According to market research firm Spherical Insights, which has been working in the retail, department store, consumer goods, omnichannel commerce, and shopping center industries for the last 10 years, their market study indicates that the global department store retailing market was valued at approximately USD 1.16 trillion in 2025 and is projected to reach around USD 1.76 trillion by 2035, expanding at a CAGR of 4.3% during the forecast period of 2026–2035.
John Lewis is investing £50m this year across five stores as part of a long-term programme to transform and elevate all 36 stores across its estate into retail destinations for customers to discover, explore, and enjoy.
Customers in Glasgow, Cambridge, Leicester, Reading, and Liverpool will benefit from this latest phase of investment. Glasgow will receive more than £20m in a full redevelopment – the largest single-store investment made by the brand in recent years. The refurbishments will bring new brands, elevated products and experiences, and an environment that meets customers’ wants and needs.
This investment is the latest acceleration of John Lewis’s wider £800m brand transformation. Over time, every John Lewis store will benefit from investment designed to improve the customer experience and respond to changing customer expectations, specifically the growing demand for inspiration, Partner expertise, and a seamless cross-channel experience.
As shopping habits evolve, customers want to move seamlessly between online and in-store shopping. John Lewis continues to see strong demand for the unique experiences that only physical stores can provide: tailored expert advice, personal styling, and the opportunity to experience products first-hand.
The retailer is also seeing customers use stores differently. Last year, John Lewis hosted a record number of appointments across services including personal styling and nursery advice. Hospitality now accounts for more than one in five store transactions, reflecting growing demand for stores that combine shopping, services, and hospitality in a single visit.
The investment to create inspiring retail destinations is delivering results. Refurbished stores have consistently achieved sales growth following investment, alongside improvements in customer satisfaction, giving John Lewis confidence to continue investing across its estate.
The programme comes as John Lewis achieved record customer satisfaction scores and was ranked the UK’s number one retailer in the UK Customer Satisfaction Index, and its recent Which? Retailer of the Year win.
The Glasgow redevelopment will see every floor of the 28,000 square metre store upgraded across fashion, beauty, home and technology. The store will remain open throughout the refurbishment, with the phased transformation running through to spring 2027.
Alongside Glasgow, multi-million-pound investments will be made in the John Lewis Cambridge, Leicester and Reading stores, while the Liverpool store will receive further enhancements following its investment last year.
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The latest investment sits alongside the transformation of John Lewis’ hospitality offer, with its new Platter John Lewis concept being rolled out across 32 cafés and restaurants by the end of 2027.
Peter Ruis, Managing Director of John Lewis, said: “Whether customers shop with us online, in our shops or across both, they expect the same trusted advice, service and experience.
“We’re continuing to invest across our estate so our shops reflect the things customers value most about John Lewis – expert guidance, inspiring products and the confidence to make the right choice. These investments are about more than just a fresh look; they are about creating places where customers love to spend their time.”
“The response from customers to the improvements we’ve already made gives us confidence to continue investing for the long term.”
Kathy Murdoch, Centre Director for Buchanan Galleries, Landsec said: “We welcome John Lewis’s £20m investment in its store in Glasgow, a powerful vote of confidence in the city. It complements our own plans for Buchanan Galleries, where we are investing to enhance the retail and leisure offer, create new experiences, and support Glasgow’s continued growth as a leading UK destination. The centre will be open and trading as normal throughout, and we look forward to seeing the new store take shape.”
Blair McDougall, Minister for Small Business and Economic Transformation, said: “This investment, and particularly the commitment to the Glasgow branch, is a strong vote of confidence in our high streets and the future of the UK retail sector.
“Together with Government support through its Small Business Plan and upcoming High Streets Strategy, it will help high streets thrive, create jobs and drive growth in communities across the UK.”
Tom Arthur, Minister for Business and Fair Work, said: “This major refurbishment plan is exciting news for John Lewis customers as well as being a welcome statement of intent that will support and enhance Glasgow city centre’s reputation as a shopping destination.
“I look forward to this being a catalyst to help drive further footfall and investment across the city centre and the Scottish Government will continue to work closely with local retailers and other businesses to help drive further investment and innovation across the city centre.”
The Future of Department Stores: How Experience-Driven Retail is Reshaping Global Shopping Destinations
The global retail landscape is undergoing a profound transformation as department stores evolve from traditional product-focused outlets into immersive shopping destinations. Faced with changing consumer expectations, increasing digital competition, and the rapid adoption of omnichannel commerce, department store operators are investing in technology, personalization, sustainability, and experiential retail concepts to remain competitive.
