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It provides regional market values, product shares, insight into the main regional players and analysis of key market drivers and inhibitors. It also provides comprehensive profiles of the Top 12 global department store retailers.Scope *Value of the department store sector in North America, Europe, Japan, Latin America, China, MEA and the rest of Australasia with forecasts to 2014. *Profiles of the Top 12 retailers including details of current and future strategies, sales performance, store numbers and other operating data to 2009. *A dedicated chapter for each region inclusive of sales, store numbers, space as well as insight into the main players and key regional sector trends.Highlights The global department store market shrank by 4% in 2009 (to $343bn), pulled down by falls of over 6% in North America and Europe where consumers have reacted to the rising tide of unemployment, smaller bonus payments and falling asset prices by reducing non-essential expenditure and switching to more value-orientated retailers. With opportunities for further stores often limited in mature developed markets, an increasing number of operators aim to build an international presence. The fastest expansion is being achieved by those using franchises, such as Debenhams and Marks & Spencer. Others prefer a more direct approach with whole- or part-ownership of new stores. Despite dampened growth in 2009, we expect sales to bounce back in 2010, with many emerging Asian markets ripe for development. Department store operators still tend to be regionally based and offer huge scope for further growth to meet the demands of an increasingly affluent and aspirational urban population in countries such as China.Reasons to Purchase *Plan international expansion effectively and assess which countries have the best growth potential whether you are a retailer or a sector supplier. *Formulate market share objectives for your company and track progress using the detailed financial and operating data for leading department stores. *Review the strategies of competitors and develop plans that respond to the opportunities and threats facing the department store sector in your region.Table of Contents : Overview 1 Summary 1 Executive Summary 2 Main conclusions 2 Recession hastens power shift to emerging markets 2 Core market declines for the fourth time in five years 2 North American market shrinks to lowest level for eight years 2 European market reduces by 6.2% in 2009 2 Japanese market declines for 13th year running 2 Market pauses for breath in Rest of the world 3 China remains the standout region … 3 … but underdevelopment will not last long 3 South Korea recovers strongly, helped by discounter links 3 Australia set for renewed growth following Myer flotation 3 Emerging Asian markets ripe for development 4 The Middle East & Africa has also grown impressively 4 Latin America suffers temporary setback 4 Sales to bounce back in 2010 but longer term prospects tough in core market 4 Rest of the world will account for over half of the dollar increase in the global market size to 2014 4 Leading retailers lose market share for third year running … 5 … and profitability varies enormously 5 Clothing remains the dominant category for department stores 5 Cross-border expansion gathers pace 5 Table of Contents 6 Table of figures 7 Table of tables 8 CHAPTER 1 MARKET ANALYSIS 9 Market definition 9 Market size 10 Market size by geographical region 12 North American dominance reduces 13 European performance mixed 13 Mergers fail to stabilize sector in Japan 13 China shrugs off global economic crisis 13 Performance mixed in Rest of Australasia 14 Latin American retailers continue expansion 14 Debt crisis to slow development in Middle East 15 Key regional indicators 15 Market breakdown by product 17 CHAPTER 2 KEY ISSUES & OUTLOOK 19 Key issues 19 International expansion 19 Franchises offer low risk rewards … 19 … but others prefer to directly own stores 20 Format development 21 Store renewal 21 Private and exclusive label development 22 Challenge from luxury brand stores 23 Growing threat from grocers and discounters 24 Further investment required online 24 Forecast to 2014 26 Core recovers, but growth will be modest 27 CHAPTER 3 EUROPE 30 Europe – restructuring to follow overexpansion exposed by recession 30 Key statistics 30 European market in context 32 Major players 33 El Corte Inglés 34 Marks & Spencer 34 Karstadt 34 Galeria Kaufhof 34 John Lewis 35 Debenhams 35 Galeries Lafayette 35 House of Fraser 35 Stockmann 36 Printemps 36 Main drivers 37 Moderate economic revival 37 International expansion 37 Store refurbishments 37 Aging population