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.

34,680 thoughts on “Department Store Industry”

  3. Awesome thankyou for this valuable post. MY sites for Disney Plus Hotstar updates You can enjoy Disney shows and movies You can Get more new latest updates about my sites so follow and click belo the link.
    DisneyPlus.com/Begin

  4. Experience the thrill of sports with our quickgyan dedicated to everything sports-related. Get the latest news, updates, and analysis on your favorite sports and athletes at our quickgyan.in!

    Quick Gyan

  8. Gatepass software by OneStop helps organizations streamline their security operations and reduce the risk of unauthorized entry
    Gatepass

  18. Dial our phone number for Apple support and get reliable solutions for all your Apple device issues.

  23. Thanks for sharing the wonderful articles and list. I was wondering if it was do follow that didn’t mention the most preferred terms used in all the blog and comment articles. So, it is clear that which is do follow and no follow it is very useful for all.koora live 365

  24. 368MEGA >> Slot Online Gacor Untuk Kesenangan
     
    368MEGA slot online untuk bersenang- senang sangatlah mudah. Terlepas dari betapa berbedanya setiap situs slot online , prinsip dasarnya tetap sama pilih ukuran taruhan dan nomor garis taruhan yang sesuai , lalu tekan tombol putar. Putaran bonus dimulai dengan kombinasi simbol acak . Pilih kombo untuk dipertaruhkan terlepas dari nomor reel dan baris . Dimungkinkan untuk bertaruh di semua lini dalam demo Cleopatra  ini meningkatkan ukuran taruhan tetapi melipatgandakan peluang menang. _Setelah memilih level taruhan dan jumlah garis pembayaran, putar gulungan hingga berhenti berputar dan kombinasi simbol ditampilkan. Anda menang jika kombinasinya cocok dengan garis pembayaran yang dipilih. Teknik ini diulangi sampai jumlah uang yang dibutuhkan dimenangkan.

    Kombinasi Kemenangan : Mereka disejajarkan pada salah satu garis pembayaran yang tersedia, yang bisa horizontal, vertikal , diagonal, zigzag, dan seterusnya. Jackpot: kombinasi dari simbol yang paling tidak biasa dan luar biasa .
    Taruhan minimum dan maksimum : beberapa sen hingga ratusan dolar .
    RTP : ukuran berapa banyak uang yang akan dibayarkan dalam skenario terburuk.
    Volatilitas : semakin besar volatilitas , semakin besar bahaya kerugian.
    Slot Online untuk Bersenang-senang
    Sebagian besar game sepenuhnya dapat dimainkan langsung dari browser Chrome, Safari, atau Firefox .Game demo dapat diakses dari laptop atau ponsel Anda jika lebih disukai berjudi dari smartphone. Ini, tidak seperti pokies tanpa unduhan , harus dipasang di ponsel cerdas Anda. Demonstrasi kasino permainan slot gratis gaya Las Vegas , serta permainan mesin slot online gratis lainnya untuk bersenang -senang bermain di kasino online , semuanya tersedia secara online.

    Tentang Penyedia Perangkat Lunak
    Mulailah pencarian Anda untuk mesin online dengan berkenalan dengan penyedianya. Karena berbagai alasan, fitur minor ini dapat secara drastis mengubah pengalaman bermain Anda selanjutnya. Untuk memulai, penyedia perangkat lunak tertentu memberikan penawaran bonus unik untuk memungkinkan pemain mulai bermain slot online. Dengan melihat internet , setiap pengembang game memiliki kualitas masing-masing dan gaya tertentu. Aristocrat Pokies telah menciptakan nama untuk dirinya sendiri dengan mengembangkan mesin slot online dan offline yang dapat dimainkan secara gratis. Pelajari tentang lisensi yang dimiliki pengembang game .Bahkan game gratis dari sumber yang tidak jujur ​​pun dapat mengekspos data perangkat pemain .Kami telah melampirkan daftar penyedia game internet terbesar dan terpercaya untuk proyek perjudian hanya untuk Anda.