Today’s consumers seek more than transactions they expect convenience, entertainment, personalized services, and seamless digital integration. As a result, department stores are redefining their role within the broader retail ecosystem and positioning themselves as lifestyle hubs rather than conventional shopping venues.
The Rise of Experience-Centric Retail
Modern department stores are increasingly focused on delivering memorable experiences that cannot be replicated online. Retailers are incorporating entertainment zones, beauty studios, wellness centers, luxury lounges, product customization stations, and exclusive brand showcases.
Consumers are spending more time in stores that offer interactive experiences, driving higher customer engagement and increasing average spending per visit. This shift is helping retailers strengthen brand loyalty while attracting younger demographics who value experiences as much as products.
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Artificial Intelligence is Transforming Retail Operations
Artificial intelligence is becoming a critical component of department store strategies worldwide. AI-powered recommendation systems analyze consumer behavior and shopping patterns to deliver personalized offers and product suggestions.
Retailers are also using AI to optimize inventory management, forecast demand, automate replenishment processes, and improve operational efficiency. Smart analytics help stores reduce stockouts, minimize waste, and maximize profitability while enhancing the customer experience.
Omnichannel Commerce Becomes the New Standard
The distinction between online and offline retail continues to fade. Department stores are increasingly adopting omnichannel models that integrate physical stores with digital platforms.
Features such as click-and-collect services, same-day delivery, virtual consultations, mobile payment solutions, and real-time inventory visibility are becoming essential competitive differentiators. Consumers now expect a seamless shopping journey across multiple channels, making omnichannel capabilities a critical growth driver for the industry.
Luxury Brands Drive Premium Department Store Growth
Luxury and premium product categories are emerging as important revenue generators for department stores. High-end fashion, beauty products, accessories, watches, and lifestyle goods continue to attract affluent consumers seeking personalized services and exclusive shopping experiences.
Many department stores are dedicating larger floor spaces to luxury brands and introducing premium customer service offerings, including private shopping appointments, VIP lounges, and concierge services to increase customer retention and spending.
Sustainability is Redefining Retail Infrastructure
Environmental responsibility is becoming a major focus area across the department store industry. Retailers are investing in energy-efficient buildings, sustainable sourcing practices, eco-friendly packaging, and waste reduction programs.
Green retail initiatives not only help organizations meet sustainability targets but also resonate strongly with environmentally conscious consumers. Companies that successfully align their operations with sustainability objectives are likely to gain a competitive advantage in the coming years.
Smart Stores and Digital Innovation
The next generation of department stores is being built around digital innovation. Technologies such as smart mirrors, augmented reality fitting rooms, digital price tags, mobile checkout systems, and interactive product displays are enhancing convenience and engagement.
These innovations help retailers create personalized shopping journeys while improving operational efficiency. Smart stores are expected to become increasingly common as retailers seek to blend physical and digital experiences seamlessly.
Emerging Markets Present Significant Growth Opportunities
Rapid urbanization, expanding middle-class populations, and increasing consumer spending in emerging economies are creating substantial opportunities for department store expansion.
Countries across Asia-Pacific, Latin America, and the Middle East are witnessing rising demand for organized retail formats, premium shopping destinations, and international brands. Retail developers are responding by investing in large-scale retail centers and mixed-use commercial developments that support department store growth.
Data Analytics is Enhancing Customer Understanding
Retailers are leveraging advanced analytics to better understand customer behavior, purchasing trends, and market dynamics. By utilizing customer data, department stores can develop targeted marketing campaigns, optimize product assortments, and improve customer engagement strategies.
Data-driven decision-making is becoming a cornerstone of modern retail management, enabling businesses to improve profitability while delivering more relevant shopping experiences.
Future Outlook for the Department Store Industry
The department store industry is entering a new era characterized by innovation, digital transformation, and customer-centric business models. Retailers that successfully combine experiential retail, advanced technology, sustainability initiatives, and omnichannel capabilities will be better positioned to capture future growth opportunities.
As consumer expectations continue to evolve, department stores are expected to play an increasingly important role as integrated lifestyle destinations that offer shopping, entertainment, dining, and personalized services under one roof.
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Top 10 Leading Companies Shaping the Global Department Store Market
- Macy’s, Inc.
Founded: 1858
CEO: Tony Spring
Headquarters: New York, United States
Macy’s is one of the largest department store operators globally, offering apparel, beauty products, home furnishings, and accessories through its extensive retail network. The company continues to invest in digital commerce, omnichannel fulfillment, and customer loyalty programs. Its focus on store optimization, private-label brands, and technology-driven retail experiences has strengthened its position in the evolving department store industry.
