World: department stores market size 2021-2026

By 2026, department stores and other general merchandise stores were forecast to reach a market size of 3.62 trillion U.S. dollars globally, an increase of over one trillion dollars from the estimated 2021 figures.

The struggling industry of department stores

The restrictive measures such as lockdowns and the closure of non-essential businesses amid the coronavirus pandemic resulted in catastrophic outcomes for department stores. Many were forced to permanently close their stores, and some even filed for bankruptcy like J.C. Penney. Nonetheless, the industry is fighting back, as department stores and other general merchandise shops are adopting diverse technology besides e-commerce to enhance their supply chain efficiency and provide a more engaging experience with customers.

Use of Big Data in department stores

In department stores, big data can be integrated through recommendation engines, trend forecasting, and price optimization. Recommendation engines can be used to predict customers' future purchases based on historical purchasing decisions. In contrast, trend forecasting can be used to predict trends and forecast demand. Lastly, big data can be used to help companies achieve optimum price points, allowing them to provide discounts, promotions, and other pricing initiatives in a more strategic way.