profile 37 Main inhibitors 38 Competition from value retailers 38 Merger and acquisition activity 38 Rise of luxury brand stores 38 Overexpansion 38 CHAPTER 4 JAPAN 39 Japan – effects of shrinking population will demand radical solutions 39 Key statistics 39 Japanese market in context 40 Major players 41 Isetan Mitsukoshi 41 Sogo & Seibu 42 Takashimaya 42 J Front Retailing 42 H2O 42 Main drivers 43 Mergers deliver scale benefits 43 Store investment projects under way 43 Fragile economic recovery takes hold 43 Commitment to service and quality 43 Main inhibitors 44 Demographic challenges 44 Half hearted approach to cost cutting 44 High degree of store autonomy 45 Competition from specialist retailers 45 Limited funds for investment 45 CHAPTER 5 NORTH AMERICA 46 North America – competitive pressures will force store closures 46 Key statistics 46 North American market in context 47 Major players 48 Sears 48 Macy’s 49 JCPenney 49 Kohl’s 49 Nordstrom 49 Dillard’s 50 Main drivers 50 Store portfolio expansion 50 Focus on private label 50 Instore concessions 50 Recovery in home markets 50 Main inhibitors 51 Competition from specialist retailers and discounters 51 Collapse in retail sales 51 Surge in unemployment threatens recovery 52 Store closures 52 CHAPTER 6 REST OF WORLD 53 Rest of the world – rising populations and wealthier consumers drive growth 53 Key statistics – China and rest of Australasia 53 Key statistics – Latin America and Middle East & Africa 56 China and rest of Australasia in context 58 Latin America and Middle East & Africa in context 59 Major players 60 Lotte 60 El Puerto de Liverpool 61 Hyundai 61 Shinsegae 61 Myer 62 Edgars 62 Main drivers 63 Wealthier consumers 63 Population growth 64 Flotations facilitate development 64 Franchising 65 Main inhibitors 65 Cultural and political factors 65 Competition from other formats 65 Restraints on foreign investment 65 CHAPTER 7 Company Comparisons 66 Overview 66 CHAPTER 8 Dillard’s 69 Reinvigorated board tackles turnaround 69 Recent key events 70 Four new directors 70 Buys rest of storebuilding jv it didn’t already own 70 Financials 70 Benchmarks 71 Stores 72 Outlook – pays price for poor management 73 Feuding family 73 Fresh talent in the boardroom has yet to make its mark 73 Challenge to invest unlocked capital wisely 73 Private label a source of strength 73 CHAPTER 9 El Corte Inglés 74 Needs to profit from recruitment of younger customers 74 Recent key events 75 Opens in Salamanca and abandons Almeria in favor of El Ejido 75 Opens in Oviedo, Albacete and Seville East in 2008/09 76 Financials 76 Benchmarks 77 Stores 78 Outlook – priority for new management is recovery out of recession 79 Spanish economy central to sales revival 79 Domestic expansion to slow 79 Portugal the only international outlet 79 New management should bring fresh ideas 79 Winning back younger shoppers must be a longer term priority 79 CHAPTER 10 Isetan Mitsukoshi 80 Integration after merger must not reduce focus on recovery and competition 80 Recent key events 81 Closes four smaller Mitsukoshi stores 81 Financials 82 Benchmarks 83 Stores 84 Outlook – recession and competition are the key issues 85 Merger will divert management attention from where it should be focused on real threats 85 Wise to invest in Tokyo 85 Retail brands must be kept distinct to best tackle competition 85 Private label development should be prioritized 85 International operations should be rationalized 85 CHAPTER 11 JCPenney 86 Private brands should not be overplayed 86 Recent key events 88 MNG by Mango to launch in autumn 2010 … 88 … as Liz Claiborne moves to JCP from Macy’s 88 Miracle on 33rd street 88 Rascal Flats takes American Living on tour 88 Slows store openings and accelerates Sephora rollout 88 Financials 89 Benchmarks 90 Stores 91 Outlook – exits recession in good shape to resume expansion 92 American Living launch well executed 92 JCPenney must take care not to overplay private label 92 Weathers recession better than competitors 92 Sephora tie-up works well 92 Reversion to faster store rollout likely from 2010 92 CHAPTER 12 J Front Retailing 93 New store model tailors offer to local demand 93 Recent key events 94 Opens Japan’s third largest store in Osaka … 94 … but scraps plans in north and central Japan 94 Financials 95 Benchmarks 96 Stores 97 Outlook – integration will hasten recovery 98 Looks short of target 98 New model more attractive 98 Initiatives have yet to deliver 98 Integration ahead of schedule 98 CHAPTER 13 Kohl’s 99 Should slow advance of private and exclusive labels 99 Recent key events 100 LC Lauren Conrad 100 New chairman 100 Opens 37 stores in a day 100 Opens in Anchorage 101 Jumping Beans 101 Financials 101 Benchmarks 