Market Outlook 16 minutes PremiumSector Overview: US Department Stores — Off-Price Formats and Marketplaces are Winning (and Millennials are Shopping Department Stores) Coresight Research February 18, 2019 Executive SummaryEach of our Sector Overview reports provides an essential briefing on a sector or market. In this report, we review the U.S. department-store sector. In 2018, sales made through U.S. department stores totaled $76.2 billion according to Euromonitor International. In-store sector sales are forecast to decrease at a compound annual growth rate of 5.8% to 2023, reaching $56.6 billion. Department stores are expanding off-price businesses with the hope of attracting customers to full-price merchandise, too. Nordstrom reported that 6.5 million new customers came to Nordstrom through its off-price business in 2018 and one-third of those customers become full-price customers. Department stores are pairing up with unique partners including Aldi and Amazon to drive traffic. Department stores are popular among millennials aged 25–34: According to Prosper Insights & Analytics, 47.8% of millennials shopped at a department store over Thanksgiving weekend, 2018 — a higher proportion than was recorded for any other age group. We predict department stores will adopt smaller formats, continue to rightsize and collaborate with unique partners. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for Other research you may be interested in: March 2023 Monthly Consumer Update: US, UK and ChinaShoptalk Europe 2024 Startup Pitch Competition: Preview—12 Innovators, Four Areas of Retail DisruptionAvoidance Stabilizes: China Consumer TrackerRetail 2024 Sector Outlooks: Ebook