Retail fundamentals

Department store

RETAILBOSS ReferenceUpdated November 2, 2026

A department store sells multiple categories of merchandise through distinct departments, commonly including clothing, beauty, accessories and home goods.

How it works in retail

Departments may be managed by the retailer or operated through concessions. The store’s assortment, price positioning and service model determine its customer proposition.

A retail example

A shopper can buy a coat, fragrance and bedding from separate departments within the same store.

What to keep in mind

A department store is a retail format; it is not a synonym for a shopping mall, which houses multiple separate businesses.

Examples are illustrative. Terminology and measurement conventions can vary by business and market.

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