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Department Stores in the US Industry Data and Analysis
Department stores continue to contend with a shifting retail landscape, where newer, online retailers are able to quickly adapt to the latest trends and challenges. Industry revenue fell consistently between 2005 and 2020, before exhibiting modest gains in recent years. The recent uptick in revenue is a result of pandemic-related losses to begin the period in 2020, alongside favorable gains in sales because of investments in online platforms. Industry performance has been challenged by rising inflationary pressure since 2022 and the competitive presence of e-commerce rivals. Another rising trend is the increasing number of major retailers that have expanded their product ranges to include groceries, providing a heightened level of convenience. This transitions the revenue of these retailers to the Warehouse Clubs and Supercenters industry (IBISWorld report 45291), reducing industry participation. Revenue for department stores is expected to climb at a CAGR of 1.4% to $231.6 billion through the end of 2025, including a hike of 1.6% in 2025 alone, when profit will account for 3.7% of revenue.
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What's included in this industry analysis
IBISWorld's research coverage on the Department Stores industry in the United States includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released January 2026.
About this industry
What's this industry report about?
The Department Stores industry in the United States operates under the NAICS industry code 45211. Department stores retail a broad range of general merchandise, including apparel, jewelry, cosmetics, home furnishings, household products, toys, appliances and sporting goods. Discount department stores, which are also part of this industry, offer similar lines of goods at low prices. However, this industry does not include big-box retailers and supercenters that offer fresh groceries in their stores, as well as warehouse clubs that operate under membership programs. Related terms covered in the Department Stores industry in the United States include brick-and-mortar, big-box retailer, point-of-sale (pos), radio-frequency identification (rfid) and black friday.
What's included in this industry?
Products and services covered in Department Stores industry in the United States include Women's clothing and footwear, Men's clothing and footwear and Home goods and appliances.
What companies are included in this industry?
Companies covered in the Department Stores industry in the United States include Target Corp, Macy's, Inc. and Nordstrom, Inc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Department Stores industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Department Stores industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Department Stores industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Department Stores industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Department Stores industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Department Stores industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Department Stores industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Department Stores industry in the United States.
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Frequently Asked Questions
What is the market size of the Department Stores industry in the United States in 2026?
The market size of the Department Stores industry in the United States is $224.1bn in 2026.
How many businesses are there in the Department Stores industry in the United States in 2026?
There are 49 businesses in the Department Stores industry in the United States, which has grown at a CAGR of 8.2 % between 2021 and 2026.
How may import tariffs affect the Department Stores industry in the United States?
The Department Stores industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Department Stores industry in the United States?
The Department Stores industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Department Stores industry in the United States grown or declined over the past 5 years?
The market size of the Department Stores industry in the United States has been growing at a CAGR of 0.8 % between 2021 and 2026.
What is the forecast growth of the Department Stores industry in the United States over the next 5 years?
Over the next five years, the Department Stores industry in the United States is expected to decline.
What are the biggest companies in the Department Stores industry in the United States?
The biggest companies operating in the Department Stores industry in the United States are Target Corp, Macy's, Inc. and Nordstrom, Inc.
What does the Department Stores industry in the United States include?
Retailing apparel and accessories and Retailing appliances and home furnishings are part of the Department Stores industry in the United States.
Which companies have the highest market share in the Department Stores industry in the United States?
The company holding the most market share in the Department Stores industry in the United States is Target Corp.
How competitive is the Department Stores industry in the United States?
The level of competition is high and increasing in the Department Stores industry in the United States.
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