Department Stores Lose Aggregation Role Online

Karen Webster argues that by 2026 department stores have lost their core aggregation and discovery role, as online channels—marketplaces, search engines, social feeds and AI agents—now organize consumer choice at scale. Citing a drop from 14.5% of U.S. retail sales in 1990 to 0.5% in 2024, rising mall vacancy, and a 2026 digital crossover, she says stores become fulfillment and showroom execution points.