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.

491,765 thoughts on “Department Store Industry”

  2. kenapa anak susah makan
    Masalah anak sulit makan sering saat menjadi momok tuk para orang tua. Ketika anak menarik makanan tertentu atau bahkan enggan makan sama sekali, dampaknya bukan hanya di dalam pertumbuhan dan kesehatan anak, tetapi pun menciptakan tekanan emosional dalam keluarga. Namun, bagaimana jika nyata solusi yang efektif, aman, dan ramah anak untuk membasmi masalah ini? Jawabannya adalah hipnoterapi putra susah makan, sebuah pendekat

  3. hitclub
    Younger kids will also love being happy to bring friends over or playing games with their parents. So, if you are planning to buy a poker table for the home you can without danger go ahead and buy this you.

    You may also like attempt and one of your exciting electronic poker variations to choose from at most sites. hitclub Video poker gives you the chance to see all can be a of a good poker game but directly against p

  5. hitclub systems
    A welcome bonus is however not the same. Players can also double their winnings when they select the doubling option on these games. This will ensure that every child is a success.

    You additionally like try to one in the exciting video poker variations offered at most sites. hitclub systems Video poker gives you the chance encounter all excitement in learning of an everyday poker game but directly against th

  7. SLOT DEPO 10K Resmi JP99 adalah situs slot gacor Deposit 10k tanpa potongan deposit pakai qris gopay dan bca bonus 10k di semua permainan gacor dengan link login dan link daftar slot 10k bet 10rb gampang jackpot jutaan rupiah. Dengan game terkuat di muka bumi situs slot depo 10 ribu gacor menyediakan garansi saldo kembali 100% jp99

  8. seo收費
    內部互聯網上不斷擴展的巨大景觀，無數網站競爭引起關注，努力值得注意在電子噪聲的混亂中。其中，選擇這當然是很少上升其他，從單純的電子陰影轉變為難忘的在線保存。這種轉變通常依賴於一個元素這當然是必不可少的搜索引擎優化，普遍稱為搜索引擎優化。

    我們的故事始於電子商務這當然是Tiny，“ Ecogoods”，專門從事可持續性服務和產品。儘管有一個數字這當然是奇妙的和對可持續性的渴望，生態植物發現自己迷路了在海洋搜索結果。當客戶時尋找環保服務和產品很少發現生態。他們的網站交通實際上是低，產品銷售實際上是停滯也夢創建區別似乎越來越多遠離抵達。

    決定改進他們的命運，主人決定走SEO旅程。他們首先執行關鍵字這當然是徹底知道

  9. uji Profisiensi Lab
    Ketika berbicara tentang laboratorium, kita tidak hanya membahas teknologi modern atau ruangan yang terstandar. Hal yang lebih penting adalah kepercayaan dan kualitas hasil uji yang dihasilkan. Di sinilah Uji Profisiensi Lab berperan penting. Uji ini adalah fondasi bagi laboratorium untuk memastikan hasil pengujian yang mereka berikan akurat, tet

  12. primary care physician doctor
    In the hustle and bustle of daily life, health often takes some sort of backseat until the problem arises. Yet maintaining good health and fitness isn’t just regarding reacting to sickness—it’s about proactive care. Enter the main care physician medical professional, the cornerstone of your respective healthcare journey. From diagnosing issues early on to offering assistance with lifestyle choices, the primary care me

  13. 38th
    In the vibrant world involving online gaming, 38Thai stands out as being a premier destination intended for casino enthusiasts. This kind of platform offers a plethora of exciting games, from typical slots to fun table games, ensuring there is something for every gamer. With an easy-to-navigate interface, 38Thai provides created an inviting environment that wi

  14. Köp ett C-körkort online
    Why Buy A1 and A2 Driver’s Licenses?

    The A1 license allows for an upgrade in riding and training rights compared to Compulsory Base Training (CBT). are restricted to 125cc engines.

    The new license format, launched in 2011 displays the bearer’s name, photo along with the date of issue as we

  16. RepairMyWindowsAndDoors
    Boarding Up a Door

    Boarding up doors is a proactive measure that helps property owners protect their properties and homes from harm. It’s a common service during storm season.

    But it’s not a good idea for vacant properties. The houses that are boarded up lose worth in the neighborhood. There are ot

  17. just click the following web site
    Lost Driving License? Here’s How to Find It

    You’ve lost your driving license and you’re at a loss on what to do. The first thing you must do is file a report with the police.

    This will create an evidence trail that can protect your identity from theft in the future. You can do this online or in person at the local office of your depar

  18. Köpa Hjullastare Körkort Online
    Buy Taxi Driving License Online Without Exam

    To get a taxi driver’s license, you must satisfy certain requirements. Usually, a medical examination and a background investigation are required. You should also be of good character and not have any criminal convictions.

