Market Trends of Department Stores Industry
Increase in Retail E-Commerce Sales have the Negative Impact on Department Stores Market
E-Commerce is the most popular platform to purchase any product by simply sitting at home. E-commerce is one of the significant challenges for the department store market. The entire e-commerce industry has grown dramatically over the years, and as a result, adoption rates for different platforms have also increased. Global e-commerce sales grew at an optimistic growth rate in 2021 compared to the previous year. China and South Korea are ranked first and third on the list of countries with a significant share of retail sales expected to occur online in 2022. Major online platforms are Amazon, eBay, Aliexpress, Target, and Walmart, etc. online sales are expected to reach double-digit growth in the forecast period.
Rise in Urban Population is Driving the Growth of Departmental stores
In 2022, the degree of urbanization worldwide was at 57 percent. North America was the region with the highest level of urbanization, with over four-fifths of the population residing in urban areas. Departmental stores are mainly located in Urban areas. If the population is more, it will directly impact purchasing daily needs. By 2025, city-dwellers will account for some $20 trillion of the annual global economy. Because retail follows people, retailers must plan to cater to these shoppers' needs and priorities and their concentrated purchasing power to remain competitive.
