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.

407,246 thoughts on “Department Store Industry”

  1. just click the up coming internet page
    Women earned nearly 60% of all bachelor’s degrees awarded latest years years, versus 43% in 1970 and 24% in 1950. Women earned a similar share of master’s amounts.

    I assume American’s have a fear from external the Unites states.but as the unthinkable events of 9/11 showed usa.that the threat could certainly be there. So, in 2009, who is Ame

  2. dual fuel range cooker sale
    Dual Fuel Range – The Ultimate Kitchen Appliance

    A dual fuel range is a popular choice among professional chefs and experienced home cooks. These high-end appliances are able to provide fast heating of the burner and precise oven control for power in one powerful appliance.

  3. scr7 inhibitor
    Timely care of patients while ensuring protection of healthcare employees is need of this hour. We list few precautionary measures that can be taken after all radiotherapy centers, during the pandemic to curb and fight the scatter for this disease.Malignant peripheral nerve sheath tumors (MPNSTs) of parapharyngeal room tend to be uncommon and if present ‘re

  4. leather 4 seater recliner sofa
    4 Seater Leather Sofa Clearance

    Add elegance to your living space by putting in a leather sofa. Pottery Barn has a variety of styles and sizes to make the perfect fit for any space.

    This piece is durable for everyday use thanks to its wood frame that has been kiln dr

  5. I’m gone to convey my little brother, that he should
    also pay a quick visit this blog on regular basis to
    take updated from most recent news.

    Feel free to surf to my blog … children nude

  6. Maa Shayari in Hindi
    In the tapestry of our lives, there exists a bond that is unparalleled and deeply cherished: the love for our mothers. Maa, the very word evokes emotions that are intertwined with warmth, affection, and a sense of safety. From our first steps to our milestones, the unwavering support and unconditional love of a mother shape our very being. Capturi

  7. betflik ทางเข้า
    BETFLIX เว็บไซต์ ตรง แพลตฟอร์ม การเดิมพัน ที่ กำลังเดินทางมา แรงที่สุด ในช่วงเวลานี้ ผู้ให้บริการ สล็อตออนไลน์ เก็บ เกมค่ายดัง จาก ทั่วทั้งโลก ตอบ ปัญหา ผู้เล่นที่กำลังมองหา เว็บ พนันออนไลน์ ชั้น 1 ที่มา กับ คณะทำงาน คุณภาพ ที่มีประสบการณ์ม มากกว่า ปี พร้อมที่จะมอบประสบการณ์การเล่นที่ เยี่ยมที่สุด ให้แก่คุณ ลริการด้วย ความสมัครใจ ตั้งใจ ทุกรายละเอียด ที่จะ ทำให้คุณ ลืมที่ไปเลย ให้ผู้เล่นได้ เชื่อมั่น เลยว่า ลงทุนกับ เรา ไม่มีทาง ผิด

  8. adhd online tests
    ADHD Self-Assessment Tools

    A thorough and high-quality assessment is crucial. It must include semi-structured interviews with open questions and elaborate, probing and real life examples. It should also inquire questions about how core ADHD symptoms affect functioning in various settings, such as education and em

  9. sunwin
    Gambling is starting to become a recognized element of popular culture, similar to recreational functions. It is just like attending films, athletic events and also concerts or stage gambles on. In New Zealand, a large majority of Kiwis who gamble at New Zealand casinos occur as a form of relaxation with great reservations that running barefoot would have unfavorable the effe

  10. timneh african grey parrot
    African Grey Parrot Care

    African greys are easy to train once they’ve been introduced to operant conditioning and positive reinforcement. Pet owners who aren’t familiar with the process might find themselves overwhelmed.

    These intelligent birds require constant attention, free-of-cage exercis

  11. click here now
    Marine trailer locks are essential security devices made to protect trailers carrying boats, jetskis, as well as other watercraft. These locks safeguard trailers from theft by securing the coupling or hitch, preventing unauthorized towing. Given the high value of boats along with other marine equipment, utilizing a reliable trailer lock is cr

  12. sunwin
    The first point in order to out for on a dsl is the winnings ration. A ratio that is simply high means the books are being cooked, in order to be precise the games in instance. The next thing will be to take care that the online casino is tied plan a very reputable accountancy service or firm. This kind of give which you good involving the quantities of honesty within the online land based casino.

