Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

How are Mid-range and Luxury Department Stores Performing in 2022?

By 
Shira Petrack
May 16, 2022
How are Mid-range and Luxury Department Stores Performing in 2022?
SHARE
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
Key Takeaways

Department stores have been part of the American retail landscape for decades – but their role in consumers’ shopping routines is changing. We dove into foot traffic trends for leading mid-range and luxury brands to see how these iconic retailers are performing in this almost-post COVID world. 

Post-COVID Recovery

COVID hit department stores particularly hard – even after non-essential business reopened, many consumers still avoided shopping indoors. By summer 2021, however, many brands, including Macy’s, Dillard’s, and Kohl’s, were nearing – and sometimes exceeding – pre-pandemic levels. But from the Omicron wave in January to the more recent economic headwinds in March and April, the start of 2022 has brought a fresh batch of challenges – and these set-backs have impacted department stores’ recovery. 

The chart below shows department store monthly foot traffic in the first four months of 2022 compared to the equivalent months in 2021.Year over year (YoY) visits in February 2022 were high for all four brands analyzed – 36.4%, 31.1%, 6.8%, and 32.4% higher for Macy’s, JCPenney, Kohl’s, and Dillard’s, respectively, compared to foot traffic in February 2021. 

But with the impact of inflation in March, YoY visits dipped for JCPenney, Kohl’s and Dillard’s, which shows how fragile the department store recovery still is. But as inflation slowed down in April, department store visits climbed again, with Macy’s and JCPenney March foot traffic showing YoY growth and Kohl’s and Dillard’s visit gaps almost fully closed. This indicates that should these wider economic challenges continue to dissipate, the opportunity for department stores could be exceptional heading into a critical summer shopping season.

Department Store Visits Compared to Pre-Pandemic

Comparing department store foot traffic to pre-pandemic trends shows just how challenging the past two years have been, and puts into context the impressive nature of the sector’s recovery. Overall visits are down across the board, and while some of the visit decrease is due to store fleet consolidation, foot traffic per remaining store is also lower than it was pre-COVID. While Macy’s year-over-three-year (Yo3Y) visits per venue were up 5.3% in April 2022, the average visits per venue for the other three brands is still catching up to 2019 levels. 

These relatively low visits per venue numbers may help explain the move some of these brands are making towards smaller-format stores. Kohl’s recently announced plans to open 100 small-format stores, while Macy’s has already opened several new Market by Macy’s stores designed to give consumers a more curated and less overwhelming department store experience. 

Department stores are also doubling down on the “shop-in-shops” concepts, with Kohl’s expanding its Sephora partnership and Macy’s implementing partnerships with Pandora, Toys “R” Us, and even Wetzel’s Pretzels. As department stores continue shifting their focus away from the one-stop-shop concept and towards brand and product discovery, the smaller format stores and shop-in-shops are sure to bring department stores into the post-COVID era. 

Luxury Apparel Starts 2022 Off Strong

While mid-range department stores continue their recovery trajectory, luxury apparel is thriving. Our Placer.ai luxury retail index that tracks foot traffic trends for brands such as Fendi, Prada, and Chanel indicates that, despite Omicron and inflation, visits to luxury retailers have matched or exceeded pre-pandemic levels every month of 2022 so far. 

Strong Recovery For Luxury Department Store Brands 

Foot traffic data indicates that luxury department stores are indeed thriving – each in its own way. Like mid-range department stores, several high-end department store brands including Neiman Marcus and Nordstrom have consolidated their store fleet over the past two years. Neiman Marcus came out of bankruptcy several stores lighter, and Nordstrom permanently closed 16 stores due to the impact of COVID. So, while overall foot traffic for these two brands is lower than it was in 2019, Yo3Y visits per venue are higher, with April 2022 visits up 5.3% and 11.0% for Nordstrom and Neiman Marcus, respectively. 

And in Q1 2022, the uncontested luxury department store winner was Saks Fifth Avenue. The brand saw significant Yo3Y growth in visits every month so far in 2022, and the strong Q1 could be just the beginning. And following in Nordstrom’s footsteps, Saks recently announced a partnership with Skinney Medspa that will bring botox and other injectables to its Manhattan flagship as a pilot prior to a wider roll-out – which may give the brand a significant boost and help Saks carry its impressive growth streak throughout the rest of 2022. 

Department Stores Evolving Along with Their Consumer Base

The past couple of years have been difficult for department stores. Even prior to COVID, the rise of ecommerce and the mall’s increased emphasis on DTC brands and experiential offerings have forced department stores to rethink the playbook that had served them well for so long. But these legacy brands are rising to the challenge. 

Mid-range department stores are pivoting towards smaller-store formats to streamline the shopping experience and adding shop-in-shops to give customers a reason to visit in-person. Luxury brands are doubling down on their exclusive allure by consolidating their store fleet and pushing the envelope by expanding their beauty offerings to include non-surgical esthetic procedures. So while some department stores are still recovering from COVID’s impact, it seems that all the brands analyzed here are making the adjustments necessary to continue playing a key role in consumers’ shopping routines for many years to come. 

For more data-driven retail insights, visit placer.ai

Learn how downtown regions across US cities are measuring up with our free tools.
Check out the latest trends for
No items found.

Related Topics

Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
SHARE
Get 3 brand & industry
breakdowns every week
Subscribe to the newsletter
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.

