Kohl’s, J.C. Penney and — once again— Saks Fifth Avenue have a lot riding on this year’s shopping season.

Department stores are in their element at the holidays, but this year the season will serve as a key test for three major players.

The vast array of merchandise at department stores provides shoppers with the opportunity to check a lot off their lists. And they traditionally lean into the season with decorations, window displays and events to lure customers in. As a result, these retailers are poised to be among the top destinations this year for browsing and purchasing products, according to Simon-Kucher’s 2026 Holiday Shopping Report.

“People like department stores,” Michael Appel, president of Appel Associates, said by phone. “The department store format, outside the United States, is working very well.”

A number of retailers in the space in recent years have worked to return to the glory days of the model, with varying degrees of success. Analysts credit Dillard’s dedication to retail fundamentals for its consistent, if somewhat lukewarm, results; in its most recent quarter, the regional department store managed to gain market share. Under CEO Tony Spring, Macy’s has demonstrated clear signs of a turnaround, and Bloomingdale’s has thrived. Nordstrom, now under private ownership, also seems to be doing well, though it no longer has to report on its performance.

C. Penney and Saks Fifth Avenue — all have a lot at stake during retail’s “golden quarter” this year, analysts say. They are being closely watched for signs of stabilization, according to Glenn McMahon, partner at MAC Advisory and Consulting.

Source link