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.

281,447 thoughts on “Department Store Industry”

  1. using an escort can be a great way to add some excitement to your sex life. If you feel like your sex life has become routine, an escort can help you spice things up. They can also help you explore your wild side and try new things that you might not be comfortable doing with your regular partner.
    http://topescortsservicelahore.com/

  2. pleasant post, stay aware of this fascinating work. It truly regards realize that this subject is being secured likewise on this site so cheers for setting aside time to talk about this!
    forget me knot

  3. Free fire Mod Apk is one of the most popular fighting games all over the World. There are a lot of competing games, but in the free fire mod apk, you can easily play multiple and different players. It is compatible or agreeable with all devices like Android and Ios. If you are trying to download it for Mobile, you can get it from the play store. In this, you can challenge your friends to play the game.

  4. It’s based on your post.
    If time permits, you can visit my casino site and receive useful information and free coupons related to the casino

    먹튀검증

  5. crm software singapore has been advancing with the help of advanced technology that enables companies to manage customer interactions, such as mobile apps, social media platforms, and cloud-based services. Furthermore, many companies in Singapore also use data analytics and artificial intelligence to optimize their CRM strategies, thereby providing customers with more personalized experiences and better connectivity with their needs and preferences.

  6. Morocco is a fascinating travel destination located in North Africa, known for its rich culture, history, and stunning landscapes. Visitors can explore ancient cities like Marrakech and Fes, wander through traditional markets and souks, and enjoy the breathtaking views of the Sahara desert and the Atlas Mountains.

    モロッコ旅行
    https://moroccotraveldestinations.com/jp/

  7. Construction business software is a specialized computer program designed to help construction companies manage their projects and business operations. This software typically includes features for project management, scheduling, budgeting, accounting, and communication with stakeholders. By using construction business software, companies can streamline their processes, reduce errors, improve collaboration, and make more informed decisions.

  8. Construction apps offer numerous benefits to contractors, builders, and construction managers. These apps streamline project management by providing features such as scheduling, communication tools, and task tracking, which help to increase efficiency and productivity. With real-time updates and collaboration tools, construction apps allow for better communication and coordination among team members, reducing the risk of errors and delays.

  10. Individual counseling is an effective approach to diagnose the mental issues, though not a single approach fits for all treatment. Different individuals may require different types of therapy, and it’s essential to arrange a session with mental health professionals to find out the most effective treatment plan. In simple words, it is conversations that brighten up your inner conscience.

  11. Student Attendance System has significant benefits in effectively and efficiently managing student attendance. By using this system, schools can monitor student attendance accurately and in real-time, which helps speed up the attendance process and improve student safety. Additionally, the student attendance system can also help reduce the rate of unauthorized absences or absences without clear reasons.

  13. Bathroom Accessories Singapore is available in a variety of types, but choosing a fixture is always determined by Budget, Material, Style, and Consistency. Keep in mind that it is a location you want your guests to relax in as well as a space that must be kept clean. Clean and straight lines may make your bathroom appear more sanitary, or they may inspire a visitor or member of the home to clean up after himself or herself.

  14. The benefits of a CRM Loyalty Program include increasing customer retention and reducing churn rates, or customer defection to competitors. By providing incentives or rewards, customers feel valued and are more likely to return to purchase products or use services offered by the company.

  15. (visit to my website karachiescorts.website) With the Russian Call Girls Karachi extension, you need not face any problems if you are looking for sophisticated and high-class escorts. These escorts in the Karachi extension are superbly trained and are there to grab your attention. They like to hook up with good and handsome guys and enjoy unforgettable moments with them. You can contact Housewife Escorts Karachi Extension through email or phone call. If you want to meet a call girl through agencies, you must share some basic details that will be completely confidential. You can call college girls near Karachi extension from many websites and meet them at any convenient location. You will feel amazing with an expert and brave escort girl. She will impress you with her seductive behavior and warmth. You can be intimate with her in a way you have never experienced.
    https://karachiescorts.website/

  16. Sanitation entails the safe disposal of human urine and faeces, as well as garbage collection and wastewater disposal. Leading stores such as Homewerkz sell high-quality Toilet Bowl Singapore at competitive prices. The primary purpose of good sanitation is to protect natural resources such as surface water, groundwater, and soil, as well as to provide people with safety, security, and dignity when defecating or urinating.

