Department Stores NAICS 455110

May 7, 2026 - Department Stores Among Top Mother's Day Gift Retailers

• Department stores are tied with online retailers as the leading shopping destination for Mother’s Day purchases this year, according to data from the National Retail Federation, highlighting a potential sales lift for the US department store industry. NRF projects total Mother’s Day spending will reach a record $38 billion in 2026, with consumers expected to spend an average of $284.25 per person. Strong demand for jewelry, clothing accessories, greeting cards, and gifts could benefit department stores, which typically carry a broad range of holiday merchandise. The report also found consumers are prioritizing unique and memorable gifts despite economic uncertainty, which may help support department store traffic and promotional activity during the holiday shopping period.
• According to a Retail Dive report, Nordstrom’s decision to close two full-line department stores despite reporting strong 2025 sales highlights ongoing pressure within the US department store industry to optimize store fleets and prioritize growth segments. While Nordstrom reported nearly $16 billion in sales and its strongest comparable sales growth in over a decade, the retailer is continuing to shift investment toward its off-price Rack business, with 23 new Rack stores planned for 2026. The move reflects a broader industry trend in which department stores reduce reliance on large mall-based locations while expanding off-price formats that attract value-focused shoppers and drive customer acquisition. The closures also underscore continued challenges for traditional department store footprints even as some retailers benefit from disruption among competitors like Saks Fifth Avenue and Neiman Marcus.

• April 2026 consumer surveys from the Conference Board and University of Michigan indicate a more cautious environment for the US department store industry. The Conference Board’s Consumer Confidence Index rose slightly to 92.8, reflecting some resilience in perceptions of jobs and income. However, the University of Michigan’s Consumer Sentiment Index remained weak at 49.8 as inflation and financial concerns continued to weigh on households. For department stores, weaker sentiment and rising price sensitivity could slow discretionary spending on apparel, home goods, and other nonessential categories. The softer consumer outlook may increase promotional pressure across the sector as retailers compete for value-focused shoppers and work to maintain traffic and sales growth.
• The US department store industry faces continued tariff uncertainty despite the Supreme Court striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), according to a report in Retail Dive. The ruling reduced the average effective US tariff rate from 16% to 9.1%, potentially lowering sourcing costs for retailers reliant on global supply chains. However, the administration quickly introduced new tariffs under Section 122, including a 10% surcharge on imports, with plans to raise it to 15% for up to 150 days, pushing the effective rate back to 13.7%. While the decision could allow retailers to seek tariff refunds, analysts say reimbursements are uncertain and likely delayed by litigation. For department stores, categories such as furniture, footwear, sporting goods, and toys, key merchandise segments, were among the most negatively affected by prior tariffs and could benefit most from reductions. Overall, the ruling improves trade predictability but maintains cost volatility for retailers managing global sourcing and pricing strategies.