    <br

  19. leather corner sofa 4 seater
    4 Seater Leather Corner Sofa

    A corner leather sofa is awe-inspiring, capable of being the center of attention in a living room. It looks fabulous with a wide range of interiors, from warm neutrals like cream cushions and off-white wool rugs cool grey table lamps and metallic accents.

    If you have a smaller living space, consider choosing a corner sofa m

  20. selleck inhibitor
    008). CONCLUSIONS The present results demonstrate improved treatment of stroke patients by a regular case-based discussion of recent thrombolysis cases. After discontinuation, the effects were sustained for the residents but not for the specialists. The results suggest that improved knowledge in residents is the main reason for better performance, while the performance of specialists was more affected b

  21. M6620 ATM inhibitor
    93%, 13.66%, 24.67%, and 4.58%, respectively. (2) Mechanism analysis illustrated that the lockdowns of 44 cities reduced human movements by 69.85%, and a reduction in the AQI, PM2.5, and CO was partially mediated by human mobility, and SO2, PM10, and NO2 were completely mediated. (3) Our findings highlight the importance of understanding the role of green production and consumption.CRISPR/Cas-based genetic pertur

  25. gpcr inhibitors
    Considering our punishment design, we develop a competent first-order algorithm for solving our punishment design (PenNMF) and show its worldwide convergence. Extensive experiments illustrate the high performance of PenNMF when compared with one other advanced algorithms on solving the ℓ m -norm maximization with orthogonality constrain

  27. ghost immobiliser 2
    Autowatch Ghost Immobiliser Installation

    The Ghost is the UK’s most advanced aftermarket immobiliser for CAN buses. It is discrete and does not have LED indicators or key fobs and is concealed in the wiring of the vehicle.

    It also allows users to disable the system tempora

  28. car keys fob replacement near me
    Remote Car Starter Key Fob Replacement

    You can start your car remotely when the sun is scorching, your seat back is scorching hot, or when a cold snap is threatening by pressing the button on your key fob.

    Some dealers charge a fee for this service, and it can take up to an hour to complete.

  29. https://twicezone.com/
    perjudian slots online dipandang seperti satu diantara permainan yang menjanjikan dan menguntungkan maka dari itu anda benar-benar memahami. jika anda berminat untuk memainkan permainan yang ada, sampai akhirnya anda samakan dengan yang ada. jika anda benar-benar berkeinginan untuk bermain, coba anda baca secara baik perihal apa -apa saja yang dapat mendatangkan keuntungan atas sesuatu yang anda lakukan serta permainkan itu. bahwasanya

  30. just click the following web site
    How to Recover Points on Your Driving License

    Having a high number of points on your driving record can affect your insurance rates. In addition serious and frequent violations could lead to license revocation or suspension.

    Many peo

  32. https://sv388boo1.bandcamp.com/album/sv388-boo
    Nhà cái đá gà hiện đang trở thành một trong những hoạt động giải trí rất phổ biến tại nhiều quốc gia. Với đa dạng các hình thức như đá gà trực tiếp, đá gà online, người chơi có thể trải nghiệm cá cược vào các trận đá gà hấp dẫn.

    Một trong những lý do khiến nhà cái đá gà trở nên hút khách là vì người chơi có thể tham gia các trận đấu gà ở bất kỳ đâu v

  33. hitclub systems
    Not surprisingly there some who is merely in it for the entertainment aspects, like professionally. I dropped 75 cents in slot machine and won $1.25. Really, these games are filled with adrenaline as well as fun.

    One regarding bonus I am going to always use is a cash back bonus. A cash back bonus is often a bonus that reimburses your deposit amount if you lose. You do not want to claim th

  34. thor311
    ya pertanyaan penting yang lalu mesti dapat ada jawaban dalah mengenai argumen kelebihan apa sich yang dapat temukan. dengan ada banyaknya alternatif keuntungan yang dijajakan itu setelah itu beberapa orang ingin main dan masuk dari sana. tanpa seluruhnya keuntungan itu, kelihatannya tidak ada yang ingin buat main di situss slots online terbaik itu. barangkali ini bikin anda ingin tahu apa sich keuntungan yang dijajakan serta dapat didapat itu.
    <br

  36. online adhd test
    ADHD For Adults Test

    If you have symptoms of ADHD and are suffering from it, a health care professional can assist. They can assist you in finding strategies to manage your stress to help you stay accountable and address the areas of your life that need improvement, like keeping jobs or enhancing relationships.

