Department Store Industry

1: INDUSTRY OVERVIEW: DEPARTMENT STORES

Department stores are large retail outlets that contain numerous individual shops, providing a wide range of product lines. Department stores most oftentimes consist of the following product categories:

1)      Food

2)      Cosmetics

3)      Shoes and Accessories

4)      Clothing

5)      Interior Décor

6)      Restaurants

Depending on the type of department store, department stores can offer a much wider range of products, including furniture, toys, electronics, books, etc.

Department stores come in a wide range of qualities and prices. There are such things as “high-end department stores”, which would focus purely on offering high-profile brands and products, while there are more mass-market targeting department stores, which are more likely to include a wider range of products, including practical household products.

That said, department stores will oftentimes try to cater to specific types of market segments. Particularly in the case of department stores in large cities, each department store will try to position itself differently from its direct and nearby competitors: some will try to cater to younger generations, while some will try to cater to the older generations. Some will try to cater to those interested in mainstream brands, while others will focus more on boutique, independent brands.

In the US, the department store industry includes approximately 20 companies operating roughly 3,500 stores. Major department stores in the US include: Sears, JCPenney, Macy’s, and Dillard’s. The industry earns an annual revenue of around $60 billion USD, 95% of which is earned by the largest 8 companies in the industry.

Some links about the industry:

http://en.wikipedia.org/wiki/Department_store

http://vspages.com/mall-vs-department-store-5580/

http://en.wikipedia.org/wiki/Shopping_mall

http://www.hoovers.com/industry/department-stores/1529-1.html

 

SPACE

2a: Implicit or Explicit?

From the department store owner’s standpoint, I would say that space is often sold explicitly, as they would charge the tenants per the size of the lease space. On the other hand, for stalls or booths set up in more open areas of the department store, space may be considered more implicit, as these spaces may be sold with less correlation to the exact size of the space.

2b: Ways of Splitting Space

Department stores have different types of spaces within the building that cater to their customers. The most typical type is the space split by fixed walls into one unit, and can usually be shut off or closed by a door or a shutter. These spaces cannot easily be adjusted in terms of size and layout without investment of significant time and money. These fixed spaces are generally leased out to a specific brand or company, such as Zara, Coach, Burberry, etc.

 

Then there is the semi-fixed space, such as the department store areas dedicated to selling cosmetics or shoes. These are oftentimes open areas in which a specific brand or merchandising line take up certain spaces, but are not divided up by physical walls or entryways. These areas are much more flexible in terms of changing the products being handled, given that one area can easily be changed to carry one brand/line from another; however, certain fixtures used for the displays will be fixed, and hence less flexible to change from a layout perspective.

 

There is also open space, in which temporary booths or stalls are built to sell a smaller line of products or services.

Different from other uses of store space is the use of space to purely focus on selling experiential services. For department stores, the focus generally remains on selling physical products. However, there are rare instances when space is allocated to selling services—one case being when department stores are attached to movie theaters.

 

 

 

 

 

 

 

 

 

 

 

 

2c: Creating Additional Revenue

One of the most standard ways for department stores to create additional revenue is by holding major seasonal sales. Because the product life cycle of clothes tends to be fairly short, many stores have inventory left over by the time they have to replace old products with new products. Having a highly publicized sale allows for these leftover products to be sold, be it at a lower price than its retail value.

One key to making people spend more money is to convince people to stay out shopping longer. A way to do this is to provide adequate opportunity for people to take a break from shopping and rest. Many department stores provide these venues by creating food courts—or in high-end places by providing patisseries or coffee shops at which people can recharge before going back to shop some more.

I also think one of the more creative ways in which department stores have used their space to create additional revenue is through creative use of its open space. Another approach department stores can use to bring people to their stores is to provide an additional incentive to go to that location. A common approach used to achieve this in the U.S. has been to create playgrounds in the open areas of the department stores. This service often incentivizes families to go to a department store, simply because it allows an opportunity for their children to play.

 One more approach commonly used in Japanese department stores to bring more people to the site is to host certain “festivals” or special events in their open space. For example, department stores would often host weekly “mini fairs” on either the ground floor or the top floor, in which one area of the department store would be devoted to hosting jewelry/clothes/food from brands and shops that usually were not represented at the department store. The content would be changed frequently, and the department store would often be able to bring new people into the store by publicizing new, limited-time genres of offerings at their store.