    <

  13. rapi138
    Judi online telah menjadi masalah serius di era digital ini, menyamar sebagai hiburan yang menawarkan keuntungan instan. Seperti predator yang bersembunyi di balik topeng menarik, platform judi online dibuat dengan warna-warni memikat dan efek suara yang merangsang dopamin di otak. Perlahan-lahan, seseorang bisa terjerumus dalam lingkaran setan ketergant

  14. locks for boat trailers
    Boat and jet ski trailer coupling locks are very important security devices designed to prevent unauthorized attachment and towing of trailers carrying valuable watercraft. These locks are particularly useful for owners who leave their trailers parked in public places, boat ramps, marinas, or storage facilities, since they secure the trailer’s coupling, making it almost impossible for a

  17. wood burning fires
    Installing Small Woodburners Safely

    A small woodburner can add warmth to any room no matter if it’s small or an outdoor cabin. But, there are some guidelines you must adhere to to ensure your stove is set up in a safe manner.

    These guidelines include ensuring certain distances between the

  18. click through the following article
    What to Look For in a Wood Burner Clearance Sale

    Efficiency

    If you are looking for a sale or clearance on wood burners, be aware of the effectiveness of the appliance. The efficiency of a wood burner measures how much heat is absorbed into your home, rather than up the chimney. This directly relates to how much firewood you buy and how often you

  19. best brand fridge freezer
    Finest Refrigerators Brands

    Whether you’re replacing an old fridge, buying a second fridge for the garage or getting a mini fridge for the workplace, selecting the best brand is essential. Look for brands with long lasting fridges, that are easy to tidy which use the functions you require.

    <

  20. best brand of refrigerator
    The Best Fridge Brands

    Fridges are a big purchase, so you want to select one that is dependable and durable. You may likewise have particular needs, like additional features or a quiet model.

    For example, LG stays up to date with home appliance innovations and uses Wi-Fi-connected fridges and fancy

  21. click through the following article
    Heat Your Home With a Freestanding Wood Burning Stove

    This wood stove is EPA certified to meet the emission standards. It can accommodate logs up 20 inches in length. It also has a ceramic-glass window to allow you to admire the flame.

    As opposed to an insert, a freestanding stove does not require chimneys which makes it simple to install in any room

  22. adhd online testing
    ADHD Online Test – Symptoms of Attention Deficit Hyperactivity Disorder

    ADHD can cause problems at work and in school. It is important to evaluate ADHD at any age. This online test based on an Amen Clinics screening tool can help you assess symptoms.

    This quiz is not a diagnosis, but can help you find a mental health professional who can analyze your symptoms.
    <

  23. soicaumt.com
    Trong thế giới của xổ số, việc soicau mt trở thành một chủ đề thu hút sự quan tâm mạnh mẽ. Nhiều người chơi hy vọng rằng những dự đoán chính xác có thể giúp họ giành chiến thắng lớn hơn trong các kỳ quay số. Tuy nhiên, không chỉ đơn thuần là những con số, mà còn là nghệ thuật phân tích và lựa chọn.

    Soi cầu, hay cụ thể hơn là soi cầu MT, là cách thức mà nhi

  24. Sinatra Macaws for Sale
    How to Tame a Blue Macaw and Red Macaw

    Macaws typically choose an mate for life and spend the majority of their time together, sharing food, grooming and caring for young. Unfortunately, these majestic birds are teetering towards disappearing from their habitats.

    Humans’ destruction of habitats and cage bird trade and poaching pose a major threat to this bea

  27. replacement electronic car key fob
    Replacement Car Key Fobs Near Me

    Modern automobiles require key fobs that can be placed in the dashboard or in some newer models, stay in your pocket. These aren’t merely pieces of metal you can cut at a mall self-service kiosk.

