Department Stores in 2025: A Mid-Year Recap

Department stores have faced their fair share of challenges in recent years – and many of these household names are still figuring out how to remain relevant and adapt to a challenging economic environment.

With the first half of the year nearly behind us, we took a look at the visit performance for some of the major players in the department store space to understand their current standing.

High-End Performance

As consumer budgets continue to react to the strain of rising prices, department stores are experiencing mixed visitation patterns. While luxury shoppers have, in some cases, been more insulated from the effects of inflation and rising costs, visits to high-end department stores have not been spared from this overall volatility.

However, some department stores are rallying. Visits to Nordstrom (which will be shifting to private ownership soon) and Bloomingdale’s grew by 3.3% and 2.7%, respectively, in Q1 2025 compared to Q1 2024. Meanwhile, Saks Fifth Avenue and Neiman Marcus – which recently merged – saw their Q1 2025 visits drop by -6.0% and -5.9% YoY, respectively.

Average visits per location showed more variance, with Nordstrom the only department store to experience growth in this metric (+4.1%). 

Analyzing visits into April showed a continuation of the quarterly trends explored above. Nordstrom and Bloomingdale’s continued to enjoy visit growth for the most part, while Saks Fifth Avenue and Neiman Marcus visits declined slightly relative to 2024. 

Mid-Range Performance

While Nordstrom, Macy’s, and Saks are known for their luxury offerings, several other department stores cater to a more mid-range consumer – and like their luxury counterparts, their visit performance has varied since the start of the year.

In Q1 2025, Macy’s was the sole department store among those analyzed to experience overall visit growth – though none of the chains saw their average visits per location surpass those of Q1 2024. However, April visits offered a more positive outlook, with Belk and JCPenney, in particular, showing elevated visits in all but one week of April 2025. Dillard's also displayed promising visitation patterns, with weekly visits up for two weeks of April.

And in an environment where so many department stores are struggling, the ability for these brands to keep visits near, or above, previous years’ levels suggests that this segment is enjoying stability. 

Holding the Line

Despite the challenges facing the overall retail segment, department stores are proving their staying power. The strong visit performance of some – like Nordstrom and Belk – alongside the visit declines of others highlight that the way ahead looks different for every store.

With plenty of changes – including in ownership and merchandising initiatives – coming up for many of these chains, will visits continue to grow? 

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