  18. Dubai Visa Online Dubai has become the most popular tourist destination located in the United Arab Emirates (UAE) and it receives millions of visitors who travel to Dubai every year.

  19. Software UKM merujuk pada program atau aplikasi yang dirancang khusus untuk membantu mempermudah operasi bisnis dan manajemen pada skala kecil dan menengah.

  21. Jainsons Lights is the prominent place where you can buy Wall Lights Online India. Today, there is an availability of lighting fixtures in various shapes and designs. You can pair a decorative ornamental light with a space with minimal decor. If you will buy the proper lighting will prompt you to function appropriately.

  24. We provide competent 5g training material so that learner always stays at the forefront of this exciting new technology. The practical knowledge and written case study together help the learners to upgrade their skills and gain essential confidence and competency to work with 5g technology successfully.

  27. Cisco router setup can be done with the help of the default IP address 192.168.0.1. Enter the IP address in the web browser and login to the Cisco router using the default router login credentials. Once you navigate to the Cisco router setup wizard, follow the on-screen prompts and your router will be set up successfully. For more help with the same, reach out to the team at our end now.

  28. For the forthcoming cold season, think about purchasing wool fabric. If so, pay a visit to KKPL. It’s a well-known Wool Fabric Supplier in Amritsar It provides a wide range of woollen products, such as shawls, stoles, and scarves, which are well received in the international market. Its main goal is to meet all orders’ color, size, printing, and embroidery specifications.

  29. aol mail In this digital era, a lot of people, including me like to have a sense of personalization in everything we do. The same happens when we are in our workspace. Therefore, to let users have a personalized experience with their emailing-related tasks, one exceptional email service was released in the market by Verizon Communications.
    aol mail

  32. Hello, Ramanraman is here to discuss GanderCoin, the first digital currency gave in Quite a while, was the business’
    most memorable undertaking to be driven by ladies. The pioneers behind GanderCoin,
    Shaik Ayesha and Subi Ansari, have shown the to a great extent male-ruled digital
    currency industry that ladies can assume significant parts in the blockchain and
    cryptographic money ventures. Indian cryptocurrency
    https://gandercoin.com/blog/Indian-Crypto-Coin

  34. Smart HVAC control is revolutionizing how we manage our living and working spaces. With this technology, it’s easier than ever to have full control over any space’s temperature, humidity, air quality, and energy efficiency. In commercial settings, smart HVAC systems can be programmed to adjust the temperature and humidity levels in specific areas throughout the day, allowing businesses to save on energy costs.

  41. PayPal is a widely used payment system that facilitates online payments to make them secure. When users add their credit or debit card and bank account to their PayPal account, they can use it to make online purchases from participating stores. PayPal is a middleman between traders and banks and keeps their sensitive data secure. Users can also use PayPal to safely transfer funds to family and friends and receive funds from people. This function helps divide rent with roommates. In this detailed blog, you will learn how to access a PayPal login and solutions for some general issues you can face.

    https://sites.google.com/palpayi.com/paypal-login/home

  42. Remitly is a popular remittance service to make money transaction procedures quicker, affordable, and transparent. It boasts numerous ways to receive money, such as through a smartphone or home delivery. Also, it takes the lowest to zero fees for money transfers to many countries. Thanks to its worldwide reach, the free-to-download app of Remitly will benefit active users who regularly transfer money to family and friends in other countries. Users in 21 countries, including the United States, can send money to their loved ones in over 160 countries.

    https://sites.google.com/palpayi.com/remity/home

  45. “Hey everyone! Are you on the hunt for the best gaming laptops in 2023?
    Look no further! Check out this informative article on the top gaming laptops available right now.
    Whether you’re a serious gamer or just someone looking for a powerful laptop, this article has got you covered.
    So grab a cup of coffee and get ready to learn all about the latest and greatest gaming laptops. Happy reading!”
    Best Gaming Laptops in 2023

  46. After reading this article, I think it’s a good article that has a lot of meaning, and it’s a great word that really makes your head and chest realize a lot of things토토사이트

  47. After reading this article, I think it’s a good article that has a lot of meaning, and it’s a great word that really makes your head and chest realize a lot of things토토사이트

  50. Do you want to find the finest Naturopathy Centre in your region? Then, without further ado, make your way to SOUKYA. It is a popular place to reap the benefits of Naturopathy, which is both an art and science of healthy living and a drug-free practice. It has its understanding of health and sickness, as well as its own set of therapeutic notions.

Leave a Reply

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