Department Stores in the UK - Industry Market Research Report

Better sales: Industry revenue is expected to rise in 2023-24 despite falling disposable incomes

Department stores face tough competition on all fronts from supermarkets, online-only retailers and specialist stores, which offer lower prices, broader ranges and greater convenience for consumers. Many department stores have ceased trading because of the challenging retail landscape, with the most notable industry exit being Debenhams in 2021. Weak real household disposable income growth has dented the prospects for department stores that rely so heavily on middle- and high-income families. The COVID-19 pandemic accelerated the high streets' demise, with department stores unable to operate for weeks on end during lockdown periods. Footfall figures remain still far below their pre-pandemic heights. Over the five years through 2023-24, department stores' revenue is forecast to contract at a compound annual rate of 2.7% to £35.6 billion, despite growth of 0.7% in 2023-24.

Department stores retail a wide range of general merchandise, including clothing, household appliances, toys, games, personal-care products and garden equipment. Non-specialised stores that primarily sell food are classified as supermarkets and are not included in the industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.