by

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.

315,412 thoughts on “Department Store Industry”

  1. 債務重組信貸評級
    在電流中快節奏的地球儀，財務挑戰可能出乎意料，領導很多人進入迷宮的債務，似乎無法克服。理解減輕這種負擔的可能性是必不可少的。是最大的有效的解決方案是IVA（個人自願安排）債務重組，DRP（債務系統）這當然是鬆了一口氣，更多嚴重的案件，破產。其中的每一個路徑提供不同的優勢當然會的充當一個期望的燈塔想要恢復控制他們的日常生活是經濟的。

    一個人自願安排（IVA）債務重組涉及一項協議這當然是兩者之間的正式你和你的債權人。它讓你償還一部分你的債務多於時間表這當然是特別是跨越五到六年。該合同可以大大減少你的將軍債務並提供一種方法那是系統還款。優勢那是伊瓦少校可能是保護它提供違反債權人的適當措施，提供你有些放心作為你目標經濟安全。

  3. mines game online
    What to Look For in a Casino Mines Site

    The Casino project, located south of Dawson City and west of Pelly Crossing is the largest mining project in Yukon history. It is an open-pit copper and gold mine that will utilize conventional milling and heap leaching.

    The excitement in this

  6. autowatch ghost immobiliser
    Ghost 2 Immobiliser Installation

    Installing the ghost 2 immobiliser is a quick and effective way to secure your vehicle against theft. It is directly connected to the CAN network of your vehicle and is virtually unnoticeable.

    First, identify an uninterrupted power

  8. vpn iphone

    In today’s digital world, staying connected while keeping your data secure is essential. That’s where 快连VPN comes into play. This VPN is designed to offer users a safe and easy way to access the internet. With (Quick Connect VPN Download), you can break through barriers and enjoy a smooth browsing experience.

    What Is 快连VPN?

    快连VPN is a virtual private n

  9. RepairMyWindowsAndDoors
    Boarding Up a Doorway

    Boarding up a doorway keeps hail, snow and rain from further destroying the property. It also keeps scavengers and vandals from the area.

    Doors are more secure than windows, but they are still susceptible to being broken or kicked into. They should be secured with sturdy frames for

  12. https://corncurrent.com/
    Saat ini ini lebih banyak bandar serta biro judi bola online bisa dipercaya di Indonesia yang dapat diputuskan dengan entengnya oleh beberapa betaruh. Akan tetapi gak semua mengerti dengan ciri-ciri inti dari sebuah broker judi bola online yang dapat diyakini. Oleh karena itu, betaruh harus mendalami kayak apakah ciri-ciri yang menempel di sebuah bandar dan bandar judi bola online bisa dipercaya di Indonesia.

    Se

  13. https://articlescad.com/seo-20-trailblazers-leading-the-way-in-seo-2-219470.html
    進入繁華的市場這當然是數字競爭激烈，注意力跨越了，很棒產品或服務不是足夠長。進入搜索引擎營銷（SEO成分是） – seo agency hong kong 。這個故事圍繞著一個小，家族餐廳那是意大利“ Trattoria Bella”，發現了變革力的力量搜索引擎營銷。

    Trattoria Bella完成在當地人中眾所周知因為它正宗的意大利面菜和溫暖，熱情的氣氛。但是，儘管社區的存在很強，但餐廳還是面臨著挑戰那是重要的曾經實際上是隱藏的新客戶試圖找到就餐選擇在線的。大師馬可（Marco）意識到沒有在線的強大存在這些是通過到達可能依靠的顧客搜尋引擎引導他們的食物替代

  14. symptoms of ADHD in adults women
    Signs and Symptoms of ADHD in Adults

    Many people who suffer from ADHD are not aware they suffer from it. They may have difficulty staying on top of their schedules, keep track of appointments or arrive on time for work.

    Doctors diagnose ADHD by

  17. Schneider distributor
    In today’s dynamic and competitive marketplace, the role of distributors has never been more crucial. Eaton distributors serve as a vital link between the manufacturer and the end-user, ensuring that top-quality products reach those who need them most. As businesses across various sectors strive for efficiency and innovation, these distributors are at the forefront, providing essential support and expertise that drive success.

  18. gas safety milton keynes
    Gas Safe Milton Keynes

    All Gas Safe qualified engineers will carry a photo ID at all times. Make sure you have it in hand prior to allowing them to work on your property.

    A man operating as director of Master Plumbing Contractors Ltd was sent

  20. data visualization services
    Data visualization services: In today’s data-driven world, a chance to transform raw data in to meaningful insights will be more crucial than in the past. Organizations are overwhelmed with vast sums info, making this essential to adopt effective strategies intended for making sense associated with it all. This is how data visualization Services come into enjoy, enabling businesses

  21. Best ovens UK
    How to Find the Best Oven uk

    Whether you’re baking cakes, roasting chicken or trying your hand at any other difficult recipe, you’ll require an oven that’s reliable. But with so many different models out there How do you choose the best oven for you?

    This Bosch comes with a variety of additional features, lik

  22. permis d
    What is a B1 Driving License?

    You must pass a knowledge test and an aptitude test before you can apply for an endorsement to your license. You may also be required to pay for fees and take a health test.