102 Stores 103 Outlook – performs well thanks to clear strategy 104 Value credentials support sales in recession 104 Benefits from clear strategic direction 104 Will seek further expansion – but at a slower rate while it modernizes existing stores 104 Kohl’s should slow the advance of private and exclusive labels 104 CHAPTER 14 Macy’s 105 Needs to win back customers and restore profits via closure program 105 Recent key events 107 Dubai opening imminent 107 Moody’s downgrades Macy’s credit rating 107 Restructuring creates 1,200 jobs 107 $5.4bn May writedown 107 Space NK 107 $75m DC in Arizona replaces Chicago center 107 Financials 108 Benchmarks 109 Stores 110 Outlook – localization may not be the route to maximum sales 111 Recession hits Macy’s hard 111 Localization initiative shows encouraging early results, but may not be the solution 111 Private label strengths eroded in changed marketplace 111 Store closure program should be bolder 111 Macy’s needs to win back former customers 111 CHAPTER 15 Marks & Spencer 112 Furthest developed of Top 12 in international expansion 112 Recent key events 113 Marc Bolland becomes CEO 113 Carl Leaver leaves 113 Doing the right thing 113 Green credentials 113 Financials 114 Benchmarks 115 Stores 116 Outlook – ranges not yet fully in tune with aspirations of core 45+ audience 117 International business copes well with economic downturn 117 Womenswear recovery essential for UK revival 118 Brand segmentation still a problem 118 Homewares performs well 118 Investment cut 118 Profitability under further pressure 118 CHAPTER 16 Nordstrom 119 Hit hard by recession but could broaden reach through private label 119 Recent key events 120 Jewelry tie-up with film 120 Renews borrowing 120 Double reward points 120 Financials 121 Benchmarks 122 Stores 123 Outlook – scope for expansion including international 124 With such an overt premium positioning, Nordstrom has been hit hard by the downturn 124 Nordstrom has much more scope for expansion than its larger rivals 124 Private label development should be pursued more vigorously 124 CHAPTER 17 Sears 125 Needs to invest in some stores and close others to restore image and profits 125 Recent key events 127 Beauty for younger women 127 Plugs gap in toys 127 Closures 127 Interim CEO 127 Restructures 127 Financials 128 Benchmarks 129 Stores 129 Outlook – failure to invest is a strategy that needs to be reversed 131 Poorly equipped to deal with recession 131 Own brands through third parties would ultimately worsen Sears’ performance 131 Failure to appoint permanent CEO handicaps the business 131 Needs to downsize Sears estate to restore profitability 131 CHAPTER 18 Sogo & Seibu 132 Recession sparks urgency for changes that are years overdue 132 Recent key events 133 Restructuring 133 Sogo flagship in Osaka sold for $370m 133 Seibu puts gloss on image of Seven Premium food 133 Financials 134 Benchmarks 136 Stores 137 Outlook – Restructure should provide new focus 138 Sense of urgency in reaction to recession 138 Is Sogo & Seibu and Seven & i the right fit? 138 Another tough year 138 Specialty fascias should raise footfall 138 CHAPTER 19 Takashimaya 139 Merger with H2O could be speeded up 139 Recent key events 140 Uniqlo 140 Shanghai 140 Merger with H2O 140 Financials 140 Benchmarks 142 Stores 143 Outlook – strategic fit with H2O is compelling 144 Premium positioning exposes Takashimaya to the full force of the recession 144 Merger with H2O could be speeded up 144 Uniqlo tie-up carries risks 144 Should use lower cost refurbishment 144 Growth opportunities strongest overseas 144 APPENDIX 145 Statistical notes 145 Regional classification 146 Abbreviations 147 Ask the analyst 147 Verdict consulting 147 Disclaimer 147List of Tables Table 1: Main world regional categories 2009 9 Table 2: Global department store market size 2004-2009e 10 Table 3: Global department store market size by region 2004-2009e 12 Table 4: Regional market growth rates by region 2005-2009e and 2009e on 2004 12 Table 5: Key indicators by region 2009e 15 Table 6: Key space indicators by region (sq ft) 2009e 16 Table 7: Global department stores product category share 2004-2009e 17 Table 8: International store portfolios 2009 20 Table 9: Global department store market size by region 2009-2014 28 Table 10: Department store market growth 2004-2009 and 2009-2014 28 Table 11: European market overview 2010 30 Table 12: European department store market 2004-2009e 30 Table 13: European department store market 2004-2009e 31 Table 14: European department store market shares 2004-2009e 32 Table 15: European key players overview 2009 33 Table 16: European key players market shares 2009e 33 Table 17: Japanese market overview 2010 