THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Global department store spend to rise by $100 billion by 2019: new study

The global department store market will grow by 22.2% in the five years to 2019, according to a new study.

GENERAL MERCHANDISE

Global department store spend to rise by $100 billion by 2019: new study

The global department store market will grow by 22.2% in the five years to 2019, according to a new study.

Verdict’s Global Department Store Retailing report is predicting that the market will be boosted by a 38.1% rise in spend in China which will account for almost half of the $100 billion incremental spend. Furthermore, 30% of all department store sales are expected to be made in China by 2019 as a result of rising affluence, increasing urbanisation and expansion opportunities for both domestic and overseas players.

Kate Ormrod, analyst at Verdict, explained: “There are extensive growth opportunities in China; however, as overheads such as labour costs rise, we expect less profitable and weaker players to fall out of the market. Remaining players must further differentiate their offers through greater use of private label ranges, investment in in-store environment and brand exclusives to drive footfall and sales.”

While retailers operating in China and across South East Asia significantly increased their market shares in the last five years, Verdict found that the shares of the leading global department stores had weakened.

While US chain Sears saw its global market share decline by 2.5%, JC Penney’s almost halved to 2.4% due to a change in pricing structure and a proposition revamp.

However, Nordstrom and Macy’s both increased their shares of the global market - the only two to do so in Verdict’s list of top 12 department store chains.

Ormrod added: “Since overtaking Sears’ top position in 2012, Macy’s has increased its lead over its rival and is forecast to reach a 6.4% share in 2014, and while it has not been without its challenges, Macy’s product offer and store environment have been central to its success. Nordstrom’s continued investment in innovation and its decision to embrace multichannel has secured market share growth, and we expect it to remain a strong force in the US market in the coming five years.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019