    A b1 license lets you drive vehicles that have a maximum weight of 3,500 kilograms and no more than eight people in addition to the dri

  24. Gas safety certificates milton keynes
    Why Landlords Need to Get a Gas Certificate

    A gas certificate is a document issued by a certified gas safe engineer following conducting a thorough inspection of the property’s gas appliances. It is a legal requirement for landlords to have their property gas installations and flues inspected annually.

  27. casino mines
    Mines Game Online

    As with any casino game, players should gamble responsibly. Only play with money you are able to afford losing and play with amounts that you can afford to lose. Many platforms have tools to help manage gambling habits, such as deposit limits and self-exclusion options.

    <b

  29. ovens uk
    Finding the Best Oven For Your Home

    The best oven for your family can be a great way to make delicious meals, whether you’re an experienced cook or a novice. Different models offer a range of features and cooking modes.

    This Beko model has a dazzling range of functions, including the dough-proving setting. I

  30. ENOblock manufacturer
    hange in route of administration from repeated intrathecal administration to oral medication.

    Improvements in motor/breathing function, broad indication, oral or one-time infusion, and minimal risk were preferred treatment attributes. Treatment decisions should be made in clinical context and be tailored to patient needs.

    Improvements in motor

  32. best oven uk
    How to Choose an Oven That Meets Your Cooking Needs

    Over the years ovens have evolved in terms of design and functionality. There are now ovens with self-cleaning oven lines.

    These lines heat up the interior of the oven, which is beneficial for cleaning. Certain models come with a timer which can be set independent of the

  34. annual gas safety check milton keynes
    Heating Engineer Milton Keynes

    If you require an expert in heating and plumbing in Milton Keynes for any plumbing or gas issue, you can count on us to respond quickly and professionally. All of our engineers are Gas Safe Registered so you can be assured of a safe service

  35. INCB39110
    Circulating cell-free DNA (cfDNA) is a promising biomarker for the diagnosis and prognosis of many diseases, including cancer. The genome-wide non-random fragmentation patterns of cfDNA are associated with the nucleosomal protection, epigenetic environment, and gene expression in the cell types that contributed to cfDNA. However, current progress on the development of computational methods and understanding o

  37. casino mines
    How to Play BTC Mines

    Many online casinos offer Mines in the demo mode, which lets players play the game without risking their real money. Beginners should try this out to understand the rules and develop strategies.

    , designed by Spribe (a developer who develops mini games for casinos that us

  38. Narożniki
    to niezwykle istotny element każdego salonu, który nie tylko pełni funkcję praktyczną, ale również nadaje wnętrzu wyjątkowy charakter. Wybór odpowiedniego narożnika może wpłynąć na cały klimat pomieszczenia, odzwierciedlając styl właścicieli oraz ich potrzeby. W dzisiejszych czasach, kiedy przestrzeń mieszkalna często jest ograniczona, narożniki zyskują na popularności, oferując k

  41. Highly recommended Internet page
    Double Glazing Lock Repairs

    The use of high-quality locks on your doors and windows will stop burglars from gaining access to your home. Generally, they don’t like breaking glass or squeezing through windows that are not closed.

    However, some double glazing owners have encountered problems

  43. try these guys out
    According to bankruptcy lawyers the primary group of people that have access to a person’s bankruptcy information are the creditors. Anyone that you owe money to can explore your documentation. Credit cards, mortgage holders, automobile loans, signature loans and student education loans are typical examples of creditors.

    Instigate that human touch yourself, as being a searcher fo

  44. you could try these out
    How Much Does a Driving License Cost in 2024?

    A driver’s license is a document that is necessary to drive on public roads. It also indicates your knowledge of road safety laws. There are various types of licenses and the price may differ from state to state.

    You’ll need to fill out an application form and pass a me

  45. https://dale-heath-2.blogbright.net/drp-po-chan-the-17-most-misunderstood-facts-about-zhai-wu-shu-huan-ge-an-ivano1-com
    財務義務經常會感覺到錨點這當然是沉重的人和家庭都重量。作為賬單堆積，力量發現答案加強。幸運的是，有很多不同的路徑同意導航使用此困境。在本文中，我們將探索四個關鍵思想：特定的自願計劃（IVA），債務減免計劃（DRP），破產的複雜性，雖然不斷發展世界的世界借用。通過了解這些選擇，您可以輕鬆只需採取賦予經濟安全行動。

    整個債務管理的最前沿可能是人

  47. DNA Repair inhibitor
    Physicochemical parameters of pond water were temperature (28.2°C), dissolved oxygen (4.2 mgl-1), pH (8.5), ammonia free nitrogen (15.8 mgl-1), alkalinity (112 mgl-1), hardness (68 mgl-1), nitrites (0.058 mgl-1), nitrates (58 mgl-1), and phosphates (0.046 mgl-1). However, the levels of nitrates, nitrites, alkalinity, and ammonia free nitrogen exceeded the recommended limits. In conclusion, these findings sugg

  50. read more
    Boarding Up a Door

    The act of boarding up the door is a preventative step that can help property owners protect their buildings and homes from damage. During storm season, this is a common service.

    It’s not a good idea for vacant property. Boarded-up vacant houses tend to lose their worth in the neighborhood. There

Leave a Reply

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