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.

267,040 thoughts on “Department Store Industry”

  1. DDR1-IN-1
    Polar regions are currently warming at a rate above the global average. One issue of concern is the consequences on biodiversity in relation to the Northward latitudinal shift in distribution of temperate species. In the present study, lasting almost two years, we examined two phenological traits, i.e. the shell growth and behavioural rhythm of a recently re-established species in the high Arctic, the blue mussel Mytilu

  3. Magnificent beat ! I wish to apprentice while you amend your web site, how
    could i subscribe for a blog site? The account helped me a
    acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear idea

    Take a look at my webpage … online medicine order discount

  4. find more
    Background To explore the status of postoperative psychological stress and the expression of stress-related factors heat stress protein 70 (HSP70) and interferon γ (IFN-γ) in patients with early lung cancer, and to provide scientific basis for psychological rehabilitation and index detection of patients with lung cancer. Methods Patients with early lung cancer hospitalized in People’s Hospital of Rizhao from Ap

  5. Androgen Receptor Antagonist
    0 mol%. Main fatty acids were anteiso-C150 and anteiso-C170. The polar lipids comprised diphosphatidylglycerol, phosphatidylglycerol, and unidentified glycolipids. Rhamnose, ribose, and glucose were the primary cell wall sugars. The major peptidoglycan amino acids included alanine, glutamic acid, glycine, and 2,4-diaminobutyric acid. An additional remarkable difference from other Agromyces species is t

  6. real leather sofa
    Couches Leather – The Ultimate in Comfort and Style

    If you’re looking for the comfiest lounge-around-and-watch-a-movie-marathon couch, or just want to receive endless compliments on your living room furniture, couches leather may be your ideal pick.

    Before purchasing a leather couch, you should consider

  7. b1 zertifikat kaufen ohne prüfung
    How to Check a Telc Certificate

    A telc certificate is an excellent way to demonstrate your proficiency in English. It is widely recognized by universities and employers in Germany. The test was designed by seasoned language experts and is subject to rigorous quality controls.

    Telc offers examinations in 10 languages. They follow the Common European

  9. leather modular sofa
    How to Avoid Buying a Cheap Leather Sofa

    Elegant enough to make a striking design statement, this highly-rated sofa is upholstered with soft, buttery leather and a sturdy frame made of pine wood. It is backed by a lifetime warranty.

    The Article Sven sofa offers good value for its m

  11. landlord gas safety certificate buckingham
    What Does a Gas Engineer Do?

    A gas engineer is accountable for the setup, assessment and maintenance of gas home appliances. They likewise ensure that these devices adhere to safety policies. They must have a pertinent qualification and be registered with the Gas Safe Register.

  12. real leather sofa
    How to Spot a Genuine Leather Sofa

    This sofa makes a fantastic addition to any space. Its leather upholstery is buttery soft. Customers adore its simple styling and high-quality, genuine leather upholstery.

    Untrained eyes may have difficulty identifying the difference between real and faux leather. Here are six ways t

  13. Fedratinib mw
    Myocardial mRNA and protein levels of insulin-like growth factor 1 receptor (IGF1R) were significantly lower in the DM and DM-Sham groups compared with the DM-Acu group.

    EA reduced serum glucose; prevented DM-induced hypertrophy and deterioration of systolic function, inflammation, and fibrosis; and restored IGF1R, P-Akt, and P-AMPK levels in mice with type

  14. boarding up
    Emergency Boarding Up: Protect Your Commercial Property From Further Damage

    You must act quickly to secure your home when it is damaged by the event of a catastrophe. Emergency boarding up involves covering doors, windows and other parts of the building with plywood to protect it from further damage or unauthorized access.

    <b

  15. JIB-04
    Individuals in specific sub-groups (older, male, higher BMI) and who differentially participate in certain behaviours (less gardening, less walking and more television viewing) but not others increase their sedentary time at a higher rate than others; utilising this information could inform successful intervention content and targeting.

    Individuals in specific sub-groups (older, male, higher BMI) and who di

  17. find more
    Falls on icy surfaces are the leading cause of occupational injuries for workers exposed to outdoor winter conditions. Slip resistant footwear has been shown to reduce the risk of falls for indoor workers but until recently, there was no accepted standard for evaluating the slip resistance of winter footwear on icy surfaces. Our team recently developed a lab-based testing protocol for measuring footwear slip resistance. Th

  18. selleck products
    The authors measured perceived quality of life for 4 disabilities among 450 adults in 3 resource-limited countries, measuring mean utilities using time trade-off, and surveying participants on 35 sociocultural characteristics to compare utilities for disabilities by country and examine associated sociocultural characteristics. Mean utilities were >0 for mild and moderate, but less then 0 for severe and profound.

