What: Department store foot traffic analysis reveals predictable seasonal patterns and varying performance across brands, with Nordstrom and Nordstrom Rack showing solid YoY growth of 1.4% and 5.0% respectively in Q3 2024, while Macy's and Bloomingdale's outperform the broader category.

Why it is important: The analysis reveals how department stores are navigating post-pandemic recovery through varied strategies, with performance metrics indicating the success of different approaches to format optimisation and customer engagement.

Analysis of department store visit patterns reveals consistent seasonal trends, with major spikes during key shopping periods like Valentine's Day, Mother's Day, and back-to-school season, before peaking during Black Friday week and pre-Christmas. Nordstrom's performance has been particularly notable, with both its traditional stores and Rack format showing sustained growth since April 2024. The off-price Rack division, currently in expansion mode, has outperformed traditional stores through September, though this trend slightly reversed in October. Similarly, Macy's and Bloomingdale's have shown resilience, with Bloomingdale's achieving slight YoY increases in Q2 and Q3 2024. Despite broader category challenges, these retailers appear well-positioned for the holiday season, with historical data suggesting significant upcoming foot traffic increases. The success of varied formats and strategies indicates the sector's ability to adapt to changing consumer preferences while maintaining traditional seasonal strengths.

IADS Notes: The latest foot traffic data aligns with broader department store transformation trends observed throughout 2024. AI-driven insights from November 2024 show Nordstrom and Nordstrom Rack achieving positive year-over-year growth of 1.4% and 5.0% respectively, though this contrasts with the broader sector's holiday season challenges noted in December 2023. The success of off-price formats is particularly evident, as shown by Nordstrom Rack's continued outperformance of traditional stores. This trend occurs amid significant strategic shifts, with Macy's "Bold New Chapter" transformation plan demonstrating how major players are adapting their formats and operations. Coresight Research's analysis reveals changing consumer preferences driving these adaptations, while WWD's industry overview highlights the importance of balancing traditional retail strengths with modern innovations. These developments collectively suggest a sector actively evolving its business model while leveraging seasonal patterns to maintain market relevance.

Checking in with department stores: Nordstrom and Macy’s