. Also referred to as supercenters.
  • Black Friday
  • The day following Thanksgiving Day in the United States. It traditionally marks the beginning of the Christmas shopping season and thus many retailers host sales with heavy discounts.
  • Brick-And-Mortar
  • A store that has a physical presence and location, as opposed to an online retailer.
  • Point-Of-Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Department Stores in California is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Department Stores in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Department Stores in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Department Stores in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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