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.

411,097 thoughts on “Department Store Industry”

  1. https://output.jsbin.com/feduwaqogi/
    進入繁華的市場這當然是數字競爭激烈，注意力跨越了，很棒服務或產品不是足夠長。進入搜索引擎營銷（SEO成分是） – 秘密可以升起公司從晦澀到突出。這個故事圍繞著一個小，家族餐廳這當然是意大利“ Trattoria Bella”，發現了變革力的力量搜索引擎優化。

    Trattoria Bella結束了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這當然是重要的絕對是實際上是隱藏的新業務試圖找到就餐選擇在網上。大師馬可（Marco）意識到沒有在線的強大存在他們當然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品。

    決定改進這個敘述，馬可開始直接遵循他的SEO冒險，但至關重要的一步：了解他的聽眾。 。武

  3. bedside cot reviews
    How to Choose the Best Bedside Cot uk

    Both the NHS and the Lullaby Trust have issued official safe sleeping guidelines which advise that babies sleep in their own Moses basket or cot. A bedside crib can be a space-saving and practical option for parents who share a room.

    Mumsnetters adore this co-sleeper since it’s spacious with lots of space for babies to grow an

  4. Multilingual voice over
    In today’s interconnected world, multimedia localization has become a cornerstone for global communication and engagement. Whether for entertainment, education, or business, multimedia content such as videos, podcasts, and interactive apps transcends borders when tailored to diverse audiences. This article explores the positive impact and growing necessity of multimedia localization, emphasizing its unique ability to bridge cultural

  5. ShortsNoob.com is a free and fast tool for YouTube Shorts download in original High Quality. YouTube Shorts is short video making platform which is offered by YouTube. You can download YouTube shorts video with our Shorts Downloader freely and save them in your phone gallery, PC, Laptop, iPad & iOS devices and watch offline anytime.

  6. boarding up peterborough RepairMyWindowsAndDoors
    Emergency Boarding Up: Protect Your Commercial Property From Further Damage

    If your property is damaged due to a natural disaster it is imperative to quickly secure the structure. Emergency boarding involves covering doors, windows and other areas of the building with plywood boards in order to protect the str

  7. grey leather 4 seater sofa
    Buying a Tan Leather 4 Seater Sofa

    You’ve been looking at that stunning leather couch from Article, but are hesitant because you’re unable to try it on in person. Article has a great return policy and you can request free samples of the fabric to try before you purchase.

    <b

  8. EN460 ic50
    This article briefly describes the sanitary and mental health situation in Peru prior to the COVID-19 pandemic; the response measures taken by government authorities to confront them, analyzing their successes, errors, and limitations, and finally, some recommendations are made.

    Rheumatoid arthritis is a multisystemic inflammatory disease characterized by destruction of the joints. An effective treatmen

  9. just click the up coming internet page
    Buying a Cheap Wood Burner

    As heating prices continue to rise and inflation pressures are increasing homeowners are looking for ways to reduce their expenses. One option is to purchase a wood stove that is affordable.

    You can do this by searching the local classifieds and visi

  10. 4 seater split leather sofa
    Grey Leather 4 Seater Sofa

    If your living room’s style is contemporary or traditional the grey leather 4 seater sofa will complement your style. This sofa is constructed of modern Semi PU synthetic leather. It comes with a polished style. The sofa was manufactured by Pottery Barn in North Carolina.

    This is a sleek and fashionable

  12. 아이디피플
    다른 사람과 차별화되는 웹 프레즌스는 귀중한 자산입니다. 블로깅, 비즈니스 또는 커뮤니티 구축에서 두각을 나타내고자 하는 사람은 대상 청중을 효과적으로 참여시키는 방법을 마스터해야 합니다. 대한민국 최고의 검색 엔진인 네이버는 모든 사용자에게 강력하고 매력적인 경험을 제공하는 선도적인 온라인 플랫폼입니다.

