United States: people who have purchased at department stores 2020

In a survey carried out in 2020, 66 percent of respondents were revealed to have purchased from a department store in the last twelve months in the United States, compared to 34 percent who answered they did not shop at these types of establishments in the last 12 months.

U.S. department stores in decline

2020 proved to be one of the most difficult years for department stores in the United States. Amidst the coronavirus (COVID-19) crisis, many stores were forced to temporarily close, which negatively impacted many retailers’ financial performance. That year, major department stores, such as JC Penney, Nordstrom, and Macy’s permanently closed a combined total of over 300 stores. JC Penny alone closed 242 stores and filed for bankruptcy in May 2020. As of the end of 2020, the United States had no more than 6,300 department store locations across the country, a decrease of over 1,500 stores when compared to 2015 figures. According to estimates, this value is expected to decrease even more in the next five years.

A hurt industry even before the coronavirus (COVID-19)

Since the beginning of the 21st century, department store sales in the United States have shown a continuous downward trend. In 2019, sales reached 134 billion U.S. dollars and by the end of 2020, this value was estimated to amount to 110 billion U.S. dollars. Moreover, according to a survey carried out a few months before the coronavirus pandemic, 44 percent of U.S. respondents expressed their intention of buying less fashion apparel at department stores. However, despite how complicated the industry scenario might look, department stores are expected to recover by adopting diverse strategies including the use of technology and e-commerce channels.