    They are equipped with transponde

  28. https://canvas.instructure.com/eportfolios/3367521/home/mian-tuyi-si-does-your-loan-pass-the-test-7-things-you-can-improve-on-today-eloan-dot-ltd
    在責任的時代那是經濟螺旋失控，許多人結果溺水債務。雜耍那是常數信用卡和貸款可能導致焦慮和沮喪。但是，“一張卡清除”方法給出了直接和方法是有益的系統地解決您的債務。接下來的幾段將探索此方法和確切的方法與貨幣顧問互動可以提升你走向生活的旅程那是無債務。

    什麼是“一張卡清除”方法？這種策略鼓勵一個優先級還款只有一

  29. gas safety inspection buckingham
    Gas Safety Inspections For Landlords

    Landlords are legally needed to have all gas devices and pipework checked by a certified Gas Safe engineer every year. This is done to avoid carbon monoxide gas poisoning which could kill.

    It is also a legal requirement for landlords to

  30. https://www.riptapparel.com/pages/member?vebotv1com

    The reality that is, these “reviews” and websites turn out to be referred to as a presell in internet marketing world. These kinds of designed in order to assist reinforce anyone already to be able to believe upon the product, as a way to “confirm” purchasing to be a wise sole. Many will be vague about the contents given that the writer has

  31. replacement for key fob
    Mobile Car Key Fob Replacement Near Me

    When you’re rushing to the grocery store or loading your trunk with the kids after a day at the park, misplacing your keys to your car happens at the most unavoidable times. Luckily, it’s not impossible to find your keys with the appropriate tools.

    Be aware of these tips prior to calling roadside assistanc

  33. Comprar carta de condução da categoria C
    Buy Category B1 Driving License

    In an age where mobility requirements continue to evolve and change, the B1 category driving license offers an incredibly flexible solution that caters to the needs of urban dwellers as well as cost conscious people. The eligibility criteria and the practical

  34. small leather sofa
    Leather Couches For Sale at West Elm

    Find top-grain or full-grain leather when you are shopping for a new sofa. Avoid bonded leather, as it is cheaper but will crack and peel in time. Check for the double-rub count, which shows how well a particular material is able to resist back and forth rubbing.

    This black beauty from Minnesota-based Blu Dot combines styl

  35. soicaumt.com
    Trong thế giới của xổ số, việc soicau mt trở thành một chủ đề thu hút sự quan tâm mạnh mẽ. Nhiều người chơi hy vọng rằng những dự đoán chính xác có thể giúp họ giành chiến thắng lớn hơn trong các kỳ quay số. Tuy nhiên, không chỉ đơn thuần là những con số, mà còn là nghệ thuật phân tích và lựa chọn.

    Soi cầu, hay cụ thể hơn là soi cầu MT, là cách thức mà nhiề

  36. azd7762 inhibitor
    Similarly, medical knowledge did not modification. Scientific studies and critiques gave little or modest attention to the increasing dominance of persistent infection and neglected aspects of good care. Recently, some wellness solutions answering their developing range patients with persistent illness have created and tested brand new means of off

  37. hoki 311
    penting dipahami kalau tiap-tiap spek slots online sebagai halnya disebut sebelumnya memanglah miliki guna dan miliki andil semasing. untuk itu penting buat kita dapat mengenali terkait kegunaan dan peranan ialah biar lantas kita mengetahui serta mengetahui apa sebenarnya yang penting kita laksanakan. wawasan yang bagus akan peranan dan andil benar-benar menjadi salah satunya sisi penting yang penting jadi perhatian secara baik. ada rusa pahami ben

  38. best bunk bed with desk
    How to Choose the Best Loft Bunk Beds

    This streamlined wood loft is a great choice for children who are ready to move to a higher level from their toddler bed. It’s crafted in a Fair Trade factory and has a 13-inch guardrail, which wraps around the upper level that makes ascents and downs safe for all.

    <b

  39. buy macaw
    Sinatra Macaws for Sale

    Macaws thrive on social interaction and require a lot of attention. They also require a huge cage and plenty of toys and enrichment materials. Make sure you purchase or adopt from a reputable breeder or bird rescue.

