Discount Department Stores Market Report 2024

The discount department stores market size has grown strongly in recent years. It will grow from $429.0 billion in 2023 to $464.53 billion in 2024 at a compound annual growth rate (CAGR) of 8.3%. The increase observed during the historic period can be linked to several factors, the appeal of offering high-quality products at affordable prices, urbanization and fast-paced lifestyles, the rise of e-commerce and online shopping, and the growing demand for environmentally-friendly department stores.

The discount department stores market size is expected to see strong growth in the next few years. It will grow to $646.49 billion in 2028 at a compound annual growth rate (CAGR) of 8.6%. The anticipated growth during the forecast period can be attributed to several factors, heightened competition in online retail, rising internet usage, growing fashion trends among youth, increasing demand for omnichannel shopping experiences, and expansion in the apparel and accessories sector. Key trends expected in this period include advancements in technology, a boost in online sales, the introduction of new in-house discount brands by retailers, investment in expanding large-format discount department stores, and the integration of discount stores with online platforms.

The growth in online retail sales is poised to drive expansion in the discount department store market moving forward. Online retail involves selling goods and services over the internet, enabling customers to shop conveniently from home without visiting physical stores. This growth is driven by the convenience of online shopping, a wider selection of products, competitive pricing, and advancements in delivery services and technology. Discount department stores capitalize on this trend by attracting price-conscious consumers with competitive prices, frequent promotions, and a variety of affordable products. For example, as of May 2024, U.S. retail e-commerce sales in the first quarter totaled $289.2 billion, reflecting a 2.1% (±0.7%) increase from the previous quarter, according to the United States Census Bureau. Thus, the rise in online retail sales is fueling the expansion of the discount department store market.

Major players in the discount department store market are concentrating on growth initiatives such as launching new stores, including fashion department stores, to broaden their customer base and enhance competitiveness. Fashion department stores are large retail establishments specializing in apparel, footwear, and accessories, offering products from various brands to cater to diverse customer preferences. For instance, in September 2022, Reliance Industries introduced Reliance Centro, a new fashion and lifestyle department store format in India aimed at democratizing fashion and expanding its market reach. These stores feature a wide range of fashion and lifestyle products including apparel, footwear, accessories, beauty items, and home décor, emphasizing both international and domestic brands to provide customers with a premium shopping experience.

In April 2021, Kohl's Corporation partnered with Tommy Hilfiger to expand Hilfiger's men's sportswear collection across 600 U.S. stores and online. This collaboration enhances Hilfiger's presence with its classic American designs, elevating the in-store shopping experience. Tommy Hilfiger B.V., headquartered in the Netherlands, specializes in high-quality men's tailored clothing, sportswear, and women's apparel collections.

Major companies operating in the discount department stores market are Walmart Inc., Costco Wholesale Corporation, Aldi Inc., Target Corporation, Dollar General Corporation, Macy's Inc., Kmart Corporation, Meijer Inc., Ross Stores Inc., Nordstrom Inc., J.C. Penney Company Inc., Burlington Stores Inc., Dillard's Inc., Academy Sports + Outdoors, Big Lots Inc., Bed Bath & Beyond Inc., Belk Inc., Five Below Inc., Stein Mart Inc., Bealls Inc., Ollie's Bargain Outlet Holdings Inc., At Home Group Inc., Bi-Mart Corporation, Sears Holdings Corporation, Stage Stores Inc.

North America was the largest region in the discount department stores market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the discount department stores market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the discount department stores market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Discount department stores are retail establishments that provide a broad selection of products at prices lower than those found in traditional department stores. They emphasize delivering value to customers by offering reduced prices, often featuring fewer high-end or luxury brands and more affordable alternatives.

In discount department stores, the main categories of merchandise include general goods and specialty items. General merchandise encompasses a diverse array of products commonly found in retail settings, such as clothing, electronics, household goods, toys, and personal care items. These products are available in various forms, including apparel, electronics, groceries, and home essentials, and are sold through both physical stores and online platforms.

The discount department stores market research report is one of a series of new reports that provides discount department stores market statistics, including discount department stores industry global market size, regional shares, competitors with a discount department stores market share, detailed discount department stores market segments, market trends and opportunities, and any further data you may need to thrive in the discount department stores industry. This discount department store market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The discount department stores market includes revenues earned by entities by providing services such as retail sales, extended warranties and services, product returns and exchanges, delivery services, personal shopping services, promotional sales events, and financing options for larger purchases. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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