Everything must go: The popularity of online shopping will continue to hinder industry margins

The Department Stores industry in Texas has continued its long-term decline over the five years to 2017. The cause of the industry's decline is twofold: rising competition from e-commerce has siphoned consumer demand from the industry's brick-and-mortar stores, and previous major players like Wal-Mart Stores Inc. 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 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
$10bn
Annual Growth 12-17
-2.9%
Forecast Growth 17-22
Profit
Employment
57,738
Businesses
486

Industry Threats & Opportunities

  • The continued transition of department stores to supercenters will pressure industry revenue over the outlook period
  • Many industry players have shuttered establishments and laid off employees
  • Growing confidence in the security of online retailing sites will support the rise of e-commerce
  • Industry Report - Industry Products Chapter

    While this industry is segmented into two distinct types of operators (up-market department stores and their discount variety counterparts), both types of stores retail a wide assortment of general merchandise. IBISWorld categorizes industry products into five groups: apparel and footwear, drugs and cosmetics, home goods and appliances, toys and hobby goods and other products.Apparel and footwearThe industry predominantly sells men's, women's and children's clothing, shoes and accessories, with an estimated 48.8% of total sales generated from this product group. This product segment is relatively smaller in Texas compared with the United States a whole. Ove...purchase to read more.

    Additional Insights for the Department Stores in Texas Industry

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

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    What's in this report

    What is the Department Stores in Texas 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 Texas
  • 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 Texas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Department Stores in Texas 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
  • Other
  • Children's apparel and footwear
  • Toys and hobby goods
  • Nongrocery food items
  • Chart: Department Stores in Texas 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 over 65 years old
  • Chart: Major Market Segmentation for the Department Stores in Texas Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Depreciation
  • Marketing and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Department Stores in Texas

  • Basis of Competition
  • Internal competition
  • External competition

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

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

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

    The Department Stores in Texas industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

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

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