2d: Potential New Ways of Splitting Space

There are several different directions department stores could potentially go in terms of splitting space differently. One direction would be to use space to create more personalized services to customers. Many of the spaces in department stores are “public”, but allocating a portion of space at high-end stores to allow for “private” space may allow for varying experiences for customers. Customers would be charged a premium for making use of these private spaces.

Another potential use may be to make the spaces more flexible. Instead of sticking with a model that leans heavily toward having “fixed” spaces, changing to a model in which it would be much simpler, cheaper, and quicker to change tenants may be an attractive approach for department stores that are pursuing a more trendy, up-to-date feel.

3: TIME

3a: Implicit or Explicit?

Department stores generally sell time implicitly: this is because the product being sold generally isn’t associated with a particular time limit. For example, it is not like a massage, where you are buying 60 minutes worth of service. The transaction is associated with a physical product unattached to time.

3c: Selling Time Explicitly

Time is currently being sold explicitly at certain department stores, although these cases are generally not a reflection of its overall business model. For example, some department stores may include shops that offer time-explicit services. Some department stores have massage shops, which are time-based service sales.

 As another example, some department stores in Japan have small football fields on their rooftops, which people can rent out on an hourly basis.

(http://www.futaba-sp.com/omiya/2010/03/post-23.html)

 

 

Some department stores also include game centers for children—some of these entertainment options include machines that run for a set period of time per game.

 

 

 

Department stores will often have restaurants on one of their floors. These restaurants can often choose to set time limits to each group of customers (ex. 2hr limit) to be able to take in more customers during peak times.

(http://www.mitokeisei.co.jp/shop/10_skygarden/11keizan.html)

 

 

 

3d: Creative Things to do with Time

There are a couple things that could be done creatively with time—some of which may already be being done to varying lengths at department stores. One might be to offer some sort of benefit if a certain amount of time is spent within the department store. For example, if a customer was to receive certain benefits if they stayed for 5 hours at a department store on an off-peak day, this could incentivize customers to spend more money during their wait time, and this could also help to improve the image of the department store by maintaining more customers.

 

Another thing they might potentially consider doing is to include shops that provide rental services. Some shops may already do tuxedo/dress rentals, which would be time-based; they could potentially take this further by doing time-based rentals of other high-end luxury clothes and accessories.

4a/b: Physical and Non-Physical Rate Fences

Below are several examples of physical rate fences (owner-tenant relationships are more likely to be involved with physical rate fences than the tenant-customer relationships)

  • (Owner-tenant POV) Depending on the size of the space being rented, owners can choose to increase or decrease the rates
  • (Owner-tenant POV) Certain areas of a department store are likely to be more popular/convenient; hence an owner can charge more depending on the location of the space within the store (http://www.ehow.com/facts_6313023_average-retail-lease_.html)
  • (Tenant-customer POV) For services such as restaurants within the department store, tenants can set rates by charging differently between open areas and private rooms

In terms of non-physical rate fences, I would say that there are many opportunities to create rate fences, depending on the type of service/product the store sells. There are also several opportunities within the owner-tenant relationship:

  • (Owner-tenant POV) Depending on the lease period, the owner can set different rates to charge the tenant
  • (Owner-tenant POV) Depending on the credibility/attractiveness of the tenant, the owner can set different rates
  • (Tenant-customer POV) Depending on the quality of the product, functionality of the product, or time/length of the service, rates can be set differently. There is an enormously wide range of examples of this in department stores. A Gap outlet, for example, may sell a tank top for $10, while a Burberry outlet would sell a similar styled tank top for $150. Similarly, a cell phone with 3G functionality may sell at a cell phone provider outlet at a certain price, while a phone with 4G functionality would sell at a much higher price.

4c: Creative Ways to Set Rate Fences

Some ways I can think of setting rate fences creatively is to perhaps offer more intangible services—rather than just the physical products. For example, an I Love Bangkok t-shirt may only cost $5 at the actual retail shop, but if the customer already knows what he/she wants, but doesn’t want to make the trip up 7 floors and 5 minutes of walking to get there, the store could potentially charge an extra $1 to have the t-shirt brought down to the concierge desk of the department store for a quick pick-up.

