Off the rack: Competition from e-commerce and the transition of department stores to supercenters will pressure industry revenue

The Department Stores industry has continued its long-term decline over the five years to 2017, caused primarily by rising competition from e-commerce and major players expanding their product range to include groceries. 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 New York City, 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. Online companies are increasingly undercutting traditional department store prices, since they save on operational costs...read more.

Industry Statistics & Market Size
Revenue
$12bn
Annual Growth 12-17
-1.6%
Forecast Growth 17-22
Profit
Employment
69,169
Businesses
347

Industry Threats & Opportunities

  • Department stores have lowered selling prices, offered promotional deals and strengthened their marketing to remain competitive
  • Operators have opted to focus more heavily on their e-commerce business than their brick-and-mortar sales
  • Online retailers achieve great cost savings through their operations
  • Industry Report - Industry SWOT Analysis Chapter

    ***This section is not used for US State reports.***Only set Reasons & Level!...purchase to read more.

    Additional Insights for the Department Stores in New York Industry

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

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Department Stores in New York 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 & Cosmetics
  • Men's clothing & footwear
  • Children's clothing & footwear
  • Toys and hobbies
  • Nongrocery food items
  • Women's clothing & footwear
  • Home goods & 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 New York
  • 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 New York Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Department Stores in New York 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 clothing & footwear
  • Home goods & appliances
  • Drugs & Cosmetics
  • Men's clothing & footwear
  • Children's clothing & footwear
  • Nongrocery food items
  • Toys and hobbies
  • Other
  • Chart: Department Stores in New York Industry Products and Services Segmentation

  • Major Markets
  • Consumer between 45 and 54
  • Consumer between 35 and 44
  • Consumer between 25 and 34
  • Consumer between 55 and 64
  • Consumers under 25
  • Consumers over 65
  • Chart: Major Market Segmentation for the Department Stores in New York 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 New York

  • Basis of Competition
  • Internal competition
  • External competition

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

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Department Stores in New York 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 New York Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income in New York (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 research report on Department Stores in New York contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    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 New York:
    • 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 New York 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 New York, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear