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.

283,154 thoughts on “Department Store Industry”

  2. 卡數找卡數
    一天和時間在哪裡金融卡和貸款傾向於可用的，許多人被糾纏在一起網絡債務。壓力處理大量付款可以感覺到體重那是沉重的肩膀，導致壓力和不確定性關於未來。值得慶幸的是，“一張卡重點”技術提供一種手段這當然是戰略性恢復您的經濟健康。此信息將探索這個過程這當然是有益解釋與如何合作財務專家可以提升您邁向貨幣穩定的旅程。

    所以，什麼是“一張焦點”方法？簡單地說，這是關於零利用一項債務 – 通常是特定的高利息信用卡，而專注於你們所有首先要花費良好的努力。經過中心債務重組這當然是孤獨的您簡化了還款程序並做它更可行。你得到了能量和靈感，可以推進有人去承擔額外的債務，並帶有新的自信即使你發現穩定性降低。

    與之互動財政專家可以提升繁榮與“一張焦點”方法。這些債務管理專業人員可以理解這些複雜性甚至可以提供量身定制的個性化技術您的具體情況。如果您感到超支由情況那是他們的指導非常有益。

  6. pg betflix เว็บตรง
    BETFLIX เว็บ ตรง แพลตฟอร์ม การเดิมพัน ที่ กำลังมา แรงที่สุด ในช่วงเวลานี้ ผู้ให้บริการ สล็อตออนไลน์ รวบรวม เกมค่ายดัง จาก ทั่วทั้งโลก ตอบ โจทย์ ผู้เล่นที่กำลังมองหา เว็บ พนันออนไลน์ ชั้น 1 ที่มา กับ ทีมงาน คุณภาพ ที่มีประสบการณ์ม มากกว่า 10 ปี พร้อมที่ ์การเล่นที่ ยอดเยี่ยม ให้แก่คุณ ลริการด้วย ความเต็มใจ ตั้งใจ ทุกรายละเอียด ที่จะ ทำให้คุณ ลืมที่ไปเลย ให้ผู้เล่นได้ เชื่อมั่น เลยว่า ลงทุนกับ เรา ไม่มีทาง ผิด

  7. symptoms for ADHD in adults
    Symptoms of ADHD in Adults

    Untreated ADHD can cause issues at work and in relationships. Being diagnosed and treated may help you deal with these issues.

    To determine whether you suffer from adult ADHD Your doctor will need to see if

  8. 瓜田李夏

    小說 – 極道騎士 – 极道骑士

    漫畫 – 魔理沙1分2 – 魔理沙1分2

    快到夕時，三一表人材相差了那兒隆重馬路，肖恩與莉麗回去了坎居里家，而依蘿.高修則是被順腳送回了高修房。

    吃過夜飯，返回庭當道，肖恩喚起源己的次元空中，有感裡面的情形。

    “公然。”

    這一感知，肖恩面上頓時突顯了果如其言的臉色。

    與上空自然改造前比，次元時間的容積發出了革新，由從來的三立方變爲了九正方體，體積足足外加了三倍，醒目，這是因爲空間天賦由等外質變爲中高檔二檔招的。

    認賬了次元長空的變換，肖恩心念一動，儲存了剛落的別有洞天一期長空天然力量——

  9. replacement car key with fob
    Replacing a Car Key Fob

    A replacement car key fob can be expensive, but you can sometimes save on the cost. You can reprogram an empty key fob, without going to the dealer, but it’s best to let an expert do it.

    <

  12. african blue parrot for sale
    African Grey Parrots

    African grey parrots are famous for their jovial personalities and remarkable intelligence. They can mimic human speech, solve puzzles, and form strong emotional bonds with their owners.

    In this video the Congo African grey named Griffin faces 21 Harva

  13. 4 seater leather sofa clearance
    4 Seater Brown Leather Sofa

    Leather sofas are a classic style for any living space. It can last for many years with proper maintenance. The kiln dried wood and engineered hard wood frame makes it strong.

    Its frame is constructed of birch, a hardwood that is warp-resistant. It features a seat cushio

  14. RTP Deluna4d
    Dalam dunia permainan kasino online, istilah “slot gacor” semakin populer di kalangan para pemain. Banyak yang mencari strategi dan tips untuk menemukan slot yang dapat memberikan keuntungan besar. Salah satu platform yang banyak dibicarakan adalah Deluna4D, yang dikenal karena menyuguhkan berbagai jenis permainan slot menarik dan peluang menang yang menggiurkan. Dengan kehadiran Deluna4D, pemain dapat merasakan pengalaman bermain yang le

  15. sweepstakes casino
    Establishing boundaries around mental involvement in the one-night stand is usually essential for making sure that you include a clear being familiar with of your personal needs and desires, and of which both you and your companion are on the same page. Emotional limits help protect your well-being, minimize confusion, and ensure of which the exp

  16. https://glazier-bermondsey.co.uk
    Ruined and Brought Back: Exactly How Glaziers Can Conserve Your Busted Windows

    At Shattered and Recovered, we understand the disappointment of having actually a broken home window. It not only compromises the safety and security and insulation of your home or organization yet additionally positions a safety risk to those inside. That’s why our team of specialist glaziers is here to aid you recover

  17. sunwin
    Pace – Online poker is faster than a live game. Online, there are very few shuffling, counting chips, etc, as computer software takes good this in a moment. Plus there are shorter limits to act when playing online. The whole day live player playing online for the very time, fresh is a welcome adapt. If you are an online player however, playing live can lead to boredom, distraction, and general

  20. ‎清卡數貸款
    在責任的時代那是經濟螺旋失控，很多人找到自己溺水債務。雜耍那是常數充電卡和貸款可以導致焦慮和沮喪。但是，“一張卡清除”方法給出了簡單和方法是有益的系統地解決您的債務。此信息將探索此方法以及如何與貨幣顧問互動可以提升你走向生活的旅程那是無債務。

    是什麼“一張卡清除”方法？這種策略鼓勵有人去優先級還款只有一個一次特定債務 – 通常充電卡通過高價的核心。經過中心首先還清此債務，您可以簡化還款過程並產生更清晰的通往自由這當然是經濟的。觀看那個特別平衡收縮可以啟發你幫助保留推動，製作職責那是一般打火機。

    與財務顧問合作可以放大許多好處的好處“一張卡清除”技術。這些專家精通進入債務管理的複雜性那可以提供量身定制的技術獻身於你的位置可以個人。你的自我不知所措財務困境，搜尋他們的指導可能是一種變革性的行動如果你學習。他們會評估你欠錢，允許你理解您的選擇，並做使用你一定

  21. This website is incredible. Its design is distinctive, and you’ve done an excellent job. Excellent Location. We are very grateful for this Location. Thanks. This is a fantastic piece. Keep working.
    Dehradun escort service

  22. leather recliner sofa 4 seater
    Buying a 4 Seater Faux Leather Sofa

    Leather sofas are an excellent way to add classic style and durability to your living room. They can be extremely comfortable. They look beautiful and can be used with any style of decor.

    Real leather is expensive however the comfort and durability it offer

  23. gas safety buckingham
    in Buckingham

    Many property owners work with gas safe engineers to service their boilers and to provide them with a Gas Safety Certificate. This is a legal requirement for landlords.

    About 250 homes are without gas after a

  24. It’s considerably less expensive! There are numerous advantages. The website allows you to get the details found in this Post. This is truly impressive. This Post is available for download.
    Mussooire escort service

  27. denna länk ger en förklaring
    Hur du får tillbaka dina lån och gör din ekonomi bättre

    Att samla in dina lån kan vara ett klokt drag för att öka ekonomin och sänka kostnaderna. Det handlar om att kombinera flera mindre lån och krediter till ett större lån, typiskt med bättre villkor. Genom att göra detta kan du sänka dina månadsvis kostnader, få en bättre känsla för din ekonomi och troligen spara pengar på l

  28. 롤대리
    When you are oral presentation in public, thither is ordinarily a time draw up that you demand to control stick to. Piss certain that you have to your cay points ahead your time is up. Otherwise, you volition have squandered whole of our metre since the consultation leave non get accepted the content you were trying to birth.

    Happen one mortal in the herd World Health Organiz

  29. alk signal
    Following, I talk about the social implications of reproductive-religiosity, including spouse selection and trust. Finally, we talk about the prospective role of mating strategies when you look at the evolution and social evolution of religion and discuss future instructions for developing an approach to religion rooted in mating interests

  31. reading boarding up windows
    24 Hour Boarding Up Service Near Me

    Protect your business or home from storm damage, theft vandalism, storm damage and criminal damage by board up. It also deters squatters. may be covered by insurance.

    The cost of boarding your property will depend on the amount and size of windows you’ll must co

  34. 99ok
    Nhà chiếc 99Ok là một trong những nền móng trực tuyến vượt bậc trong ngành cá cược. mang phổ quát nhà sản xuất phổ biến và quyến rũ, nhà loại này đã thu hút được sự quan tâm của rộng rãi người chơi trên khắp cả nước.

    Tổng quan về Nhà loại 99Ok

    Nhà dòng 99Ok ko chỉ thuần tuý là một nền móng cá cược mà còn là nơi tụ họp của hàng triệu tình nhân thích trò chơi may rủi. Trong phần này, chúng ta sẽ đi s

  36. https://friernbarnetgasengineers.co.uk
    Exactly how to Detect a Trustworthy Cooling And Heating Contractor: Advice

    At our firm, we understand the importance of locating a credible cooling and heating service provider. Your heating, ventilation, and a/c system play a crucial duty in maintaining your home comfortable and risk-free, and it’s vital to have a specialist you can rely on. With so many alternatives available, it can

  37. female african grey parrot
    The Intelligent African Grey Parrot

    African grey parrots, due to their intelligence and beauty are among the most popular birds in Europe and America. They can imitate human speech.

    However, this isn’t enough to safeguard them in the wild, as they are seized and sold to the international trade in pets. This is a serious problem for wildlife conservati

  39. gas certificates buckingham
    Gas Safety Inspections For Landlords

    Landlords are legally required to have all gas devices and pipework examined by a qualified Gas Safe engineer every year. This is done to avoid carbon monoxide poisoning which could eliminate.

    It is also a legal requirement for landlords to display understandable copies of the Gas Safety Certi

  40. check it out
    Baby African Grey Parrot

    These birds are as smart and playful as a 5-year-old child. They need a lot attention. They must be in a position to play, receive exercise, undergo regular medical checkups (with an avian veterinarian), and eat well.

    A baby parrot with eyes closed is referred to as a neonate. It is dependent on its human parents or parents for fo

  41. timneh african grey parrot
    The Cost of Buying an African Grey Parrot

    A large investment, buying an African Grey Parrot. The bird’s lifespan is up to 50 years, so you’ll need to make sure that you’re ready to make the long-term commitment.

    It is best to buy an infant African Grey from a reputable breed

  43. Driving Lessons Edinburgh
    Taking Driving Lessons in Louth

    One of the most effective ways to learn how to drive is with a driving instructor who has been approved by RSA in Louth. Our instructors can help you gain confidence behind the wheel and pass your test on the first attempt.

    A Lincoln College construction student is scheduled to receive fr

  44. dual fuel range cooker sale
    How to Clean a Dual Range Cooker

    A dual range cooker brings together the advantages of an electric and gas cooker. It offers precision in baking and quick adjustments to the stovetop, making it ideal for those who like to try new recipes.

    Gas cooktops allow for precise

  45. best detachable bunk beds
    How to Choose the Best Triple Bunk Bed

    A triple bunk is a clever upgrade to the toddler bed your kids have outgrown. It offers a fun and efficient sleeping solution that is both secure and beautiful.

    The best triple bunk bed comes with full-length rails, a slatted base that eliminates

  46. wood burners near me
    Proper Use and Maintenance of a Wood Heater Stove

    A wood stove is a great way to warm your home and can also heat the entire home. However, some of these appliances emit harmful gases like creosote which can be dangerous to the health of your family and property.

    It is crucial to take care

  47. hop over to these guys
    Sinatra Macaws for Sale

    Macaws thrive on social interactions and require a lot of attention. They also require a large cage and plenty of toys and enrichment items. You should only adopt or buy from a trusted bird rescue or breeder.

    Before you look at Sinatra Macaws for Sale, think about the one-time co

  48. gas safety buckingham
    Why Landlords Need a Gas Safety Check

    Landlords are required by law to have their gas appliances and pipework checked annually. The inspection is performed by a licensed expert and makes sure the safety of renters.

    In addition to ensuring compliance with legal requirements, a gas safety check offe

  49. simply click the next internet site
    How Much Room Do You Have For a Small Wood Burning Stove?

    Many people love wood stoves because of their warm and cozy atmosphere, as well as the joy of creating an fire. There are a few things to consider when selecting the most efficient small wood-burning stove for your home.

    For example, yo

  50. m11 slot
    Sejumlah salah satunya ingin memainkan permainan taruhan judi online akan tetapi pula banyak antara lain yang tidak mengerti bagaimanakah cara memainkan permainan tanpa modal. Sekian lama ini Mayoritas orang pengen bermain tampil tak mau keluarkan modal di mana itu menjadi salah satunya ciri-ciri inti dari orang terlebih pula di Indonesia. Untuk itu bahwasanya Anda harus bertanya dan dapatkan peluang untuk dapat bermain tanpa memanfaatkan modal.
    <b

Leave a Reply

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