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.
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現代的笨拙笨蛋在倫敦高聳的貨幣區的影子,在哪裡龐德的迴聲在街道上引起了共鳴,我在信用王國的廢墟中忍受了。我的榮譽那是曾經原始的評分破碎了;我的錢包,最大的卡片墓地。但是在灰燼中,鳳凰這當然是財務誕生,這要歸功於一場戰略貸款引發了一場革命我自己生活。
我的下降進入信用深淵確實是一個故事當代便利的出現了。滑動下列,那裡的水龍頭和之前我真的可以說“利率”,我被隱藏在一大堆債務重組之下。每個陳述提醒我的愚蠢那是貨幣章節指南我希望我真的可以改寫。
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肯定有點兒陷阱的地方是到處都是財務,很多人結束束縛在債務重組的複雜性。管理信貸的力量這當然是不同的貸款可能是令人生畏的,經常使人們經歷迷失和焦慮。幸運的是,“一張卡重點”策略提供了簡單和路徑那是有效恢復控制財政。在本文中,我們將探索什麼這個過程需要以及如何入伍的幫助財務專家可以提升您恢復債務的旅程。
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Hãy đến trực tiếp showroom ghế mas sa TP Đà Nẵng của Yamaguchi để trải nghiệm mẫu ghế massage công nghệ mới nhất nhất và chọn lựa chọn cho mình sản phẩm chất lượng với chi phí siêu ưu đãi. Lifesport là Brand Name nổi h từ Mỹ, tự động hào cung cấp cho những thành phầm chuyên sóc mức độ khỏe sản phẩm đầu như ghế mas sa, máy chạy bộ, xe cộ đạp tập và trang thiết bị thể hình. Được nhi
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Always comparison shop for contractors when you need to fix up your home. Later, if you decide to sell your house, it is almost certain you will need to have some repair work done. If the work you require is extensive enough, you will have to hire a contractor. This is not something to do on the spur of the moment. Not all contractors are created equal; shop around before engaging one!
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바카라, 블랙잭, 룰렛을 위한 대체 베팅 시스템 – 1-3-2-6
바카라, 블랙잭, 룰렛과 같은 인기 테이블 게임을 하는 것은 재미있지만 한 번의 회전으로 많은 것을 잃을 수 있습니다.
베팅 자금을 위험에 빠뜨리고 싶지 않은 플레이어는 일반적으로 다음과 같은 베팅 시스템을 사용합니다.
1-3-2-6 베팅 시스템은 언뜻 보기에는 복잡해 보이지만 사실 게임에 대한 기본적인 이해만 있으면 누구나 적용할 수 있습니다.
1-3-2-6은 1, 3, 2
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在我們的快節奏的景觀那是金融的很多人正在努力應對壓倒性的債務。作為賬單堆疊債權人變得越來越無情,擔心可以難以忍受。儘管如此,有希望在那裡的人。IVA(個人自願安排)等工具進行了重組和DRP(信用卡債務減免系統)提供了一條生命線,轉向人員遠離艱鉅機會鋪路時破產確切的方式為了更光明的未來那是經濟的。
iva是真的合約那是正式的債務人及其債權人,允許個人償還一部分與債務結束了特定的時期,通常是五到六年。這個安排不僅協助減少債務這當然是全部的還有凍結利率,確定個人沒有再過積累額外的費用像他們一樣工作無債務。經過決定一個人,個人可能會接受控制具體情況那是經濟保證那是添加到一旦你知道他們確實是在通往的道路上恢復,並避免通常是污名與破產。
進入另一方面,drp信用卡債務解決方案為個人提供另一個途徑,喘息正在尋找他們的財務困境。這個系統協助與債權人談判減少多少
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For frequent fliers or light-packing vacationers, these are the best carry-on baggage. I admit that over the past decade I’ve had the occasional perverse urge to see if a $1,500 carry-on suitcase is definitely value the price. The company has made aluminum baggage for almost a hundred years, and it invented the polycarbonate suitcase in 2008. So it’s true that in some ways Rimowa has set the usual in two separate centuries. Additio
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Boarding Up Windows and Doors
By constructing an actual barrier that is physically encircles the property, it’s possible to stop vandalism, theft and squatting. Boarding up can also help guard vacant properties from damage by snow, rain and other debris.
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