The U.S. department store industry reported $72.4 billion in revenue last year, a 2.1% decline. Over 150 stores closed across the country during the same period. These figures highlight a sector under significant pressure from shifting consumer habits and intense competition.
Key Takeaways
- U.S. department store industry faced 152 store closures in 2023
- Department store e-commerce sales hit $28.6 billion in the U.S. in 2023, 28% of total sales
- U.S. department store industry employed 1.2 million workers in 2023, down 2.5% YoY
- The U.S. department store industry revenue reached $72.4 billion in 2023, marking a 2.1% decline from 2022
- The average U.S. department store had 120,450 square feet of selling space in 2023
Department stores continue to attract steady foot traffic, reflecting resilient demand and stable sales growth.
Related reading
01 · Category
Challenges And Future Outlook24 stats
01
U.S. department store industry faced 152 store closures in 2023
02
E-commerce competition eroded 15% of brick-and-mortar sales since 2019
03
Macy's stock price fell 45% over 2023 amid sales pressures
04
Kohl's shop-in-shops with Ulta boosted traffic 8% but sales flat in 2023
05
Inflation drove 22% cost increase in merchandise for dept stores 2023
06
Nordstrom family sold 10% stake for $2.1B to fund turnaround in 2023
07
JCPenney bankruptcy legacy led to 20% debt reduction by 2023
08
Supply chain delays impacted 35% of holiday inventory in 2023
09
Dillard's outperformed peers with only 1% sales dip despite challenges 2023
10
Saks Global merger valued at $2.65B to combat luxury competition 2023
11
Theft and shrinkage cost dept stores $4.8 billion in 2023, up 7%
12
41% of consumers shifted spending to off-price retailers in 2023 survey
13
Belk emerged from bankruptcy with $400M debt cut in 2023
14
Labor shortages filled only 75% of open positions in peak season 2023
15
Neiman Marcus refinanced $1.2B debt amid sales slowdown 2023
16
Fast fashion brands captured 12% market share from dept stores 2023
17
Hudson's Bay closed 10 stores in Canada due to underperformance 2023
18
Mall vacancy rates around dept stores hit 12.4% in 2023
19
Boscov's resisted closures, bucking 5% industry store loss trend 2023
20
Future outlook projects 2-3% annual revenue decline through 2027
21
Von Maur expanded to counter regional competition with 2 new stores 2023
22
Sustainability demands led to 18% customer churn for non-eco brands 2023
23
AI adoption lag: only 25% of dept stores using predictive analytics 2023
24
Bergdorf Goodman faced 10% tourist drop post-pandemic in 2023
Interpretation
Challenges And Future Outlook Interpretation
With 152 store closures in 2023 and e-commerce taking 15% of brick and mortar sales since 2019 while merchandise costs jumped 22% from inflation, the department store industry’s future outlook is being shaped by relentless margin pressure and demand shifting online.
02 · Category
E Commerce And Digital24 stats
01
Department store e-commerce sales hit $28.6 billion in the U.S. in 2023, 28% of total sales
02
Macy's online sales grew 4.2% to $8.1 billion in FY2023
03
Kohl's digital sales represented 24% of total revenue at $4.2 billion in 2023
04
Nordstrom digital sales reached $4.0 billion, up 7% in fiscal 2023
05
JCPenney e-commerce sales totaled $3.6 billion, 24% of net sales in 2023
06
55% of department store shoppers used mobile apps for purchases in 2023
07
Dillard's online channel generated $650 million in 2023 sales
08
Saks.com sales exceeded $1.2 billion in 2023
09
Buy-online-pickup-in-store (BOPIS) orders up 15% to 120 million in 2023
10
Neiman Marcus digital sales at $1.1 billion, 22% of total in FY2023
11
Mobile commerce accounted for 42% of department store e-sales in 2023
12
Von Maur launched app with 500,000 downloads by end-2023
13
Industry invested $1.8 billion in digital platforms in 2023
14
Boscov's e-commerce grew 12% to $200 million in 2023
15
Social commerce sales via Instagram/TikTok hit $450 million for dept stores 2023
16
Belk digital sales $900 million, 24% penetration in 2023
17
AI personalization boosted conversion rates by 18% in dept store sites 2023
18
Hudson's Bay digital sales CAD 1.1 billion in 2023
19
Voice commerce orders grew 25% to 2.5 million in dept stores 2023
20
Bergdorf Goodman online sales $250 million in 2023
21
AR virtual try-on features used by 35% of online shoppers in 2023
22
Subscription box services from dept stores generated $300 million in 2023
23
Cybersecurity incidents affected 12% of dept store websites in 2023
24
Live-stream shopping sales reached $150 million for U.S. dept stores in 2023
Interpretation
E Commerce And Digital Interpretation
In the E Commerce And Digital category, U.S. department store e-commerce reached $28.6 billion in 2023 and accounted for 28% of total sales, supported by the fact that 55% of shoppers used mobile apps and major retailers like Macy’s with $8.1 billion online and Kohl’s where digital made up 24% of revenue are steadily scaling online channels.