    네이버 계정을 획득함으로써 더 강력한 온라인 입지를 확보할 수 있습니다. 네이버의 복잡성을 헤쳐 나가는 데 종종 어려움을 겪는 사람들에게 이상적인 계정은 더 많은 청중에게 다가가려고 할 때 혼란을 크게 줄여줍니다. 네이버의 가시성을 극대화하는 것은 정보에 입각한 선택을 하고 현명한 전략을 조정하는 간단한 문제입니다. 네이버 계정 기능을 잠금 해제하여 브랜드의 잠재력을 발휘하세요

  13. Thank you for the good writeup. It actually was
    once a entertainment account it. Look complex to far brought agreeable from you!

    However, how can we keep up a correspondence?

    Also visit my page – onlyfan free

  14. TDI-011536 order
    diversicolor and T. lapidaria, with both species being the ones whose FA profiles revealed a lowest level of dissimilarity and more closely resembled that of the aquafeed used in the fish farm. In the present work it was demonstrated that it is possible to produce polychaetes biomass with high nutritional value through an eco-design concept such as integrated multi-trophic aquaculture (IMTA). Indeed, this framew

  15. Köp körkort b96 utan examen online
    Buy a C Driving License Online

    Class C licenses allow drivers to operate vehicles and combinations that do not transport hazardous materials. The license requires drivers to pass a knowledge and skills test.

    After all the required written tests is completed and

  16. AM1241
    White adipose tissue (WAT) thermogenic activity may play a role in whole-body energy balance and two of its main regulators are thought to be environmental temperature (Tenv) and exercise. Low Tenv may increase uncoupling protein one (UCP1; the main biomarker of thermogenic activity) in WAT to regulate body temperature. On the other hand, exercise may stimulate UCP1 in WAT, which is thought to alter body weight regulation. H

  17. cheap wood burning stoves
    Wood Burning Stoves

    Wood stoves are a great focal point for any room. They provide warmth and comfort to the space. They are also carbon-neutral and can be made from dead trees or waste wood purchased from timber traders.

    They heat your home by combusting the logs inside a fireproof box and then releasing t

  18. EI1
    nological limitations, asymmetries of the information subsystems that translate into management weaknesses, as well as little community participation in the design and evaluation of health plans. Coordination weaknesses and improvement plans were detected in operating units of the regional networks, as well as. different training modalities. of specialists in family medicine is low.BACKGROUND Obliteration of the mastoid cavity wit

  19. köp körkort
    Buy Wheel Loader Driving License Online

    Learn to operate wheel loaders like professional. This course provides practical training that focuses primarily on the essential skills needed to be a safe and diligent machine operator.

    Like other heavy eq

  20. thor 311
    memperoleh kemenangan dalam taruhan games slots online pastinya harus mengerti berkenaan rencana serta tata metode buat taruhan yang betul. kalau saja penempatan taruhan dikerjakan secara benar pada agen yang benar karena itu kesempatan keuntungan dapat dicapai dengan benar-benar gampang. terhitung di dalam masalah ini beberapa bettor bakal betul-betul gapai untung besar.

    kenali saja bagaimana kerjakan permain

  21. professional recording studio
    In an era where content travels faster than ever, reaching audiences worldwide is not just a possibility but a necessity. Whether it’s a blockbuster film, a web series, or educational content, the importance of localization cannot be overstated. At the heart of this process lies the dubbing studio—a creative hub where language barriers dissolve, and stories find new lif

  22. elearning localization
    In an era where content travels faster than ever, reaching audiences worldwide is not just a possibility but a necessity. Whether it’s a blockbuster film, a web series, or educational content, the importance of localization cannot be overstated. At the heart of this process lies the dubbing studio—a creative hub where language barriers dissolve, and stories find new life in every corner of the globe.

  24. selleck inhibitor
    A series of molecular rotors was designed to study and measure the rate accelerating effects of an intramolecular hydrogen bond. The rotors form a weak neutral O-H⋯O[double bond, length as m-dash]C hydrogen bond in the planar transition state (TS) of the bond rotation process. The rotational barrier of the hydrogen bonding rotors was dramatically lower (9.9 kcal mol-1) than control rotors which could not form hydr

  27. ADHD symptoms female adults
    ADHD in Adult Men Symptoms

    Men who suffer from ADHD symptoms often feel that they are misunderstood. They may be accused of being sloppy, slackers or troublemakers.