    <b

  37. 38th
    If you’re looking to dive into the particular thrilling regarding online gaming, 38Thai Gambling establishment is your greatest destination. With a diverse array associated with exciting casino video games, from electrifying video poker machines to classic table games, this program has something for every type of person. Whether you are a veteran gambler or perhaps begi

  38. ogg1 signaling
    The maize-fallow system had the best CF (0.34 kg CO2 e per kg grain) whilst, the maize-French bean system had the lowest CF (0.19 kg CO2 e per kg grain). The maize-French bean system had also considerably increased eco-efficiency both in terms of energy use (US$ 0.23 MJ-1) and (US$ 1.78 per kg

  39. previous
    Getting a Replacement Key Fob For Your Car

    It can be expensive to replace a key fob, depending on the place you go. In contrast to the past, when any locksmith could cut ridges into a piece of metal to create keys, modern automobile keys require specialized programming.

    Some auto

  41. sạc dự phòng
    Trong thời đại công nghệ hiện nay, việc duy trì kết nối liên tục là vô cùng quan trọng. Sạc dự phòng đã trở thành một giải pháp di động thiết yếu, giúp người dùng đảm bảo thiết bị của họ luôn sẵn sàng hoạt động.

    ZMI Power Bank cung cấp một loạt các sạc dự phòng chất lượng cao, đáp ứng nhu cầu đa dạng của người dùng. Với thiết kế nhỏ gọn và dung lượng

  42. https://www.equinenow.com/farm/sv388-boo.htm
    Đá gà trực tuyến hiện đang trở thành một trong những hoạt động giải trí rất phổ biến tại châu Á. Với nhiều lựa chọn như đá gà trực tiếp, đá gà online, người chơi có thể thỏa sức cá cược vào các trận đá gà kịch tính.

    Một trong những lý do khiến cá cược đá gà trở nên hút khách là vì người chơi có thể đặt cược các trận đấu gà ở bất kỳ đâu và bất kỳ lúc nào

  45. ghost immobiliser 2
    Autowatch Ghost Installers Near Me

    Autowatch Ghost is a device that acts as an anti-key replica. It is connected directly to CAN data networks in vehicles and requires a PIN to start the vehicle. It also comes with the feature of Valet/Service mode that prevents thieves from using signal spoofing and device spoofing.

    Installers who are registered with TASSA can

  47. 債務重組邊間好
    財務義務經常感覺就像限制您自由的連鎖店那是財務您從追求您的目標和目標。如果您感到被賬單抓住，這是時間為你探索您的選擇為了斷裂。在本文中，我們將研究四種技術那是有效處理財務義務：債務重組，債務減免計劃，個人自願計劃（IVA）和債務還款計劃（DRP）。其中的每一個策略提供一種手段這當然是獨特應對您的貨幣挑戰，並為數據恢復鋪平道路。

    讓我們從債務重組。此方法主要是關於控制。通過直接互動還有你債權人，你可以協商更多條款那是有利你欠的錢。這可能包括減少或擴大付款條款的利息，使您能夠使更易於管理每月義務。債務重組將您作為積極貨幣旅程的參與者的職位，幫助減輕壓力保持你的信用排名。

    如果看著與債權人談判似乎令人生畏，請考慮債務談判系統。你是由這些程序與專家誰集中精力談判定居點代替。他們的專業知識可以導致大量降低你的禮物財務義

  49. pkc412 inhibitor
    Root exudates are complex substance mixtures being spatially and temporally powerful. Distinguishing the precise chemical(s) that mediate recruitment of soil germs to particular parts of the origins is thus challenging. Right here, we connect patterns of bacterial chemotaxis responses and sensing by chemoreceptors to chemicals present in root exudates gradients and identify

  50. 네이버 아이디 구매
    고품질 온라인 인지도는 회사의 신뢰성과 평판을 크게 높일 수 있습니다. 디지털 마케팅의 혼돈을 뚫고 Naver는 수많은 플랫폼 덕분에 한국에서 강력한 도구로 두각을 나타냅니다. 네이버 ID를 통해 접근할 수 있는 네이버의 방대한 사용자 기반은 비즈니스 도달 범위를 확장하여 마케팅 활동을 강화하는 데 중추적인 역할을 합니다.

    네이버의 지식서비스, 카페, 블로그 기능을 최대한 활용하기 위해서는 맞춤형 네이버 ID가 필요합니다. 이 혁신적인 기능은 비즈니스의 신뢰성을 강화할 뿐만 아니라 잠재 고객과의 커뮤니케이션을 간소화합니다. 비즈니스에 도움이 되려면 맞춤형 네이버 ID를 구매하는 것을 고려해 보세요 이 디지털 마케팅 메커니즘을 통해 더 높은 수준의 성과를 낼 수 있는 새로운 잠재력을 발휘하는 것이 중요합니다. 네이버의

Leave a Reply

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