    Before you look at Sinatra Macaws for Sale, take into consideration the one-time

  40. Sinatra Macaws for Sale
    Hyacinth Macaw For Sale

    Hyacinth macaws for auction are large parrots with an impressive personality. They develop strong bonds with their owners and they are an entire family. They are social animals and require mental stimulation through games, puzzles, and challenges.

    Hyacinth Macaws live up to 60plus years. They require a lifetime c

  41. https://gamehoki311.com/
    Abad saat ini tehnologi kian hebat dan hal demikian terjadi di sebuah permainan. Waktu ini banyak permainan online yang bisa mengaksesnya lewat suatu telpon seluler modern. Manalagi waktu ini hp sudah membikin siapa saja mempunyainya. Hal demikian lantaran hp udah untuk jadi keperluan yang bisa mendukung lancarnya suatu pekerjaan.Dan tidaklah heran kalau sekarang suatu permainan online sudah untuk jadi dunia atau kegemaran anyar ol

  42. check out here
    Learning to Drive – Why You Need Professional Driving Lessons

    Learning to drive is a valuable ability that has numerous benefits. It allows you to travel independently without being restricted to bus routes or other people’s availability for rides. This flexibility makes it easier to travel to jobs, events, and social activities.

    <br

  43. richmond Double Glazing Repairs
    Double Glazed Door Repairs

    Double-glazed windows and doors keep draughts and noise away and allow heat to enter. This minimizes disruption caused by barking dogs as well as traffic in nearby roads. They also act as a security measure against burglars since they’re hard to break.

    But just lik

  44. adhd online tests
    ADHD Online Tests – Can They Replace an In-Person Evaluation?

    Online ADHD tests are a great instrument to determine the severity of. However, they cannot substitute for a thorough evaluation in person by a mental health professional.

    The most common test involves the completion o

  45. oxford boarding up windows
    Boarding Up Doors and Windows

    Boarding up doors and windows is one of the most effective methods to safeguard your home from harm. It also helps in preventing vandalism, theft and squatters.

    A building that is open can be a magnet for squirrels, squatters and other pests that are not welcome. A well

  46. https://www.youtube.com/@hb88legal
    C. Cooktops: Gas ranges have the longest life expectancy (later blog), but current efficiency, only 55% of the energy used goes directly toward cooking the cuisine. Electric ranges are 80% efficient.

    Natural sweetness from fruits, honey and small sums of sugar is going to be better that in the long run. There is no shortcut to controlling sweets. But we could have them if t

  47. discover here
    are essential security devices designed to protect trailers carrying boats, jet skis, as well as other watercraft. These locks safeguard trailers from theft by securing the coupling or hitch, preventing unauthorized towing. Given the high value of boats and also other marine equipment, employing a reliable trailer lock is crucial when leaving a trailer parked at marinas, boat ramps, or storage facilit

  48. link web page
    How to Choose the Best Convertible Bunk Beds

    Bunk beds are an ideal way for kids to reduce space and add a playful touch to their rooms. How do you choose the most suitable one?

    If your kids have outgrown the bunk bed arrangement Choose a bunk that can be separated into two beds. The most suitable bunk beds are sturdy and have a design that can accommodate sleepovers and

  49. https://juicyfluffy.com/
    satu diantara risiko mempunyai situs judi di indonesia terutamanya ialah mengenai blokir internet positif. hal itu jadi satu hal yang paling lumrah sekali tetapi terdapat beberapa hal yang perlu anda cermati secara baik seluruhnya. dalam perihal tersebut, anda mesti pikir secara baik bagaimanakah cara membuka situs slots yang mengenai blokir itu. bakal ada selalu metode yang dapat dikerjakan biar lantas kita masih dapat buka situs

  50. https://foresthillgasengineers.co.uk
    Common Cooling And Heating Blunders to Prevent: Pick Up From the Experts

    At HVAC Contractors, we comprehend the importance of having a well-functioning heating and cooling system in your house or workplace. An effectively working a/c system not only gives convenience and boosted air high quality, however it additionally helps to save power and reduced uti

Leave a Reply

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