The Department Stores industry has continued its long-term decline over the five years to 2018, with revenue expected to fall at an annualized rate of 3.3% to $155.3 billion. While rising competition from e-commerce has accelerated declines, revenue contraction is primarily attributable to the increasing number of major players that have expanded their product ranges to include groceries, which transitions their revenue to the Warehouse Clubs and Supercenters industry (IBISWorld report 45291). This trend is expected to continue through 2018, with revenue anticipated to fall 2.7% over the year.

Profitability :  Deloitte analysis has shown for the UK that profitability is declining with three year average margins declining by two percentage points between 2010-11 and 2014-15. 
Retail market performance - Growing sales will not necessarily lead to a commensurate increase in profitability. Take for instance the UK where margins have remained under pressure as prices have fallen for most of the last five years.
The relentless rise of e-commerce - While the majority of purchases still take place in a store, the online channel represents a growing proportion of sales. The shift to online shopping has been driven by changing consumer behaviour, with consumers choosing to shop more and more online, increasingly via their smartphones. In a recent UK Deloitte survey we found that in the previous three months more people had shopped online than in-store.