179,716 thoughts on “Department Store Industry

  1. best hobs uk
    Which Hobs and Ovens Are Right For You?

    When comes to hobs and ovens there are a myriad of types to choose from. Which is the best for you?

    Gas hobs are well-known for their quick heat and precise flame control. They work with all types of cookware, and are perfect for frying things that require preci

  2. Azacitidine
    Introduction Cervical cancer (CC) is a major health threat to women worldwide. Long non-coding RNA (lncRNA) has been reported to play crucial roles in regulating carcinogenesis, including CC. Methods In this work, levels of lncRNA forkhead box P4 antisense RNA 1 (FOXP4-AS1) in CC cell lines and normal cell lines were analyzed with quantitative Real-Time Polymerase Chain Reaction (qRT-PCR) method. Effect

  3. advice here
    How to Choose the Right Oven and Hob for Your Kitchen

    We offer a variety of sizes, styles and features that can be adapted to any kitchen.

    Generally simple to use and hard-wearing solid plate hobs are sealed metal plates that cook your cookware. They’re good for flat-based items and can be economical t

  4. Evofosfamide
    We report a case of suspected covid-19 with widespread PE and a long history of dyspnea but no other symptoms. In our case slight hypoxia and laboratory testing indicated significant disease, which was proven with contrast angiography. This case shows that PE is a differential diagnosis in non-hospitalized symptomatic Covid-19 with persisting breathing problems.

    Long-term breathing difficulties might

  5. mercedes benz car key replacement
    Buying a Mercedes Car Key

    The possession of a Mercedes is like owning an original work of art, and comes with a lot of amazing features. However, it’s not a very cheap thing to own.

    There are many options to replace your car key in the event that you lose it. Amazon is the most affordable choice.

    <b

  6. ch7
    But envision the dealer and the guitarist happens to draw cards which are of equal value? Goes on frequently so it is any deck of 52 cards used. Actual truth is that Casino War game starts when either the player or the casino dealer goes to war or perhaps forced to surrender.

    So you have decided your casino now the language? The casino is full of how to gamble with your money some ways can be very profitable and methods

  7. mercedes replacement keys
    How to Find a Replacement Mercedes Key Near Me

    There are a variety of alternatives to replace your Mercedes key if you have lost it. Amazon provides a key replacement.

    They are less expensive than the ones made by Mercedes and can be shipped to you. But, you must be sure that the Mercedes key you buy from Amazon is equipped w

  8. ch7 club
    The merits of a best online casino does not give you the vexation of traveling lots to chance. Though famous and plush, the Casinos of Sin city are not easily reached by many. Online gambling is possible with the touch of one’s finger anyone do not need to journey at all looking for that best online casino perform.

    The casino Royale has several restaurants on site, starting the Outback Steakhouse, which is great

  9. https://www.selleckchem.com/products/apx2009.html
    Bariatric surgery is a treatment option for those affected by severe obesity. This study investigated changes in gut microbiota and serum biomarkers after laparoscopic sleeve gastrectomy (LSG).

    A total of 126 patients with morbid obesity who underwent LSG were enrolled in this study. Routine biochemical tests, hormonal (insulin and glucagon),

  10. Onametostat purchase
    There is a lack of evidence about the best approach for cavitated caries lesions with the possibility of pulpal involvement in primary teeth. Thus, the present authors aimed to verify the best treatment for deep caries lesions with or without pulp involvement in primary teeth. The search was conducted in MEDLINE/Pubmed and Web of Science databases until May 2020. Studies that compared techniques to manage

  11. My Web Site sectionals for sale near me
    Rooms to Go Sofa Sale

    The right furniture is vital to the design process, regardless of whether you’re starting from scratch or updating your home’s style. Rooms to Go provides an array of stylish and comfortable sofas to match your home. Shop the Drew & Jonathan for Rooms to Go collection for contemporary elegance in your living space.

  12. tải ch7
    Well, it’s good to know that you’re able to win money at internet casinos. In fact, people get it done every holiday weekend. I keep in contact with real gamblers on a day-to-day basis and perform win fund. Sometimes, they win lots dollars. Every once in a while, I even read legitimate news stories about people possess won jackpots worth over the million greenbacks.