  32. Dimana pun dan kapan pun Anda ingin bermain, Anda bisa langsung membuka situs resmi BimaSpin dan langsung memainkan permainan apa saja yang ingin Anda mainkan. Slot Gacor BimaSpin pun telah resmi sebagai situs yang aman dan terpercaya, aman untuk Anda mainkan kapan saja bersama teman teman Anda. Segera daftarkan diri Anda untuk mendapatkan bonus gratis dan spesial pendaftaran baru.

    Dapatkan bocoran slot gacor di situs BimaSpin untuk menunjang kemenangan Anda ketika bermain, Anda akan dijamin bisa mendapatkan maxwin slot hanya dalam beberapa kali spin saja. Akun Anda pun akan otomatis di upgrade ke tingkat VIP supaya ketika bermain bisa banyak mendapatkan scatter dan sangat mudah mencapai maxwinnya. Dengan minimal deposit saja pun sudah sangat mudah bagi Anda untuk mendapatkan jackpot tertingginya.

    Klik situs resmi BimaSpin untuk mendapatkan info promo lainnya. Situs slot online terbaik dan terpercaya adalah situs Bimaspin yang sudah banyak diakui oleh para pemain pemula maupun pemain senior dikarenakan mudahnya mendapatkan kemenangan yang besar dalam bermain judi slot online. Anda bisa langsung membuktikannya sendiri dengan hanya memainkan satu user ID saja di situs gacor BimaSpin sekarang.

  34. Jika Anda sedang mencari situs slot online yang mudah untuk dimainkan, maka situs ANGGUR88 lah jawabannya, dikarenakan sistem situs ANGGUR88 sangat mudah untuk di akses dimana saja dan kapan saja, dapat Anda akses menggunakan perangkat apapun, dijamin Anda akan menemukan pengalaman baru dan terbaik dalam bermain judi online pada situs ANGGUR88.

    Cukup dengan memainkan satu user ID saja Anda sudah bisa memainkan semua permainan di situs ANGGUR88 dan sangat banyak lagi keuntungan yang bisa Anda dapatkan nantinya, aktif bermain untuk mendapatkan kejutan spesial dan juga jackpot tertinggi. Spesial slot gacor 88 situs ANGGUR88 bisa Anda dapatkan dengan mudah dan 100% bisa menang, sudah banyak yang membuktikan slot games kami dan membawa kemenangan yang besar.

    ANGGUR88 telah diakui sebagai slot gacor gampang menang yang mampu memberikan Anda profit besar hanya dalam beberapa kali putaran permainan saja. Anda tidak perlu takut untuk mengalami kekalahan selama bermain di situs ANGGUR88. Hanya dengan cara mengunjungi situs resmi ANGGUR88 kemudian langsung daftarkan satu user ID gacor maka Anda sudah dijamin bisa membawa pulang berbagai keuntungan yang tentunya hanya bisa Anda peroleh dari situs ANGGUR88.

  40. Social bookmarking sites are the best way to get your guest post indexed in search engines. Some of the popular social bookmarking sites include Reddit, StumbleUpon, Digg and Hacker News.

    The list of best social bookmarking sites is a must-have for every content writer who wants to get more traffic from these sites.

  43. As the best and most trusted online gacor slot QQSLOT228 international license from PAGCOR, Malta Gaming Authority, iTech Labs, Gambling Commission, BMM Testlabs, Gaming Labs Certified

  46. Exterior wall painting is the process of applying paint or other coatings to the outer walls of a building. This is done for both aesthetic and protective purposes. A well-executed exterior wall painting job can enhance the overall look and curb appeal of a building, while also protecting it from weather and environmental damage.

    外壁塗装 助成金
    https://sasaki-tosou.co.jp/

  47. Its a great pleasure reading your post.Its full of information I am looking for and I love to post a comment that “The content of your post is awesome” Great work. kalyan chart

Leave a Reply

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