World: department stores revenue 2020-2025

By 2025, department stores and other general merchandise stores were forecast to reach a revenue of 2.18 trillion U.S. dollars globally, 24 percent more than the value estimated for 2021.

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 expected to recover from the COVID-19 impact 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

According to a survey conducted in 2019, 40 percent of retail organizations worldwide utilize big data technology to leverage their company’s operations. In department stores, big data can be integrated through the recommendation of 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.