    Men with untreated ADHD can also have issues with relationships due to their impulsiveness or forgetful

  28. selleck kinase inhibitor
    Infective uvulitis is a rare condition in children. In this report, we describe the case of a 4-year old-patient who presented a group A Streptococcus pharyngitis with uvulitis. No signs of epiglottitis were detected at nasal fibroscopy. She recovered rapidly with intravenous antibiotic therapy and 2 days of corticosteroid. is usually caused by group A Streptococcus or Haemophilus influentiae

  29. this website
    Moreover, mice exposed to CMIT/MIT in the OVA challenge had greater AD-like phenotypes, higher IL-4 and IL-17A skin mRNA expression levels, and a larger population of CD4+IL-4+- and IL-17A+-producing cells in the skin-draining lymph nodes. Our current findings in a mouse model thus suggest that CMIT/MIT exposure may cause AD symptoms through the dysregulation of Th2/Th17-related immune responses.In this study resistan

  30. car fob replacement near me
    Is It Time to Get a Replacement For Key Fob?

    Most new models of cars use one key to start and unlock the engine. Some even perform additional functions like rolling down windows and auto-park. Fobs are usually only available at the dealership because they require sophisticated programming equipment exclusive to the manufacturer.

    <br

  31. check details
    Loop diuretics are commonly used in clinical practice to manage high fluid loads and to control fluid balance. In this paper, a novel quantitative analysis method for multiple components with a single marker (QAMS) was developed for the simultaneous determination of 5 diuretic drugs furosemide, torasemide, azosemide, etacrynic acid, and bumetanide, by HPLC. Qualitative analysis was performed using relative retention time and ultra

  33. permis de conduire international
    Obtaining a B1 Driving License

    B1 licenses permit holders to drive motorized vehicles with four-wheels upto 400kg without cargo or 550kg if they were designed to transport cargo. This is a restricted version of the B category.

    The A2 category licence is used to drive mopeds with a a maximum engine power of 35kW. This includes the use of e-scoote

  34. ADHD in adults symptoms uk
    ADHD Symptoms in Adults Quiz

    Adults take online ADHD tests and rating scales to determine if they have symptoms. These ratings are valuable, but a doctor should test an adult for ADHD.

    These quizzes will ask you to determine how often you experience specific ADHD symptoms. These tests will hel

  35. CASINO MIG8

    There vary strategies for a variety of games, particularly for poker games. There are plenty of about free online games that you can buy.

    So, what are internet on line casinos? Well, they are basically online versions of real casinos. A likely you have often seen or visited a casino at eleme

  36. Selleckchem CL-14377
    This study revealed that the PIPase CaSac1 plays an essential role in regulating membrane homeostasis and membrane traffic, contributing to establishment of polarized hyphal growth. BACKGROUND Traditionally, elective nodal irradiation (ENI) has been used in clinical trials that have established thoracic radiotherapy as instrumental in improving survival for patients with limited-stage small-cell lung cancer

  37. omg! can’t imagine how fast time pass, after August, ber months time already and Setempber is the first Christmas season in my place, I really love it! anal dildo

  39. elearning localization
    In an era where content travels faster than ever, reaching audiences worldwide is not just a possibility but a necessity. Whether it’s a blockbuster film, a web series, or educational content, the importance of localization cannot be overstated. At the heart of this process lies the dubbing studio—a creative hub where language barriers dissolve, and stories find new life in every corner of t

  40. https://list.ly/melgaardvoss85hfawqx
    The pain can be reduced you can actually avoid an antiseptic preparation associated with. Also, following at the a soothing lotion containing Aloe Vera or Calamine Lotion can reduce the itching and discomfort.

    The letter “I” stands for Incentive. You will need to have something inciting in order to definitely action.your ultimate “Why”. Precisely why are you doing what

  41. 네이버 아이디 판매
    디지털 마켓플레이스의 복잡성을 탐색하려면 직관적인 접근 방식과 통찰력 있는 지침이 필요합니다. 한국 인터넷 사용자 측면에서 네이버는 활용하려는 모든 비즈니스에게 필수품입니다. 네이버 블로그 및 카페와 함께 지식 서비스는 브랜드와 고객 기반 간의 더 깊은 이해를 촉진합니다. 이러한 환경에서 사업을 수행하는 것은 신생 기업에게 많은 도전 과제를 안겨줍니다.