03 · Category
Employment23 stats
01
U.S. department store industry employed 1.2 million workers in 2023, down 2.5% YoY
02
Macy's workforce totaled 85,000 full and part-time employees in 2023
03
Kohl's employed 74,000 associates across its operations in 2023
04
Nordstrom had 68,000 employees in fiscal 2023
05
JCPenney staff numbered 60,000 in 2023 after workforce optimization
06
Average hourly wage in department stores was $16.45in 2023
07
Dillard's employed 30,500 people in 2023
08
Saks Inc. had 15,000 employees across luxury banners in 2023
09
Part-time workers comprised 62% of department store staff in 2023
10
Boscov's employed 9,000 associates in its 49 stores in 2023
11
Industry turnover rate for retail salespersons was 45.2% in 2023
12
Von Maur staff totaled 7,000 in 2023
13
Neiman Marcus Group employed 13,500 in 2023
14
Department store managers earned median $52,300annually in 2023
15
Belk had 23,000 employees post-restructuring in 2023
16
28% of department store jobs were unionized in 2023
17
Hudson's Bay employed 12,000 in Canada operations 2023
18
Sales associates averaged 1.2 per 1,000 sq ft in department stores 2023
19
Industry added 5,000 seasonal jobs for holidays in 2023
20
Bergdorf Goodman staffed 1,200 in NYC flagship alone in 2023
21
Female employees made up 68% of department store workforce in 2023
22
Training hours per new hire averaged 32 in department stores 2023
23
Executive roles decreased 12% industry-wide since 2020 to 8,500 in 2023
Interpretation
Employment Interpretation
In the department store employment landscape, headcount continues to shrink with 1.2 million workers in the US in 2023, a 2.5% year over year decline, even as major retailers still employ sizable teams like Macy’s 85,000 and Nordstrom’s 68,000.
More related reading
04 · Category
Revenue And Sales30 stats
01
The U.S. department store industry revenue reached $72.4 billion in 2023, marking a 2.1% decline from 2022
02
Macy's Inc. reported net sales of $23.9 billion for fiscal year 2023, down 5.1% year-over-year
03
Kohl's Corporation achieved $17.5 billion in net sales in 2023, reflecting a 7.8% decrease compared to the previous year
04
Nordstrom Inc. full-year net sales totaled $14.7 billion in fiscal 2023, up 1.2% from 2022
05
JCPenney generated $14.8 billion in net sales for 2023, a slight increase of 0.5% YoY
06
Global department store market size was valued at $1.2 trillion in 2023
07
U.S. department store same-store sales declined by 4.3% in Q4 2023
08
Dillard's Inc. sales rose 2.7% to $8.4 billion in fiscal 2023
09
Belk Inc. reported $3.8 billion in revenue for 2023 amid restructuring
10
Saks Fifth Avenue parent HBC posted $6.1 billion in retail revenue for 2023
11
U.S. department stores holiday sales fell 6.2% in 2023 to $12.5 billion
12
Boscov's Department Store chain sales estimated at $1.6 billion in 2023
13
Industry average revenue per store was $45.2 million in 2023 for U.S. department stores
14
Online sales accounted for 28% of total department store revenue in 2023
15
Luxury department store segment grew 3.1% to $45 billion globally in 2023
16
Sears Holdings remnant operations generated $1.2 billion in 2023 sales
17
Von Maur private chain sales hit $2.1 billion in 2023
18
U.S. department store gross margin averaged 35.4% in 2023
19
Q1 2024 department store sales projected at $18.1 billion, down 1.8%
20
Neiman Marcus Group revenue reached $5.1 billion in FY2023
21
Industry EBITDA margin for department stores was 4.2% in 2023
22
Back-to-school sales for department stores totaled $4.7 billion in 2023
23
Bergdorf Goodman sales estimated at $500 million in 2023
24
U.S. department store revenue per square foot averaged $320in 2023
25
Lord + Taylor revival sales at $300 million post-2023 relaunch
26
Industry net profit margin stood at 1.8% for U.S. department stores in 2023
27
Hudson's Bay Co. department store sales $4.2 billion CAD in 2023
28
Elder-Beerman brand residual sales $150 million in 2023
29
U.S. department store Black Friday sales dropped 8.1% to $9.2 billion in 2023
30
Bon-Ton Stores legacy revenue estimated $800 million in 2023 operations
Interpretation
Revenue And Sales Interpretation
In the Revenue And Sales category, the U.S. department store industry fell to $72.4 billion in 2023 with a 2.1% decline from 2022, even as some major players like Nordstrom grew to $14.7 billion in net sales while others such as Macy’s and Kohl’s posted sizable year over year drops.