    Winning the fourth bet may never be using $120.

  13. wood burning stoves ideas
    Buying a Large Wood Burning Stove

    A large wood burning stove can be an efficient method of heating a home. However, there are a few factors to take into consideration prior to buying a stove. Take into consideration the size of your fireplace and the ash drawer.

  14. visit this backlink
    How Hobs Transform Your Kitchen

    Hobs can completely transform your kitchen. There are numerous choices to pick from, whether you want an old-fashioned or contemporary design.

    Induction hobs warm up quickly and respond quickly to temperature changes. They also come with f

  15. power tool near me
    Power Tools Cheap – Tips For Buying Power Tools Cheap

    The purchase of power tools at a low cost is essential for DIY enthusiasts and homeowners. It is important to strike an equilibrium between quality and price.

    To protect your investment Choose a brand that offers a solid warranty. Also, consi

  16. visit this backlink
    The Best Ovens and Hobs

    The top ovens, cooktops, and hobs will save you time and effort in the kitchen. They’re designed to assist you cook more delicious meals including perfect roasties, fluffy cakes and fast pasta dishes.

    You should also look for models that have inte

  17. mines game online
    Mines Betting Strategy

    Mines betting is a thrilling, enjoyable game that is easy to play. It’s a crash game however it differs in that you have the option to decide when to cash out.

    First, set the bet amount. Select the number of mines you would like to play from 1 to 24. The higher the

  18. mercedes benz car key replacement
    Tricks to Unlock the Trunk With a Mercedes Key Fob

    A key fob from Mercedes allows you to unlock your doors and start your vehicle directly from the driver’s seat. It also has an alarm button that locks all doors and activates your alarm system.

    If you’re experiencing difficulty with your Mercedes k

  19. NVP-BSK805 solubility dmso
    The end-of-life management practices were identified as the most critical factor, and information technology was identified as the least critical factor. We further determined the end-of-life management practices and policy have the strongest casual relationship. The municipal PCP coordinators can use the findings of this study to formulate mitigating strategies to identify and eliminate barriers to th

  20. ch7 club
    More individuals are losing their jobs than ever before. Lots of consumers are considering alternate career paths, or even additional tactics pertaining to other areas to ensure that the best associated with finding a position in the future if things get rocky. With the economic downfall many of folks are in search of supplemental incomes through in someones free time jobs. I really believe if you are going to find extra work, it end up being fun. Th

  21. mines game online
    Mines Gamble – A Closer Look

    The payouts on Mining gambling games can be high, but you should be aware that you must cash Out following a winning streak. It’s also an excellent idea to mix up the bets based on your performance.

    A website that is not centrally managed is always a great option. This wi

  22. power tools uk
    Power Tools – What You Need to Know

    Power tools can be used to accomplish a variety of tasks, from basic DIY projects to large construction projects. Common power tools include drills, saws, hammers and sanders.

    Power tools can be expensive, howeve

  23. Erdafitinib price
    Chronic pain is one of the most common and interfering symptoms experienced by people with MS. There is an opportunity to shift the paradigm from interventions delivered after pain has become chronic to early, proactive interventions to alter the impact of MS-related pain. The purpose of this study was to develop and test a remotely delivered single-session group intervention to modify the pain tr

  24. modern leather sofa Sofas And Couches
    A Leather Modular Sofa is a Sleek, Sophisticated Seating Solution

    A leather modular couch is a fashionable, elegant seating option. They are space-saving, can be used to create an area divider and are comfortable.

    Modular couches can also be moved more quickly than tradition

  25. mines gamble
    Mines Game Online

    The Mines game is an exciting and rewarding experience. The players must explore a dark 5×5 grid with explosive mines and dangerous diamonds. If they uncover all the safe tiles they will receive winnings that are equivalent to the stake they have placed.