39 Table 18: Japanese department store market 2004-2009e 39 Table 19: Japanese department store market shares 2004-2009e 40 Table 20: Japanese key players overview 2009 41 Table 21: Japanese key players market shares 2009e 41 Table 22: North American market overview 2010 46 Table 23: North American department store market 2004-2009e 46 Table 24: North American department store market shares 2004-2009e 47 Table 25: North American key players overview 2009 48 Table 26: North American key players market shares 2009e 48 Table 27: US and Canadian retail sales 2004-2009e 51 Table 28: Rest of the world overview 2009 53 Table 29: China department store market 2004-2009e 53 Table 30: Rest of Australasia department store market 2004-2009e 54 Table 31: Latin America department store market 2004-2009e 56 Table 32: Middle East & Africa department store market 2004-2009e 57 Table 33: China and rest of Australasia market shares 2004-2009e 58 Table 34: Latin America and Middle East & Africa market shares 2004-2009e 59 Table 35: Rest of world key players overview 2009 60 Table 36: Developing markets index of * GDP per capita 2004-2009e 63 Table 37: Developing markets population 2004-2009e 64 Table 38: Top department stores global market shares 2004-2009e 66 Table 39: Top 12 department stores key performance indicators 2008/09 67 Table 40: Dillard’s company overview 2010 69 Table 41: Dillard’s trading record 2004-2009 70 Table 42: Dillard’s benchmarks, year to January 2008 and 2009 71 Table 43: Dillard’s store portfolio 2004-2009 72 Table 44: El Corte Inglés company overview 2010 74 Table 45: El Corte Inglés trading record 2004-2009 76 Table 46: El Corte Inglés benchmarks, year to February 2008 & 2009 77 Table 47: El Corte Inglés store portfolio 2004-2009 78 Table 48: Isetan Mitsukoshi company overview 2010 80 Table 49: Isetan Mitsukoshi trading record 2004-2009 82 Table 50: Isetan trading record 2004-2008 82 Table 51: Isetan Mitsukoshi benchmarks, year to February 2008 & 2009 83 Table 52: Mitsukoshi store portfolio 2004-2009 84 Table 53: JCPenney company overview 2010 86 Table 54: JCPenney trading record 2004-2009 89 Table 55: JCPenney benchmarks, year to January 2008 and 2009 90 Table 56: JCPenney store portfolio 2004-2009 91 Table 57: J Front Retailing company overview 2010 93 Table 58: J Front Retailing trading record 2004-2009 95 Table 59: J Front Retailing benchmarks, year to February 2008 & 2009 96 Table 60: J Front Retailing store portfolio 2004-2009 97 Table 61: Kohl’s company overview 2010 99 Table 62: Kohl’s trading record 2004-2009 101 Table 63: Kohl’s benchmarks, year to January 2008 and 2009 102 Table 64: Kohl’s store portfolio 2004-2009 103 Table 65: Macy’s company overview 2010 105 Table 66: Macy’s trading record 2004-2009 108 Table 67: Macy’s benchmarks year ending January 2008 and 2009 109 Table 68: Macy’s store portfolio 2004-2009 110 Table 69: Marks & Spencer company overview 2010 112 Table 70: Marks & Spencer trading record £m 2004-2009 114 Table 71: Marks & Spencer benchmarks, year to March 2008 & 2009 115 Table 72: Marks & Spencer store portfolio 2004-2009 116 Table 73: Marks & Spencer international store portfolio September 2009 117 Table 74: Nordstrom company overview 2010 119 Table 75: Nordstrom trading record 2004-2009 121 Table 76: Nordstrom benchmarks, year to January 2008 and 2009 122 Table 77: Nordstrom store portfolio 2004-2009 123 Table 78: Sears company overview 2010 125 Table 79: Sears trading record 2004-2009 128 Table 80: Sears benchmarks, year to January 2008 and 2009 129 Table 81: Sears store portfolio 2007/08 and 2008/09 129 Table 82: Sears store portfolio 2004-2009 130 Table 83: Sogo & Seibu company overview 2010 132 Table 84: Sogo trading record 2005-2009 134 Table 85: Seibu trading record 2005-2009 134 Table 86: Sogo & Seibu trading record 2005-2009 135 Table 87: Sogo & Seibu benchmarks, year to February 2008 & 2009 136 Table 88: Sogo & Seibu store portfolio 2005-2009 137 Table 89: Takashimaya company overview 2010 139 Table 90: Takashimaya trading record 2004-2009 141 Table 91: Takashimaya Benchmarks, year to February 2008 & 2009 142 Table 92: Takashimaya store portfolio 2004-2009 143List of Figures Figure 1: Global department store market regional share 2004 and 2009e 11 Figure 2: Global department store market split by region 2004-2009e 14 Figure 3: Global department store product category share trend 2004-09e 18 Figure 4: Index of GDP (Purchasing Power Parity) 2004-2014 26 Figure 5: Index of Population 2004-2014 27 Figure 6: Japan population change (millions) 2010-2020 44 Figure 7: US and Canadian unemployment 2005-2009e 52For More information please contact :

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