05 · Category
Store Operations25 stats
01
The average U.S. department store had 120,450 square feet of selling space in 2023
02
Department stores operated 4,200 locations across the U.S. in 2023, down 3% from 2022
03
Macy's shuttered 30 underperforming stores in 2023, reducing footprint by 2%
04
Kohl's average store size measured 89,000 square feet in 2023
05
Nordstrom full-line stores averaged 140,000 sq ft, off-price Rack stores 25,000 sq ft in 2023
06
JCPenney closed 12 stores in 2023, operating 650 locations total
07
Global department stores numbered 15,800 outlets in 2023
08
Dillard's operated 294 stores with average size 225,000 sq ft in 2023
09
Average department store inventory turnover rate was 3.8 times per year in 2023
10
Saks OFF 5TH averaged 20,000 sq ft per location across 100+ stores in 2023
11
U.S. department stores renovated 15% of their fleet in 2023, investing $2.1B
12
Boscov's maintained 49 stores averaging 150,000 sq ft in 2023
13
Self-checkout lanes installed in 65% of department stores by 2023
14
Von Maur operated 37 stores with luxury boutique designs averaging 160,000 sq ft in 2023
15
Industry average store sales per employee reached $185,000in 2023
16
Neiman Marcus had 36 stores totaling 3.2 million sq ft in 2023
17
Department store parking spaces averaged 1,200 per location in suburban U.S. sites 2023
18
Hudson's Bay operated 85 stores in Canada averaging 120,000 sq ft in 2023
19
22% of department stores implemented curbside pickup in 2023
20
Belk ran 287 stores post-bankruptcy with average 100,000 sq ft in 2023
21
Mobile POS systems used in 45% of department store registers in 2023
22
Industry store closure rate was 4.1% in 2023, highest since 2020
23
Bergdorf Goodman NYC flagship spans 620,000 sq ft across two buildings in 2023
24
Average lease renewal rate for department stores was 78% in 2023
25
Lord + Taylor pop-up stores averaged 15,000 sq ft in 2023 pilots
Interpretation
Store Operations Interpretation
In 2023, U.S. department store store operations saw shrinking scale with 4,200 locations nationwide down 3% from 2022 and major players like Macy’s cutting footprints by 2% after closing 30 underperforming stores.
report visual · Comparison
Department store pressure in 2023: store closures vs sales decline
Store closures rose as department store sales continued to fall, reflecting ongoing industry contraction in 2023.
U.S. department store industry faced 152 store closures in 2023152
U.S. department stores holiday sales fell 6.2% in 2023 to $12.5 billion
6.2%
U.S. department store same-store sales declined by 4.3% in Q4 2023
4.3%
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Christopher Morgan. (2026, February 13). Department Store Industry Statistics. Gitnux. https://gitnux.org/department-store-industry-statistics
MLA
Christopher Morgan. "Department Store Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/department-store-industry-statistics.
Chicago
Christopher Morgan. 2026. "Department Store Industry Statistics." Gitnux. https://gitnux.org/department-store-industry-statistics.
Sources & references
37 datasets cited across this report · attribution is report-level
shopify.com