    안전한 플랫폼에서 네이버 계정을 구매하여 온라인 비즈니스 운영을 효과적으로 관리하세요 당사의 서비스는 네이버의 모든 혜택에 대한 액세스와 타협하지 않는 마음의 평화를 보장합니다. 네이버는 귀하의 비즈니스에 새로운 차원을 가져올 수 있습니다. 전략을 수정하고 지금 시작하십시오.

    네이버 계

  42. 重生異世一條狗

    小說 – 最強鄉村 – 最强乡村

    漫畫 — 重生异世一条狗

    拉薩市市爲中原國四大市轄區某，地處神州東南處，也是華夏人最多、面積最大的垣。舊聞文化名城，贛江上游處划算心目，任重而道遠的原始流通業駐地及華夏沂西面彙總通暢焦點。圍繞着兩條江河新德里江，錢塘江。

    请勿擅自签订契约

    柳毅的家地屬柳州市江州區珞石鎮，東臨主城，西望中樑，南含燕尾，北依烏江，全鎮河山容積148.5平方公里，口8.2萬，轄8個村3個引黃灌區。他故鄉也是在珞石鎮下的一個村叫名山村，日後父母都在內面上崗掙了錢纔在珞石鎮上買了一套一百指數的房子，算不上大紅大紫仍舊可比豐盈的，再嗣後若非他老子沾

  44. Photobooth rental Financial District NYC
    In a world where memories are cherished and moments are fleeting, capturing the essence of an event has never been more important. Photo booths have emerged as a delightful addition to gatherings, offering a unique blend of entertainment and nostalgia. Whether it’s a wedding, birthday party, corporate event, or any celebration, the joy of stepping into a photo booth and c

  45. buy Y-27632
    To evaluate the clinical outcomes and treatment related toxicities of charged particle-based re-irradiation (reRT; protons and carbon ions) for the definitive management of recurrent or second primary skull base and head and neck tumors.

    The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines were applied for the conduct of this systematic review

  46. Selleckchem 740 Y-P
    Echocardiographic strain imaging allows new insight into a complex cardiac mechanics and enables more precise evaluation of cardiac function. Hence, it has been shown to have clinical utility in a variety of valvular heart diseases. In particular, global longitudinal strain has been shown to be more sensitive to detect systolic dysfunction than left ventricular ejection fraction. In patients with va

  47. read more
    Colorectal cancer (CRC) is a major malignancy threatening the health of people in China, which also leads to heavy social burden. A large number of researches and practices have demonstrated that screening and early detection are effective in reducing the mortality of CRC. It is therefore imperative to design guidelines for the screening, early detection and early treatment of CRC that are in line with nationa

  48. ghost immobiliser review
    Autowatch Ghost 2

    Autowatch Ghost 2 is a revolutionary car immobiliser that protects against key-long theft, cloning and relay theft. It’s a small device that operates quietly and requires a unique PIN sequence using buttons already located on the steering wheel or on the centre console.

    It is completely undetectable to

  49. kenapa anak susah makan
    Masalah anak sukar makan sering saat menjadi momok untuk para orang tua. Ketika anak menarik makanan tertentu atau bahkan enggan makan sama sekali, dampaknya bukan hanya dalam pertumbuhan dan kesehatan anak, tetapi pun menciptakan tekanan emosional dalam keluarga. Namun, bagaimana jika ada solusi yang efektif, aman, dan baik anak untuk mengatasi masalah ini? Jawabannya adalah hipnoterapi putra susah makan, sebuah pendekatan

  50. rattan pendant light
    The finest decorative ideas for bedrooms needn’t be sophisticated and fussy. Floorboards are a very practical selection in a bedroom — they are straightforward to keep clear, work with any style, and of course look pretty. If you are involved about maintaining the room heat, then rugs are the answer. Invest in a larger rug to keep the heat in and cease it from being too noisy underfoot, and

Leave a Reply

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