What:

The 2025 NRF Top 100 Retailers list reveals a widening performance gap between traditional department stores and off-price retailers, with TJX Companies leading the apparel category through 4% sales growth while major department stores experience declining sales.

Why it is important:

This trend reflects broader changes in US retail dynamics, where retailers' ability to maintain pricing flexibility and rapid inventory turnover is becoming crucial for success in an increasingly competitive market.

The latest NRF rankings demonstrate significant shifts in retail performance patterns. TJX Companies, ranked No. 15, achieved 4% comparable store sales growth and increased its US store count by 3.1% to 3,660 locations, with total US sales reaching $43.56 billion. Fellow off-price retailers Ross Stores (No. 25) and Burlington (No. 47) also maintained strong positions. In contrast, traditional department stores struggled, with Macy's (No. 24) reporting a 3% decrease in US sales to $22.21 billion and a 2% decline in comp store sales, while Kohl's (No. 31) saw a 7% decrease in US sales and 6.5% decline in comp store sales. Dillard's (No. 68) emerged as the strongest department store performer, though still experiencing a "soft" year. The emergence of digital competitors like Shein and Temu has further complicated the market dynamics, particularly in fast fashion, while mall retailers attempt revival through experiential offerings targeting younger shoppers.

IADS Notes:

The US retail landscape has shown distinct patterns of winners and losers throughout 2024-2025. October 2024's Coresight Research revealed department stores now capture only 2.6% of retail transactions, down from 14.1% in 1993, while off-price retailers like TJX, Ross, and Burlington continued to thrive. Department store performance diverged significantly, with Dillard's showing relative strength despite a "soft" year, while Macy's reported a 3% decrease in US sales to $22.21 billion and Kohl's experienced a steeper 7% decline. The success of off-price retail was particularly notable in TJX's performance, with 4% comp store sales growth and US sales reaching $43.56 billion, supported by a 3.1% increase in store count to 3,660 locations. This trend coincided with broader changes in mall retail, as reported by The Economist in April 2025, where strategic investments in experiential retail and Gen Z-focused offerings, particularly through Japanese products and foods, showed promising results in attracting younger shoppers. However, the emergence of digital players like Shein and Temu created new competitive pressures, particularly in fast fashion, forcing traditional retailers to adapt their strategies and market positioning.

The NRF Releases the Top 100 US Retailers 2025 list