    The multiplier is determin

  26. Topitriol
    The seminiferous tubules are loosely arranged and the spermatocytes are more than spermatozoon in the 0.5 μg/g body weight treatment dose. This current study suggests a new path to obtain neo-females through siRNA silencing.We report here two cases of membranoproliferative glomerulonephritis that developed during treatment of rheumatoid arthritis with tocilizumab. In both cases, the initial findings we

  27. gas safety engineer milton keynes
    Gas Safety Certificates For Landlords

    Landlords are legally obliged to obtain gas safety certificates for their rental properties. These inspections allow tenants to live in the rental property with confidence knowing that it is in compliance with all safety guidelines.

  28. power tools uk
    Power Tool Superstore Review

    Superstores for power tools are a great place to find a variety of tools for any job. You can also save money by purchasing the tools as a package.

    Place your tools in a location which is dry, to avoid moisture. This will prolong the battery’s life and help in keeping it.

    All U.S.A. Orders Qualify fo

  29. wood burning stoves ideas
    Installing Small Woodburners Safely

    A small woodburner will add warmth to any home no matter if it’s small or an outdoor cabin. There are some rules you must follow in order to set up your stove in a safe manner.

    These rules require certain distances between the stove and the combustible material. This guide is here to assist you.
    <br

  30. Rabusertib
    Infection is one of the most commonly described complications, and a major cause of morbidity and mortality in pediatric patients treated using central venous catheters (CVCs). Taurolidine lock solutions have been used to decrease catheter-related bloodstream infections (CRBSIs) in both adult and pediatric patients. The purpose of this study was to systematically search the literature and conduct a meta-analysis

  31. lost mercedes keys to car
    How to Lower Your Mercedes Spare Key Cost

    If you own a Mercedes, you are probably familiar with the price of replacing the key. Fortunately, there are ways to cut down on the cost of replacements.

    The first option is to purchase an entirely new key from the dealership. Howe

  32. Sofas & Couches
    How to Identify Genuine Leather Sofas

    Real leather furniture is long-lasting and timeless. However, identifying genuine leather sofas from “split,” “bonded,” and faux (fake) leather options can be tricky.

    Check for rough or uneven edges that indicate the leather is genuine. Genuine leather may also have

  33. selleck
    The scaffold chemical composition and pore architecture are critical for successful bone regeneration. Although the effects of chemical composition, micron-scale pores, and macropores (≥100 μm) are known, those of nanometer-scale pores (nanopores) are unknown. Here, honeycomb scaffolds (HCSs) composed of carbonate apatite and bone mineral, were fabricated with three distinct nanopore volumes, while other parameters were com

  34. find more
    Then, after removing the hard internal structure with the aid of an operative microscope, MTA was used to close the immature apex. Finally, the large endodontic space was filled with self-etching, self-adhesive, dual curing resin cement. The patient was included in a follow-up programme to monitor and verify the complete healing of the periapical bone of the affected tooth.

    The use

  35. https://thor311.id/
    supaya lantas anda rasakan keuntungan dan kemenangannya dari perjudian slots online yang anda melakukan jadi anda mesti yakinkan pahami berapakah kiat dan taktik. kita mesti mengawalinya dari penentuan agen yang cocok sebab apabila kita bisa memastikan opsi agen yang benar, kita segera bisa gampang juga mendapati banyak keuntungan lainnya. kita akan mencapai kemenangan dengan simpel kalau kita masuk di salah satunya opsi agen yang pas.

  36. http://www.sofasandcouches.com
    Why a Leather Sofa Is a Wise Investment

    When choosing your next couch be sure to consider the numerous factors that make leather an excellent choice. You can then make a confident choice of the most appropriate sofa for your home.

    Leather does not attract odors. This is great for people

  37. IACS-13909
    Population size estimation is performed for several reasons including disease surveillance and control, for example to design adequate control strategies such as vaccination programs or to estimate a vaccination campaign coverage. In this study, we aimed at investigating the possibility of using Unmanned Aerial Vehicles (UAV) to estimate the size of free-roaming domestic dog (FRDD) populations and compare the results

  38. gas safety engineer milton keynes
    What is a Landlord Gas Safety Certificate?

    Landlords are required to have their property regularly inspected by a Gas Safe registered engineer. They must also provide copies to their tenants on request.

    During the inspection, the en

  39. tải ch7
    Once you could have decided extra flab to join the world of online gambling and you have gotten your computer with an internet connection you are almost at that point. This is still not past too far to contemplate turning back to you. However, if you decided to be able to ahead there are a few things you need to bear from heart.