  20. company directory
    The answer lies not necessarily just this Mexican tribe’s foot gear, but their method of running; a strategy that involves bending the knees, which lessens impact on the joints, and landing on the forefoot, associated with the heal of the foot. You see, most ‘western’ runners learn to order with padded shoes during their feet. This allows them to advance quite several bad habits that they’d likel

  22. LDC203974 solubility dmso
    We present four new complete mitochondrial genomes for Dasypoda hirtipes, Melitta schultzei, Capicola nanula and Samba griseonigra belonging to the basally branching bee family Melittidae covering four genera in three tribes (Melittini, Hesperaspini, Dasypodaini) and two subfamilies (Melittinae, Dasypodainae). The mitogenomes vary between 15,884 and 20,324 bp in length and consist of the typical se

  23. Akt inhibitor
    presents many similarities to the global ocean while the redoxcline and euxinic water masses have similarities to other similar aquatic environments of marine (Cariaco Basin or other Black Sea regions) or freshwater (meromictic monimolimnion strata) origin. The MAG collection represents very well the different types of metabolisms expected in this kind of environment. We are adding critical information about this uniqu

  24. visit website
    Buy Category A Driving License

    The non-commercial driving licence is the category A license. It permits you to drive private vehicles that have up to nine seats as well as certain cargo vehicles.

    It’s also the first step in getting commercial driver’s licenses, which requires further training and

  27. führerschein kaufen seriös
    Buy a Real Driving License

    You will need to visit the Department of Motor Vehicles in your state. The process for getting one is similar to obtaining a standard license. However, you will have bring along a few additional documents.

  28. Elamipretide order
    A semi-supervised learning framework combines (ii) and (iii) and can make predictions which take into account the similarity of the testing compounds to those in the training data and adjust for the reporting selection bias. We illustrate the three methods using publicly available structure-activity data for a large set of compounds reported by GlaxoSmithKline (the Tres Cantos AntiMalarial Set, TCAMS

  29. Crenolanib ic50
    Genitourinary tuberculosis is the fourth most common cause of extrapulmonary tuberculosis, although often underestimated by clinicians due to its rare and non-specific symptoms. One of the disease’s complications is infertility. Although Portugal is one of the European countries with the highest prevalence of tuberculosis, its impact on Portuguese female fertility is unknown. With this study, we intend

  30. SQ22536 chemical structure
    Immunostaining showed that resveratrol inhibited CD31

    Emcn

    angiogenesis and high expression of VEGFA and Angiopoietin-1.

    Resveratrol inhibits osteoclast differentiation and reduces active bone resorption by regulating the OPG/RANKL/RANK pathway, and inhibits the abnormal proliferation of CD31

    Emcn

  31. Selleckchem Methylene Blue
    Background Experimental evidence has indicated the benefits of intraoperative controlled decompression for the treatment of severe traumatic brain injury (sTBI). Intraoperative rapid decompression (conventional decompression) for the treatment of sTBI may result in intra- and post-operative complications. Controlled decompression may reduce these complications. Previous clinical trials i

  32. führerschein kaufen legal erfahrungen
    Buy a C1 171 Driving License Without a Test

    If you’re a student from another nation who wants to drive in New York, you will have to pass a written test and take a five-hour pre-licensing course. You must also a be under the supervision of a licensed driver at all times when driving.

    ‘ll nee

  33. selleck products
    The stigma associated with drug addiction in the U.S. has been found to be a deterrent for individuals seeking treatment (SAMHSA, 2013). This experimental vignette study examined substance abuse stigma toward a hypothetical heroin addict (“John”) in a sample of 62 nursing students who were given different occupational information about John to manipulate their perceptions of his social status. Each study partici

  34. boobshirts.store
    In recent years, fashion has seen a surge of trends that challenge traditional norms and push the boundaries of self-expression. One of the most eye-catching developments in this landscape is the emergence of the boob shirt, a bold and playful piece that has sparked both conversation and controversy. Known for its unique design that accentuates and showcases the wearer’s figure, the boob shirt has b

  35. Driving Instructor Training
    Driving Lessons in Louth

    Driving lessons are an integral aspect of learning how to drive. A qualified instructor can teach you the skills necessary to pass your test and to become a safe, long-term driver.

    The 12 lesson Essential Driver Training (EDT) program has been developed

  36. Selleckchem GSK1325756
    Novel antibiotics approved by noninferiority trials may become less effective over time in two scenarios (i) the treatment effect in studies of novel antibiotics may be consistently worse than studies of older antibiotics; (ii) when a decreasingly effective control arm is used in a series of noninferiority trials. Our systematic review of 175 noninferiority antibiotic trials found these scenarios to be rare

  37. pg betflix เข้าสู่ระบบ
    BETFLIX เว็บไซต์ ตรง แพลตฟอร์ม การพนัน ที่ กำลังมา แรงที่สุด ปัจจุบันนี้ ผู้ให้บริการ สล็อตออนไลน์ รวบรวม เกมค่ายดัง จาก ทั่วทั้งโลก ตอบ ปัญหา ผู้เล่นที่กำลังมองหา เว็บไซต์ พนันออนไลน์ อันดับ 1 ที่มา พร้อมด้วย ทีมงาน คุณภาพ ที่มีประสบการณ์ม มากยิ่งกว่า ten ปี พร้อมที่ ์การเล่นที่ เยี่ยมที่สุด ให้ท่าน ลริการด้วย ความยินดี ใส่ใจ ทุกรายละเอียด ที่จะ ทำให้ท่าน ลืมที่ไปเลย ให้ผู้เล่นได้ มั่นอกมั่นใจ เลยว่า ลงทุนกับ พวกเรา ไม่มีทาง

