The U.S. department store market is $187.4 billion in 2025, with approximately 30 businesses operating in the industry. Since 2010, department stores’ retail value has declined 44%, and the industry has undergone significant consolidation and transformation. Despite total retail sales in the United States hitting their highest-ever figure in 2023, sales in U.S. department stores fell to 132.7 billion dollars—a record low since 1992.
The sector is experiencing a pivotal moment of reinvention. There are new signs of life in the retail format, with growth this year at Macy’s, Bloomingdale’s, Dillard’s, Nordstrom, and Belk—and signs of stabilization at J.C. Penney and Kohl’s. In December 2024, the Nordstrom family announced a $6.25 billion deal to take Nordstrom private, while JCPenney and SPARC Group announced a merger in January 2025 to form Catalyst Brands, and Saks Global completed its $2.7 billion acquisition of Neiman Marcus Group.
Because of the scale of department stores and the ongoing industry transformation, brands must be strategic in their approach. The path that department stores are taking back into shoppers’ favor is a return to what made them popular in the first place: well-maintained and attractive spaces with attentive staff, a well-chosen selection of products, and enticing new brands. It’s important to create the right environment to introduce a brand into this channel. NPI has experience and knowledge of the department store sales model and can help your brand find its niche in an evolving retail landscape.
Contact the NPI team today to find out how we can help you be successful in Department Stores.