What: Coresight Research explores the US department store sector in the post-pandemic retail environment, providing also some insight on their dynamic.

Why it is important: The US department store sector will reach USD 81.7 billion in 2023, a 6.1% year-over-year decline, reflecting continued post-pandemic challenges and structural changes, including increased competition from online-only rivals and brands selling directly to consumers.

To stay competitive in the evolving retail landscape, department stores must transform and begin addressing consumers’ shifting needs and expectations via a wide variety of strategies, including forming strategic partnerships, adjusting store formats and introducing private-label offerings. Engaging consumers through social and live commerce trends will also be crucial moving forward, as will be integrating technology and experiential retail into all shopping experiences. Sustainability and inclusivity are additional important trends department stores should embrace, particularly focusing on resale, adaptive apparel, gender-free products and extended sizing options.

Department stores looking to expand their offerings and reach should embrace innovative strategies, such as marketplace and dropship models, and venture into the realm of retail media. Finally, integrating emerging technologies across all operations and creating immersive virtual experiences will redefine customer engagement and enhance the omnichannel experiences department stores provide, providing a path forward.

The report also includes some very detailed company profiles for a few key players such as Kohl’s, Macy’s and Nordstrom.

The state of US department stores