Department Stores Retailing Market Global Report 2026

The department stores retailing market size has grown strongly in recent years. It will grow from $381.54 billion in 2025 to $410.71 billion in 2026 at a compound annual growth rate (CAGR) of 7.6%. The growth during the historic period was driven by increasing consumer spending on fashion and lifestyle products, expansion of urban retail infrastructure, growing preference for one-stop shopping destinations, rising disposable income among middle-class consumers, and increasing brand availability through organized retail networks.

The department stores retailing market size is expected to see strong growth in the next few years. It will grow to $542.78 billion in 2030 at a compound annual growth rate (CAGR) of 7.2%. The growth during the forecast period is attributed to growing adoption of personalized retail experiences, rising demand for seamless online and offline shopping integration, increasing focus on sustainable merchandise offerings, growing implementation of advanced customer analytics, and expanding premium retail and luxury product segments. Major trends in the forecast period include growing adoption of omnichannel retailing strategies, increasing integration of personalized shopping experiences, rising demand for private-label and exclusive merchandise, growing focus on customer loyalty and membership programs, and increasing expansion of premium and luxury retail offerings.

The rising number of retail stores is expected to drive the growth of the department stores retailing market in the coming years. Retail stores are physical or online establishments that sell goods directly to end consumers for personal or household use, offering a broad range of products through multiple sales channels. The increase in the number of retail stores is driven by growing consumer demand, as rising demand for products and services encourages retailers to establish additional stores to meet customer needs. The growing number of retail stores supports department stores retailing by improving consumer access to a wider selection of products and creating greater sales opportunities across various merchandise categories. For example, in January 2024, according to the National Association of Convenience Stores, a US-based trade association, the number of convenience stores operating in the United States reached 152,396 in 2024, representing a 1.5% increase compared to the previous year's total. Therefore, the rising number of retail stores is driving the growth of the department stores retailing market.

Major companies operating in the department stores retailing market are focusing on developing innovative solutions, such as AI-powered shopping chatbots, to strengthen customer engagement, enhance shopping convenience, and deliver personalized real-time retail information. AI-powered shopping chatbots are conversational digital assistants that leverage natural language processing and real-time data integration to provide information on store locations, operating hours, promotions, discounts, and product-related inquiries, offering a more interactive and personalized alternative to conventional customer service channels and static store information pages. For example, in December 2025, Lotte Shopping Co. Ltd., a South Korea-based department store operator, introduced Dustin, an AI shopping chatbot integrated into the Lotte Department Store application. Built on Amazon Bedrock, the chatbot interprets customer intent and compiles real-time information from department stores, outlets, and shopping malls to deliver comprehensive shopping assistance. In addition to responding to customer inquiries, the platform proactively provides store contact information, discount coupons, and promotional event details while anticipating follow-up questions to create a seamless and personalized shopping experience. Furthermore, the chatbot features the Dustin character from Lotte’s proprietary intellectual property to deliver a more engaging and human-like interaction for customers.

In July 2024, Saks Global Holdings LLC, a US-based multi-brand luxury retailer, acquired Neiman Marcus Group for an undisclosed amount. Through this acquisition, Saks Global aims to establish a leading luxury retail platform by bringing together two major luxury department store operators, expanding its customer base, strengthening brand partnerships, and enhancing its omnichannel retail capabilities across the luxury retail sector. Neiman Marcus Group LLC is a US-based company that provides luxury department store retailing services through its physical stores and e-commerce platforms.

Major companies operating in the department stores retailing market are Central Retail Corporation Public Company Limited, Dillard's Inc., El Corte Inglés S.A., Fenwick Limited, Galeries Lafayette Group, Hanwha Galleria Corporation, Hyundai Department Store Co. Ltd., Isetan Mitsukoshi Holdings Ltd., JCPenney, John Lewis Partnership plc, Lotte Department Store Co. Ltd., Macy's Inc., Marks and Spencer Group plc, Marui Group Co. Ltd., Nordstrom, Parkson Retail Group Limited, Reliance Retail Ventures Limited, Shinsegae Department Store Co. Ltd., Shoppers Stop Ltd., SM Retail Inc., Takashimaya Co. Ltd.

North America was the dominating region in the department stores retailing market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the department stores retailing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the department stores retailing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The department stores retailing market includes revenues earned by entities through merchandise sales, private-label product offerings, in-store concession and leased department services, and e-commerce and omnichannel retail operations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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