In an ailing economy, department stores are seeing their sales fall. The sector fears the impact of import duties and is unsure about which future TikTok has in store for them, but they still see growth potential in emerging Asian markets.
Regional differences
After a significant sales growth in 2021 and 2022, luxury department stores saw a decline in 2023 and 2024, with an average decline of 1.6 %. The post-pandemic sales peak is over, and retailers in all regions are facing market uncertainty, sluggish economic growth and unfavourable interest rates. These are the main conclusions put forward in the new edition of the Global Department Store Monitor by industry body IADS (International Association of Department Stores), which analyses the financial results of 59 department stores. The report does point to regional differences.