    Once you decide on a table and a seat receives at the table, learn how to post the hard

  40. Src inhibitor
    Gathering of uncultivated food from green spaces, also known as foraging, is observed in urban areas across the world, but the literature focuses predominantly on the global north. Our study examines the existing urban land management structure and its approach to urban foraging in the eastern coastal region of South Africa. Through interviews with municipal officials in nine cities, we identified different stakeholde

  41. childrens bunk beds with slide
    childrens bunk bed with desk With Mattresses Must Be Safe

    Bunk beds can be a fantastic space-saving solution. However, the most important thing to remember is that bunk beds that have stairs or ladders should be securely fastened and made of durable materials to ensure security.

    <br

  42. see more
    The lamellar microstructure demonstrates excellent fracture toughness due to deflection of the crack propagation path.Urinary bladder matrix (UBM) is one of the most studied extracellular matrixes (ECM) in the tissue engineering field. Although almost all of the UBM hydrogels were prepared by using peracetic acid (PAA), recent studies indicated that PAA was not a trustworthy way to decellularize UBM. A stronger detergent, s

  43. learn more
    positive charges. Unlike existing single-legged DNA walkers, our single-legged DNA walkers do not require complex processes, such as immobilization of the walker DNA strand on the tracks and precise adjustment of the sequence of walker DNA. Therefore, our strategy, based on the creation of diffusion-limited nanointerfaces, has enormous potential for the applications of single-legged DNA walkers to biosensors, bioimagin

  44. ile kosztuje prawo jazdy na skuter?
    Obtaining Your Driving License A1

    A driver’s license is an important document that formally allows you to drive. prawo jazdy b1 must enroll in driving school and pass written and physical tests.

    A1 is the earliest category of driving licence that allows you to operate a motorbike with 125

  45. great site sofa sets for sale
    Buying a Sectional Sofa Sale

    A sectional sofa can be an excellent option if you are hosting a large group or simply want more seating. Before you purchase a sofa, you must think about the size of the space and the way it will be used.

    Consider a modular sectional in order to enhance your flexibility. It’s simple to move it around and re-arrange it

  46. ch7 club
    should look into taking good welcome bonus from online casinos when the actual first is offered. Why not, it’s free money, take the game! If you read the fine print, pay focus to the particularly these, many may have higher restrictions than others for claiming your welcome bonus. A particular welcome bonus is anything over $7,000. Most will mention that the bonus is opened up across a 2 to five deposits. Typically the bonus, the more payments it ought

  47. Linsitinib solubility dmso
    The interannual variability of the Asian summer monsoon has significant impacts on Asian society. Advances in climate modelling have enabled us to make useful predictions of the seasonal Asian summer monsoon up to approximately half a year ahead, but long-range predictions remain challenging. Here, using a 52-member large ensemble hindcast experiment spanning 1980-2016, we show that a state-of-the-art cli

  48. https://hokiactive.com/
    cari situs slots online terhebat di indonesia bukan perihal yang susah sebab saat ini udah ada sangat banyak alternatif situs slots yang siap serta dapat kita tentukan satu diantaranya. akan tetapi banyak sekali antara lain sangkanya yang belum ketahui serta belum pahami mengenai kualitas serta ciri-ciri dari web-site yang terhebat itu seperti apakah. dalam masalah ini ada baiknya mereka dapat pelajari dengan detil serta lebih masak

  49. Mepazine
    With regard to the intensity modulated radiotherapy (IMRT) of nasopharyngeal carcinoma (NPC) patients, this longitudinal study evaluated the radiation-induced changes in the parotid and submandibular glands in terms of gland size, echogenicity and haemodynamic parameters.

    21 NPC patients treated by IMRT underwent MRI and ultrasound scans before radiotherapy, and at 6,

  50. testing adhd in adults
    ADHD Tests For Adults

    ASKING your primary care physician to refer you to an evaluator who performs ADHD tests for adults is a great idea. You can also inquire with your insurance provider or a hospital that is affiliated with a university to find one within your region.

Leave a Reply

Your email address will not be published. Required fields are marked *