Recent Publications

Get 3 brand & industry breakdowns every week

Subscribe to the newsletter
Starbucks and Dutch Bros: Short Visits Lead the Way
Planet Fitness: Raising the Bar(bell)
Checking in With Full-Service Restaurants: First Watch, Chili’s, and Outback Steakhouse
RBI and Yum!: QSR Resilience in 2024
Boot Barn and DSW: Stepping Up Their Game
Target’s October Circle Week: A Data-Driven Snapshot
Chipotle, Shake Shack & Wingstop: Dining Success in Q3 2024
Playa Bowls and Tropical Smoothie Cafe: Berry Big Business
Cheesecake Factory & BJ’s Restaurants: Full-Service Success
Checking in on McDonald's and Wendy's 
Sprouts Farmers Market: A Specialty Grocer With a Traditional Twist
CAVA: The Craze Continues
Placer.ai Reaches $100M Annual Recurring Revenue
Catching Up With Carter's 
A Texas Roadhouse and LongHorn Steakhouse Showdown
Placer.ai Mall Index: September 2024 Recap – Labor Day Peaks and Holiday Season Predictions
Albertsons Q3 Check-In
Looking Ahead to the 2024 Holiday Season
Trader Joe's: Continuing to Thrive in 2024
Bowlero and AMF: A Ten-Pin Knockout
Recreational Retail: Store Performance in 2024
Placer.ai White Paper Recap – September 2024
A QSR and Fast-Casual Face-Off
Sam’s Club’s In-Store Retail Media Network Opportunity
The Rising Stars: Six Metro Areas Welcoming Young Professionals
Costco in 2024: A Deep Dive
Sherwin-Williams in 2024: Brighter Than a New Lick of Paint
Life Time and Orangetheory: Premium Fitness Flourishing
C-Stores: More Than A Pit Stop
Darden: Dining Dominance Undeterred 
Placer 100 Index for Retail and Dining: August 2024 Recap
Placer.ai Office Index: August 2024 Recap
Placer.ai Mall Index: August 2024 Recap – Back-To-School In Full Swing
Auto Parts Retailers: The Traffic Continues
Pumpkin Spice Works its Magic Once Again
School Season Sparks Retail Growth
Placer.ai White Paper Recap – July & August 2024
Big Lots’ Big Rightsizing Move in Four Data Points
Fun Away From The Sun: Checking in With Eatertainment
Domestic Migration and Population Growth: Strong Currents Off The Carolina Coast
The Civic Impact of Summer Events
Retail Trends in College Towns: A Back-to-School Snapshot
Five Below and Ollie’s Bargain Outlet: Consumers Still on the Hunt for Discounts
Macy’s & Bloomingdale’s: Into 2024 and Beyond
Limited Time Only: The Trend Continues
Beauty in 2024: Many Ways to Win
Dollar General & Dollar Tree: Powering Ahead in Q2 2024
The Home Depot and Lowe's Foot Traffic Remodel in Q2 2024
Superstore Update: Summer Savings Spree
Placer.ai Mall Index: July 2024 Recap – From Fourth of July to Back-to-School
Placer.ai Office Index: July 2024 Recap
Summer Movie Madness: Blockbuster Films Boost Foot Traffic
Driving Success: Toyota in 2024
Denny’s and IHOP: An All-Day Breakfast Matchup
Warby Parker: Seeing Clearly Now
Planet Fitness at the 2024 Halfway Point
Serving Summer 2024: RBI and Yum! Brands Q2 Foot Traffic
Starbucks, Dutch Bros., Dunkin’: Finding Summer Success
Fast Food and Fast Casual Favorites, Plus CosMc’s Takeoff
Chipotle and Sweetgreen: Fast-Casual in Q2 2024
First Watch, Texas Roadhouse, and Applebee’s: An FSR Roundup
Albertsons Companies: H1 2024 Recap
Teaming Up For Success: Sports Stadium Sponsorships
Limited Time Offers: Price Wars Boost Visits
Placer 100 Index for Retail & Dining: June 2024 Recap
Placer.ai Mall Index: June 2024 Recap
Placer.ai Office Index: June 2024 Recap
Inside Out 2: The New Blockbuster Bringing Crowds Back to Theaters
Petco and PetSmart: A Head to Head
Frozen Delights: Exploring Ice Cream Chains Across America
Placer.ai White Paper Recap – June 2024
Barnes & Noble: Writing a New Story
Small Format Stores - Sprouting, Blooming, and Expanding
Retail and Dining on Father’s Day
Thrift Store Visit Scores
Charting Value Grocery’s Visit Growth
Placer 100 Index for Retail & Dining: Introduction and May 2024 Recap
Digging Into Darden: Q2 2024 Update
2024 Retail and Dining Trends Update
TRU and avid: Midscale Hotels on the Rise 
Diving Into Kroger: A Strong Start to 2024
Placer.ai Mall Index: May 2024 Recap – Mall Visits on the Rebound
Placer.ai Office Index: May 2024 Recap
2024 Memorial Day Recap
Las Vegas: A Tourism and Migration Deep Dive
Eatertainment Chains: Full on Food, Fun, and Foot Traffic
The Promise of Luxury Apparel
Catching Up With Ulta Beauty & Gap Brands
Ollie’s Bargain Outlet and Five Below: Q1 2024 Treasure Troves
CAVA Still Going Strong
Driving Success: Auto Parts Chains in 2024
Checking in With DICK’S Sporting Goods
Mother’s Day Shopping and Dining Trends
Placer.ai Mall Index: April 2024 Recap – Retail Resilience Heading into Spring
Dollar Stores Still Gaining Momentum
Off-Price Apparel Chains After Q1 2024: Demographics in the Balance
Walmart, Target, and Wholesale Clubs Continue to Thrive
Home Improvement and Decor Check In
Placer.ai Office Index: April 2024 Recap – Recovery Continues
Movie Theaters in Q1 2024: A Preview of Coming Attractions?