Off the rack: Continued online retail growth is forecast to contribute to industry declines

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...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 12-17
-2.7%
Forecast Growth 17-22
Profit
Employment
50,010
Businesses
362
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Industry Threats & Opportunities

  • Online companies are increasingly undercutting traditional department store prices since they save on operational costs
  • Many operators are focusing more on e-commerce rather than their brick-and-mortar sales
  • Up-market retailers will target niche, luxury consumers with off-price retail establishments
  • Industry Report - Industry Locations Chapter

    In Illinois, the geographic spread for the Department Stores industry primarily follows trends in the overall population. For this reason, the industry is highly concentrated in Chicagoland and Northern Illinois. Chicagoland accounts of the state's largest share of industry establishments, with 50.3 % of locations, along with the industry's highest population concentration, with 58.8%. Chicago is recognized as a metropolitan hub in the Mid-West, which encourages industry operators to establish locations in the city.In 2017, IBISWorld estimates that Northern Illinois holds the second-largest share of industry establishments with 19.6% of locations and 16.0% of the state's population, while Western Illinois holds the third-largest concentration with 11.8% o...purchase to read more.

    Additional Insights for the Department Stores in Illinois Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Department Stores in Illinois 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 Illinois industry impact industry performance..

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    What is the Department Stores in Illinois 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 Illinois
  • Time spent on leisure and sports

  • Current Performance
  • Online competition
  • Store closures
  • Supercenter conversion
  • Chart: Revenue Growth

  • Industry Outlook
  • Conditions and competition
  • Industry structure
  • Bright spots
  • Table: Department Stores in Illinois Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Department Stores in Illinois 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
  • Women's apparel and footwear
  • Drugs and cosmetics
  • Home goods and appliances
  • Men's apparel and footwear
  • Children's apparel and footwear
  • Toys and hobby goods
  • Nongrocery food items
  • Other
  • Chart: Department Stores in Illinois Industry Products and Services Segmentation

  • Major Markets
  • Consumers aged 45 to 54
  • Consumers aged 35 to 44
  • 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 Illinois 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 Illinois

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Target Corporation JCPenney Company, IncNordstrom Inc.Sears Holdings CorporationMacy'sNeiman Marcus Group Inc.Wal-mart Stores Inc.
  • Table: Target Corporation - financial performance
  • Table: JCPenney Company, Inc - financial performance
  • Table: Nordstrom Inc. - financial performance
  • Table: Sears Holdings Corporation - financial performance
  • Table: Macy's - financial performance
  • Table: Neiman Marcus Group Inc. - financial performance
  • Table: Wal-mart Stores Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Department Stores in Illinois 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 Illinois Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income in Illinois (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.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Department Stores in Illinois 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 Illinois:
    • 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 Illinois 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 Illinois, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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