What: US department stores saw their e-commerce sales decrease as customers are returning to stores to shop.

Why it is important: Is it all bad news? Coresight seems to focus at the top line without considering the overall department stores’ bottom line.

Coresight explores the US department store sector’s recent online performance and future e-commerce prospects, as well as the strategies that major players Kohl’s, Macy’s and Nordstrom are implementing in the online space.

Overall, e-commerce in department stores declined by -4.8% between 2021 and 2022 but is expected to grow +3.5% in 2023, to reach $28.3bn. The top three department stores—Kohl’s, Macy’s and Nordstrom—achieved combined e-commerce revenue of $21.2 billion in fiscal 2021, representing 5.2% year over year growth. The three major department stores represented 74% of e-commerce sales across the department store sector.

Department stores are investing in optimizing the supply chain, virtual selling, marketplaces and making sales through third-party sellers as well as offering self-sufficient customer experiences.

In the future, there will not necessarily be a designation of online versus in-store, as consumers discover products online and make purchases in-store. Coresight expects that retailers will make deep investments in personalization to ensure that each consumer’s product assortment is geared toward their preferences and purchasing behavior.

US: digital sales slow as customers shop in department stores