- Nordstrom, Inc.
Founded: 1901
CEO: Erik Nordstrom
Headquarters: Seattle, United States
Nordstrom is recognized worldwide for premium customer service and luxury retail offerings. The company operates full-line department stores and off-price retail formats while emphasizing personalized shopping experiences. Investments in digital platforms, inventory integration, and omnichannel capabilities have helped Nordstrom maintain strong customer engagement and drive long-term growth.
- Kohl’s Corporation
Founded: 1962
CEO: Ashley Buchanan
Headquarters: Wisconsin, United States
Kohl’s serves millions of customers through a nationwide network of department stores focused on affordable fashion, beauty, home goods, and lifestyle products. The retailer has accelerated investments in e-commerce, loyalty initiatives, and strategic partnerships to strengthen customer acquisition. Its value-focused retail model continues to support growth in a competitive marketplace.
- Dillard’s, Inc.
Founded: 1938
CEO: William T. Dillard II
Headquarters: Arkansas, United States
Dillard’s is a leading department store chain known for fashion apparel, cosmetics, home furnishings, and luxury merchandise. The company emphasizes premium customer experiences and curated product offerings. Continued investments in inventory management, digital retailing, and store modernization initiatives have supported its market presence across the United States.
- El Corte Inglés
Founded: 1940
CEO: Gastón Bottazzini
Headquarters: Madrid, Spain
El Corte Inglés is Europe’s largest department store group and operates across retail, travel, insurance, and financial services. The company has adopted extensive digital transformation initiatives while expanding premium shopping experiences. Its diversified business model and strong brand recognition continue to support leadership within the European department store sector.
- Marks & Spencer
Founded: 1884
CEO: Stuart Machin
Headquarters: London, United Kingdom
Marks & Spencer remains one of the most influential retailers in the United Kingdom. The company is known for quality apparel, food products, and home goods. Significant investments in supply chain modernization, sustainability initiatives, and digital commerce have enabled the retailer to adapt to evolving consumer expectations and strengthen profitability.
- John Lewis Partnership
Founded: 1929
Chairman: Jason Tarry
Headquarters: London, United Kingdom
John Lewis Partnership operates one of the UK’s most established department store networks. The company is actively modernizing stores, enhancing omnichannel services, and developing experience-led retail environments. Its customer-centric approach and strong brand loyalty continue to support its competitive position within the department store market.
- Selfridges Group
Founded: 1908
Managing Director: Andrew Keith
Headquarters: London, United Kingdom
Selfridges is a globally recognized luxury department store operator known for premium fashion, beauty, and lifestyle products. The company focuses on experiential retail, sustainability, and luxury consumer engagement. Innovative store concepts and exclusive brand collaborations continue to strengthen its position in the premium retail segment.
- Galeries Lafayette
Founded: 1893
CEO: Nicolas Houze
Headquarters: Paris, France
Galeries Lafayette is among the most iconic department store brands in Europe, attracting millions of shoppers annually. The company specializes in luxury fashion, beauty, accessories, and home products. Continued investments in international expansion, digital innovation, and premium customer experiences contribute to its sustained market leadership.
- Lotte Department Store
Founded: 1979
CEO: Jung Joon-ho
Headquarters: Seoul, South Korea
Lotte Department Store is a major force in the Asia-Pacific retail industry. The company operates large-scale department stores featuring luxury brands, lifestyle products, and entertainment facilities. Investments in smart retail technologies, digital platforms, and customer engagement initiatives have positioned Lotte as a leading innovator in modern department store retailing.
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Conclusion
The global department store market is entering a transformative phase as retailers move beyond traditional merchandising models to create integrated shopping destinations centered on convenience, personalization, and customer engagement. The rapid adoption of artificial intelligence, omnichannel retail strategies, smart store technologies, and sustainability initiatives is redefining how consumers interact with physical retail environments. Department stores are increasingly leveraging data-driven insights, premium services, and immersive in-store experiences to strengthen customer loyalty and remain competitive in an increasingly digital marketplace. As urbanization, consumer spending, and demand for experiential retail continue to rise, the industry is expected to witness sustained investment in store modernization and digital infrastructure. Leading retailers across North America, Europe, and Asia-Pacific are already setting new benchmarks through innovation, operational efficiency, and customer-centric business models. Looking ahead, organizations that successfully combine technology, sustainability, and seamless cross-channel experiences will be best positioned to capture emerging opportunities and drive long-term growth in the global department store market through 2035 and beyond.
