Market Navigator: US Department Stores—The Execution Reset; How Store-Level Excellence Will Define the Next Winners

Published – August 2026

Discover how US department stores are performing in the current environment of shifting economic conditions, Iran conflict and inflation pressures.

Read this report to discover answer to these questions:

• Understand how department stores are stabilizing selectively in 2026 through execution-led strategies.
• Learn which retailers are outperforming and why, including Macy’s, Dillard’s and Nordstrom.
• Examine store rationalization, digital and AI adoption, and category trends shaping department store performance.
• Explore how off-price retailers, luxury segments, and omnichannel integration are influencing market dynamics.
• Discover actionable insights for strategy, portfolio management, and growth in the department store sector.

Data in this research report include: Department store revenue and productivity, store footprint and closures, sales per store and per sq. ft., category breakdowns, consumer survey trends, digital adoption, and competitive landscape analysis.

Introduction

What We Think

• The Coresight Research View on the US Department Stores Sector

Themes We Are Watching

• Diverging Performance: Improving Mid-Tier Department Stores Versus Company-Specific Distress in Luxury
• Department Store Contraction vs. Off-Price Expansion: A Structural Share Shift
• Store Footprint Rationalization & Reimagined In‑Store Experiences
• Agentic AI Is Emerging as the Next Competitive Battleground in US Department Stores

The US Department Stores Sector

• Market Scale and Opportunity
• Segment Breakdown
• Market Factors
• Real GDP Growth
• Online Market

In-Store Shopper Visits

The Companies

• Competitive Landscape
• Store Metrics
• Retailers’ Store Traffic

Retail Innovators

The Consumer

Which Department Stores US Consumers Are Shopping From and What They Are Buying

Notes and Methodology

• Selected Sources and Further Reading

Appendix

Macy’s, Nordstrom, Kohl’s, Dillard’s, JCPenney, Belk, Saks Fifth Avenue, Neiman Marcus, Exemplar Luxury Group

Comparable Store Sales Growth for Select US Department Stores (YoY % Change)

Off-Price vs. Department Stores: Store Count and Growth Comparison

US Department Store Sector Size (Left Axis; USD Bil.) and YoY Change (Right Axis; %)

US Department Store Sector: Category Breakdowns (% of Total Sales, Top; Total Revenue in USD Bil., Bottom)

US: Consumer Price Index by Selected Expenditure Category, YoY % Change (Unadjusted)

Respondents Who Have Observed Inflation: How They Have Changed, or Expect To Change, Their Shopping Habits in Nongrocery as a Result (% of Respondents, Three-Month Rolling Average)

US: Real GDP YoY Growth (%)

US Department Stores Online Sector Sales (Left Axis; USD Bil.) and YoY Change (Right Axis; %)

US Department Stores E-Commerce Penetration (Online Sector Sales as % of Total Sales)

Department Store Sector-Level Shopper Visits To Stores: YoY % Change

US Major Department Stores’ Revenues, Ranked by 2025 Revenue (USD Bil.)

US Major Department Stores’ Share of Sector Sales (%)

US Major Department Stores’ Operating Margins (%)

Key Comparable Metrics of Selected US Department Stores (Ordered Alphabetically)

US: Selected Department Stores’ Store Numbers, Ranked by Revenue

US Major Department Store Retailers’ Total Sales Area (Sq. Ft. Mil.), Ranked by 2025 Revenues

US Major Department Stores’ Sales per Store (USD Mil.), Ranked by 2025 Revenues

US Major Department Stores’ Sales per Gross Sq. Ft. (USD), Ranked by 2025 Revenues

US Major Department Stores’ Store Traffic: YoY % Change

Retail Innovators Impacting the Department Store Sector

US Consumers: Whether They Purchased from Department Stores in the Past Three Months Ended June 29, 2026 (Left, % of Respondents) and How Much They Spent (Right, % of Respondents)

US Department Store Shoppers: Department Stores from Which They Have Purchased in the Three Months Ended June 29, 2026 (% of Respondents)

A Comparison of Department Stores from Which Consumers Have Purchased in The Past Five Quarters (% of Respondents)

US Department Store Shoppers: Product Categories from Which They Have Shopped In The Past Three Months Ended June 29, 2026 (% of Respondents)

A Comparison of Product Categories from Which Department Store Shoppers Have Purchased In The Past Five Quarters (% of Respondents)

US Department Store Shoppers: Reasons for Shopping at Department Stores Over Other Types of Retailers (% of Respondents)

US Department Store Shoppers: What Would Most Increase Consumers’ Likelihood to Visit Department Stores (% of Respondents)

Top Department Stores US Store Numbers