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Department Stores in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Gaetana Mak Gaetana Mak London, United Kingdom Last Updated: May 2025 SIC UK-G4719

Revenue

£227.4bn

2025-26

£237.4bn

Past 5-Year Growth

Profit

£XX.Xbn

Employees

1m

Businesses

261k

Wages

£XX.Xbn

Department Stores in the UK industry analysis

Department store revenue is expected to inch upwards at a compound annual rate of 1.9% over the five years through 2025. Department stores were once hailed as a one-stop shop and a shopper's favourite, but the retail landscape has changed. Department stores have been slow to keep up with what's in vogue and shoppers' need for instant gratification, losing sales to e-tailers and fast-fashion brands.

Trends and Insights

  • Department stores are no longer in vogue. The once king of the high street has succumbed to shifting consumer preferences and the desire for convenience, affordability and sustainability.
  • Younger shoppers abandon traditional department stores. Age greatly influences shopping preferences, with young adults shunning department stores in favour of alternative, budget-friendly alternatives like online shopping, renting items and fast-fashion outlets.
  • High barriers to success ensure little in market concentration. Brand loyalty and image pose a significant challenge to new entrants. The vast majority of department stores date back to the early 1900s, so they’ve built up a strong brand following.
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Top Questions Answered in this Report

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What is the market size of the Department Stores industry in the United Kingdom in 2025?

The market size of the Department Stores industry in the United Kingdom is £227.4bn in 2025.

How many businesses are there in the Department Stores industry in the United Kingdom in 2025?

There are 261k businesses in the Department Stores industry in the United Kingdom, which has grown at a CAGR of 3.0 % between 2020 and 2025.

Has the Department Stores industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Department Stores industry in the United Kingdom has been growing at a CAGR of 3.1 % between 2020 and 2025.

What is the forecast growth of the Department Stores industry in the United Kingdom over the next 5 years?

Over the next five years, the Department Stores industry in the United Kingdom is expected to grow.

What does the Department Stores industry in the United Kingdom include?

Clothing and footwear and Accessories are part of the Department Stores industry in the United Kingdom.

How competitive is the Department Stores industry in the United Kingdom?

The level of competition is moderate and increasing in the Department Stores industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Most of Europe has a light-touch approach to regulating department stores. Most legislation relating to department stores applies at a broader retail level (e.g. keeping supplier information) and is easy to comply with.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Department Stores in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Price competition threatens profit. Leading department stores face intense price competition as lower-cost retailers expand and consumer trends favour second-hand and rental markets, lowering profit.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Department Stores in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

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