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Department Store Retailing Market : In-depth market segmentation by 2020
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Online shopping is becoming popular among the consumer due to the ease of shopping. In order to catch-up with online retailers, many department stores are going online and expanding their reach. Department store retailing market can be segmented by store types into: upscale department store, mid-range department store, discount department store and others. Department store retailing market can be bifurcated into five categories: clothing, toiletries, cosmetics, home appliances and others.
Different department stores reflect different kinds of spending. Generally upscale department store carries expensive and better quality products. On the other hand, discount department store carries less expensive products.
North America is the largest market for department store retailing, followed by Europe. Asia Pacific is expected to be fastest growing market for department store retailing.
Rising disposable income, increasing promotional activity, increasing consumer confidence and ever-increasing population in the developing countries are some of the major driving force for department store retailing market. With the lower effect of economic recession, employment rate and disposable income levels are raising, which allows the consumer to spend more on products such as apparels, cosmetics and toiletries. Thus increase in the confidence level of consumer which allows them to spend money easily. According to the National Bureau of Statistics China, annual per capita disposable income of urban households in China increased from USD 2,271.0 in 2008 to USD 3408.5 in 2012. The overall annual disposable income in India medium household income increased from USD 1,366.2 billion in 2010 to USD 1,587.6 billion in 2013.
The major companies operating in the department store retailing market include David Jones, Myer, Nordstrom, JCPenny, KOHL’S, Dillard’s, Hudson’s Bay Company, Falabella, Lojas Riachuelo and Liverpool.
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