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. This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: China Retail Unveiled: In-Depth Insights Presented at FIRA 2024 Annual Meeting3Q23 US Retail Inventory Insights: Positive Factors Pave the Way for Better Inventory Turnover in the Holiday QuarterUS Store Tracker Extra, September 2023: Retailers To Close 73 Million Square Feet of Retail Space in 2023Analyst Corner: A Definitive Guide to US Drugstore Retail with Aditya Kaushik