Global Department Stores Sales to Reach $424 Billion by 2015, According to New Report by Global Industry Analysts, Inc.

Share Article

Despite the current gloomy scenario, industry outlook for department stores remains positive, as players adopt new strategies to improve sales and counter competition. Growth is also expected to stem from expanding markets of Asia, Latin America and Middle East. By 2015, department store sales are projected to reach $424 billion.

Department Stores: A Global Strategic Business Report

Department stores sector that enjoyed a dominant role in the retailing sector during the past decades, is witnessing a loss in share in some of the major markets including the US, western Europe, and Japan. This is mainly due to threat from counterparts, the specialized retailers, discounters, and supermarkets, which are gradually encroaching its share. Besides this, the segment faces a deteriorating business environment in form of global economic slowdown, increasing credit crunch, and cuts in consumer discretionary purchases.

Developed regions of the world, US, Europe and Japan, dominate the global Department stores sector, as reported in a recent study published by Global Industry Analysts Inc. In the United States, consumer cut down on discretionary purchases, slowing mall traffic and falling market share continued to impact department stores in 2008, making it the worst performing division within the retail sector. Loss of sales in apparel segment, the largest generator of revenues, to other retailing formats is another factor affecting all department stores. Japan is expected to be the hardest hit with decline in sales stretching for the thirteenth consecutive year. A declining population comprises a major distinctive problem affecting the country's department store industry.

European department stores market is on the same track as other developed markets. The decline in sales is more profound in the western part. Factors affecting the department stores market include increasing competition from other retailing formats, economic slowdown and general consolidation in the industry.

Asia-Pacific and Latin America represent the fastest growing markets during the analysis period 2006-2015. Department stores in Asia-Pacific region have been until late on a fast expansion mode led by strong growth in China, and the rising value sales in other countries such as Australia, Singapore and South Korea. However, the region is expected to show moderate decline in growth due to general economic slowdown. Post 2009-2010, department stores in the region are expected to expand with a high growth rate, with China experiencing the fastest growth.

The department stores business is highly competitive with the presence of numerous players both large and small. Several factors affect the consumer's mindset that determines the choice of a store and the degree of loyalty. These include price, product mix and assortment, service, convenience, advertising, and availability of credit. As competition intensifies, strategies need to be adopted to attract customer footfalls, improve loyalty and enhance total dwelling time. Players profiled in the study include Arcandor AG, Arnotts Ltd, Beales PLC, Debenhams Plc, Dillard's, Inc., DWW Woolworth Germany GmbH & CO. Kg, El Corte Inglés SA, Fenwick, GALERIA Kaufhof GmbH, Groupe Galeries Lafayette, House of Fraser Ltd, JC Penney Company, Inc., John Lewis Plc, Macy's, Inc., Marks & Spencer Group Plc, Maxeda BV, Nordstrom, Inc., Saks Fifth Avenue, Sears, Roebuck & Company, Stockmann Plc, UPIM SpA.

The report titled "Department Stores: A Global Strategic Business Report" published by Global Industry Analysts, Inc., covers major market dynamics, trends, issues, and competition pertaining to the market. The report enumerates developments, mergers, acquisitions and other strategic industry activities in the recent past. Analysis is presented for the period 2006-2015 for established and emerging markets including - United States, Japan, Europe, France, Germany, Italy, UK, Asia-Pacific, Latin America, and Rest of World.

For more details about this research report, please visit http://www.strategyr.com/Department_Stores_Market_Report.asp.

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs more than 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of more than 60,000 smaller research products including company reports, market trend reports and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone 408-528-9966
Fax 408-528-9977
Email press (at) StrategyR (dot) com
Web Site http://www.StrategyR.com

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Public Relations
Visit website