The traditional definition of a department store centered on multi-category offerings (apparel, beauty, and home), multi-brand assortments with strong private labels, and massive physical footprints anchoring shopping malls. But that definition is evolving.

The retailer will close 12 Saks and three Neiman Marcus stores as it targets luxury shoppers.

Saks Off 5th’s struggles show that clear value and disciplined assortments fuel off-price growth more than brand pedigree.

Given the economic climate, value will remain top-of-mind for most consumers through this year. And retailers can tailor loyalty programs and other promotions to answer some economic challenges caused by tariffs and rising prices.

Saks Global's high-risk bet on Neiman Marcus has backfired, saddling it with considerable debt, limiting its ability to compete and sending it spiraling toward bankruptcy.

Foot traffic trends softened retail in Q3, a potentially troubling sign for holiday spending, according to our Industry KPI data from Placer.ai. The four categories tracked—discount and dollar stores, grocers, department stores, and home improvement stores—had slower growth from July to September, providing more evidence that consumers are feeling the strain of higher living costs. The data points to a rocky year-end for department stores and home improvement retailers, which have struggled this year to overcome sluggish consumer sentiment and uneven spending. At the same time, retailers that offer necessities and can deliver clear value are positioned to win.

Q3 consumer spending looked steady, but the gains were fueled mainly by higher-income shoppers, revealing a split landscape that bolstered value and essentials retailers while squeezing brands dependent on discretionary and big-ticket projects.

Kohl’s topped Q3 expectations and raised its outlook, crediting stronger product assortments, better value through promotions, and improved in-store and digital experiences for helping it win back customers. The company also named interim CEO Michael Bender to the job permanently. Bender, the third person to hold that role in roughly three years, plans to sharpen Kohl's product assortment, offer more proprietary clothing and home goods, and make stores easier to shop to appeal to customers who are “increasingly savvy and are seeking more value.” Kohl’s was upbeat that its recovery is gaining momentum, but it has more work to do to turn sales declines into gains.

As the market for personal luxury goods emerges from a prolonged period of recalibration, growth hinges on fostering innovation and engagement with core consumers across the globe.

Saks Global is in talks to sell a 49% stake in luxury department store Bergdorf Goodman for about $1 billion, per The Wall Street Journal. Selling nearly half of Bergdorf Goodman to an outside investor could ease Saks Global’s liquidity pressures, but it doesn’t address the bigger challenge: The retailer lacks a compelling strategy for growth. The company has not articulated how it will differentiate its department store banners so that they do not compete directly, which is the case in about a dozen markets.

Industry KPI data from Placer.ai reveals a clear divide in retail foot traffic trends. Essentials-focused merchants and dollar stores are maintaining growth while discretionary-heavy sectors like department stores and housing-related chains fall behind. Understanding foot traffic trends is critical for brands and retailers to understand where growth—and risk—will lie in the coming months. Necessities will keep grocers and discounters in demand, while discretionary-focused chains must offer value, cut prices, and explore adjacent business lines—such as off-price formats or supply services—to keep sales coming.

"Department stores are getting a bad rap," said our analyst Suzy Davidkhanian on a recent episode of "Behind the Numbers." "The way that department stores were structured as this one-hit wonder shop where you could find every single thing under one roof is a fallacy." Department stores are in a tough spot, as Hudson BAy’s recent bankruptcy shows. But ones that embrace new kinds of experiences, like the newly opened Printemps luxury department store in New York City's Financial District, might have the right idea for the future of department stores.

Record holiday sales helped retailers, but purchasing patterns across income groups diverged starkly. Middle- and lower-income consumers grew more selective, carefully weighing where and when to spend amid economic uncertainty. Meanwhile, higher-income shoppers continued to spend freely.

Macy’s makes strides in Q4, but pressures persist: Revamped stores show improvement, but the company’s turnaround is a work in progress.

With luxury poised for a modest recovery in 2025, brands and retailers need to understand consumers’ buying habits and intentions in the world’s largest personal luxury goods market to win a share of spending.

Department stores face an uphill battle as discounters, online retailers take share: Our Industry KPIs show foot traffic declined during the holiday season, emphasizing the sector’s challenges.

Beauty’s run of strong retail sales growth is winding down, but new audiences and sales channels will offer opportunities for savvy brands and retailers to regain momentum.

Macy’s struggles attract another activist investor: Barington Capital is pushing the retailer to boost its stock price by reducing capex, rethinking its real estate strategy, and potentially offloading Bloomingdale’s.