Global department store sales dip 1.6% as post-COVID growth levels off

The average global year-over-year (YoY) sales growth in fiscal 2023–2024 showed a slight decline of around –1.6 per cent, following two years of strong growth, as per the 2025 edition of Global Department Store Monitor released by IADS.

The share of department store sales in their parent companies’ total retail sales is also stabilising and nearing pre-pandemic levels. This shift is partly attributed to a broader decline in global retail sales by parent companies after their 2021–2022 peak, driven by factors such as reduced consumer purchasing power, a slowdown in the luxury sector, heightened focus on environmental responsibility, and region-specific challenges.

Region-wise, the ripples of US-American economic actions will be felt worldwide, with the EU, China and Canada, among other countries, discussing retaliatory tariffs. The potential US TikTok ban pending its sale to a US owner adds to the uncertainty, given that it is an essential social media channel that drives trends and influences consumer behaviour in the fashion industry, IADS said in a press release.

Emerging Asian markets like Vietnam and India will significantly impact the global retail landscape. Galeries Lafayette’s first Indian department store, in partnership with Aditya Birla Group, will open in Mumbai this year and a second one in Delhi in 2026.

In the EU, revised sustainability directives mandate comprehensive environmental reporting and due diligence from retailers by 2028. The global economic forecast for 2025 is uncertain and will digress sharply from 2024 results.

Looking ahead, IADS predicts that the appointment of President Donald Trump in the US and impending tariffs will restructure global retail supply chains. Though inflation across other economies has decreased, the US market fears stagflation despite Trump’s pro-domestic growth agenda.

The 2025 edition of the IADS Global Department Store Monitor reviews 59 department stores with publicly available information to create a benchmark for industry stakeholders regarding the 2023-2024 period.

ALCHEMPro News Desk (SG)