U.S. Department Stores- Statistics & Facts

2021, a year of recovery for department stores?

2020 was a challenging year for retail, and department stores were heavily affected. United States department stores reached their lowest sales in years. Estimates calculate that as of the end of the year, sales amounted to 112 billion U.S. dollars, a decrease of nearly 17 percent in comparison to 2019. Retailers such as JC Penney, Stein Mart, and Neiman Marcus filed for bankruptcy and closed over 500 stores all together by the third quarter of the year.
Other major department stores also struggled, for example Macy’s sales plummeted by nearly 30 percent, and the company generated a net loss of nearly four billion U.S. dollars. However, 2021 saw a huge recovery in some of the leading department stores' net income. Macy's, Kohl's, and Dillard's achieved their highest net income totals for many years.

Shifting department store strategies

Retailers will be hoping that these improved figures translate into sustainable growth, rather than a short-term bounce-back from COVID-19. However, there must be a shift of strategies to halt the deterioration that has been haunting department stores over the last decade. Changing the store location from shopping centers to smaller branches or open-air malls, redesigning stores to work as showrooms, and, undoubtedly, creating a seamless omnichannel strategy, are some of the approaches department store retailers can and are undertaking in hope of resurgence. Other strategies include curating the product range, allowing click and collect, showcasing brands available exclusively online, and having a selection of second-hand items.

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