  38. ABT-199 in vivo
    Individuals living in areas with the potential for elevated metal exposure from industrial sources may have reduced pulmonary function. We evaluated cross-sectional associations of toenail concentrations of 17 metals within a community area of residence and asthma control in 75 children, and pulmonary function measures [forced expiratory volume in one second (FEV1; liters), forced vital capacity (FVC; liters), FEV1

  39. Fluspirilene
    Measurements obtained with both methods were comparable. This study is the first description of the use of BioSPME tips for a therapeutic drug. BioSPME is a promising alternative for the preparation of biological specimens prior to the determination of therapeutic drugs by GC-MS.The present work compares VOC profiles of 37 Tokaj varietal wines produced from Furmint, Lipovina and Muškát žltý grape varieties determi

  40. best bunk beds for adults uk
    The Best Bunk Beds For Small Rooms

    Bunk beds can be a great solution for siblings sharing a bedroom. Look for a bunk bed with a sturdy staircase and plenty of storage space beneath the bottom bunk.

    Think about the wood material: It is durable and can last for a long amou

  42. https://www.selleckchem.com/products/dorsomorphin-2hcl.html
    This biochemical photoprotection included accumulation of zeaxanthin (an essential human micronutrient) and high levels of zeaxanthin-catalyzed thermal energy dissipation of excess excitation. Compared to the light levels needed to saturate L. gibba photosynthesis and growth, higher light levels were thus required for strong induction of the essential antioxidant

  43. 1,2,3,4,6-O-Pentagalloylglucose
    The second bottle-neck in current management is that of mandatory adrenal venous sampling for all but 1-2% of patients, a costly procedure requiring rare expertise. Ideally, it should be reserved – on the basis of likelihood, enhanced imaging, or peripheral steroid profiles – for a small minority of patients with clear evidence for unilateral disease. Only when costs are minimized and r

  44. ghost car immobiliser
    Ghost Immobiliser Price

    A Ghost Immobiliser offers many benefits to car owners. It adds an extra layer of security and could prevent vehicle theft. It can also help safeguard a car’s resale value and could even lower insurance costs.

    The technology blocks the ignition o

  45. JAK inhibitor
    The mechanical performance of composites made from isotactic polypropylene reinforced with natural fibres depends on the interface between fibre and matrix, as well as matrix crystallinity. Sizing the fibre surface with nucleating agents to promote transcrystallinity is a potential route to improve the mechanical properties. The sizing of thermo-mechanical pulp and regenerated cellulose (Tencel™) fibres with α- and β-nucleating ag

  46. fridges brands
    How to Choose the Best Fridges for Your Budget

    Your spending plan will determine which brands you can pay for, however even within your cost range you’ll discover differences in quality and functions. Try to find smart fridges that focus on quiet operation and deal noise-dampening technology.

    Watc

  47. NVP-2
    Plan-Do-Study-Act (PDSA) cycles are nearly universal within various quality improvement (QI) methodologies as a way of testing change prior to implementation. Simulation in health care has traditionally been used to improve teaching, enhance learning, and assess performance; however, it can also be powerful when used in the realm of QI work. Simulation is incredibly versatile and can be incorporated into the different phases of

  48. 789PRO
    In typically the ever-evolving world regarding online betting, finding a platform that will combines excitement, trustworthiness, and a wealth of opportunities can easily be a challenging task. Look simply no further than 789PRO, where you could unlock a new betting experience like most. With a new blend of impressive features and user-friendly design, 789PRO has established itself as a most recognized destination for both veteran bettors and beginne

  49. Selleck Sodium dichloroacetate
    Arterial pressure lability is common during the process of replacing syringes used for norepinephrine infusions in critically ill patients. It is unclear if there is an optimal approach to minimise arterial pressure instability during this procedures. We investigated whether ‘double pumping’ changeover (DPC) or automated changeover (AC) reduced blood pressure lability in critically

  50. 해외에이전시
    카지노 사이트.

    비디오를 통해 카지노 게임을 보내는 회사는 카지노 사이트를 통해 사용자와 연결됩니다.

    운영 기간이 짧고 사용자에게 제대로 돈을 인출하지 못하는 이른바 먹방 카지노 사이트를 항상 주의하십시오. 결과적으로 평판이 좋은 안전 카지노를 선택하고 사고를 예방하기 위해 게임을해야합니다.

    이 대행사가 추천하는 안전카지노 사이트는 플레이어들이 돈을 잃을 염려 없이 즐길 수 있는 인기 카지노 사이트입니다.

    회사는 카지노 라이센스에 따라 카지노 게임을 제공합니다.

    본 기관의 엄격한 안전 검증 절차를 통과한 업체입니다.

    회사

Leave a Reply

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