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.

261,593 thoughts on “Department Store Industry”

  1. Narożniki
    to nie tylko meble, ale prawdziwe serce każdego salonu. Umożliwiają stworzenie przytulnej przestrzeni do relaksu, spotkań z rodziną oraz przyjaciółmi. Wybór idealnego narożnika nie jest jednak prostą sprawą. Wymaga on przemyślenia kilku istotnych kwestii, aby nie tylko dobrze wyglądał, ale także spełniał nasze codzienne potrzeby.

    <

  2. bioethanol fire media wall
    Bio Ethanol Wall Mount Fireplace

    A bio ethanol wall mount fireplace is a special design piece that will draw the attention of anyone who sees it. They are frequently utilized inside but can also be mounted outdoors.

    Before utilizing a wall mounted bio fire, it is essential to inspect its load-bearing capacity and guarantee that th

  4. read more
    In this paper, we report on the spectral detection of wustite, Fe(II) oxide (FeO), and magnetite, Fe(II, III) oxide (Fe3O4), molecular emissions during the combustion of pyrite (FeS2), in a laboratory-scale furnace operating at high temperatures. These species are typically generated by reactions occurring during the combustion (oxidation) of this iron sulfide mineral. Two detection schemes are addressed the first consis

  5. central heating engineers buckingham
    Gas Safety in Buckingham

    Carbon monoxide gas poisoning is a really serious health danger that can eliminate in just hours. It is essential to have regular gas safety checks conducted by an engineer.

    Landlords are needed to have their homes inspected every year by Gas Safe signed up engineers. This is so that they can ensure

  6. 17-aag inhibitor
    Last year, an overall total of 185 Swedish teenagers (aged 15 to 19 years) from two top secondary schools took part in this cross-sectional research. We utilized three different psychometric scales Pittsburgh Sleep Quality Index (PSQI), Symptoms Checklist (SCL-90), and Perceived Stress Scale (PSS) to measure sleep, basic psychiatric health and recogn

  7. car key and fob replacement
    Fob Car Key Replacement

    A car key fob emits a low-frequency signal that allows you to unlock the doors or to start the engine. Different brands employ different frequencies to improve security. Some car fobs fold in the side-view mirrors, which can help prevent damage from heavy shoppers

  8. Driving Lessons Scunthorpe
    Driving Lessons in Louth

    Driving lessons in Louth are an essential part of learning to drive. A certified instructor can help you learn the fundamentals required to pass your test and become a safe lifelong driver.

    The Essential Driver Training (EDT) is a 12-lesson program that is designed to help n

  9. Slot Pragmatic
    Dalam dunia perjudian online, permainan slot menjadi salah satu pilihan favorit bagi banyak pemain. Terlebih lagi, dengan adanya konsep Return to Player atau RTP, pemain dapat lebih mudah menentukan mana slot yang memberikan peluang terbaik untuk menang. Jika Anda sedang mencari permainan slot dengan RTP tertinggi, Anda berada di tempat yang tepat.

    <b

  10. Hey There. I found your blog using msn. This is a really well
    written article. I will make sure to bookmark it and return to read more
    of your useful info. Thanks for the post. I’ll definitely return.

    Look at my website – anonymous crypto casino

  11. https://hiopmassage.com/
    Subnetworks are small laptop networks that connect with a much bigger community via a router. The subnet may be assigned its own IP tackle system, so that every one gadgets connecting to it could communicate with each other without having to ship knowledge via the wider network. Build, run, and scale your applications on a cloud that’s secure by design. Your gadget password is the one barrier that can limit folks from accessing you

  13. https://starrwheelgroup.com/
    In today’s fast-paced digital world, finding a gaming platform that combines excitement, innovation, and reliability can be a challenge. Enter Mega717, a platform that is setting new benchmarks in the gaming industry. With its user-centric design, robust offerings, and commitment to excellence, Mega717 has become a favorite among gaming enthusiasts.

    Why Mega717 Stands Out

  14. baby bedside co sleeper
    Bedside Cot Sale – Get the Best Deals on Bedside Cribs For Newborns

    These cribs are designed to sit just next to your bed. make feeding at night and diaper changes much easier. Additionally, they’re great for helping newborns go back to sleep.

    MFM mum Jasmine liked that it was easy to move about the

  15. Taurus and Leo compatibility

    Taurus and Leo compatibility

    The first time Elena, a reliable Taurus, met Julian, a magnetic Leo, something unexpected happened. It was at a neighborhood block party, where Julian was the life of the party, sharing a lively narrative with an enthralled audience. Elena, sitting at a nearby table, calmly enjoyed her drink

  16. african grey parrot baby for sale
    The Daughter of a Female African Grey Parrot

    The daughter wanted to help her father’s parrot adjust to his new environment. She tried for a long time to get him to taste new foods and to come out of his cage. was visibly unhappy with his surroundings.

    The best met

  18. this website
    The largest loss is observed for few subjects per day and a large number of weeks. An example of the effect of waiting room environments in reducing stress in dental care shows how different design options can be compared. An R Shiny app allows researchers to interactively explore various design options and to choose the best design for their trial.The current study aims to compare injectable and oral first-line diseas

  19. best fridge freezers
    How to Choose the very best Brand for Your Refrigerator

    A refrigerator is a big purchase, and the brand you select will affect how your fridge performs with time. Picking a brand name that is relied on by consumers is a great idea, but many factors go into the choice.

    Bosch is understood for its cooking area dev

  20. I-138
    a newsight for elucidation of functional changes of TCMs in vivo.Climate change is expected to increase extreme weather events, such as more extreme drought and rainfall incidences, with consequences for ecosystem carbon (C) cycling. An understanding of how drying and rewetting (DRW) events affect microbe-mediated soil processes is therefore critical to the predictions of future climate. Here, a reciprocal-transplant experiment

  21. best wall mounted ethanol fireplace
    Bioethanol Fireplace Media Wall

    A bioethanol fireplace media wall is a terrific method to include atmosphere and heat to your home. They are simple to install and require no chimney. They are also safe to utilize when utilized correctly.

    To use, simply pour the biofuel into the fuel container and light. You can also include a decorative scree

  22. ratu311
    sikap bijaksana di dalam permainan apa saja memang sangat perlu dan sangat penting dipakai di dalam permainan apa saja termasuk dalam perjudian slots online. anda mesti yakini buat punyai sikap arif karena karena itu anda dapat mendapati sejumlah keuntungan dari permainan itu. paling tidak ada dapat usaha untuk mengenali bagaimana tekniknya supaya kamu di mana dapat mendapat kemenangan seringkali serta menjauhi diri dari kekalahan.

  23. parrots african grey for sale
    Zuri – A Remarkable Bird For Sale

    Zuri is looking for a home that will give him affection, companionship and the chance to enrich his life through conversations and laughter. Zuri will be a wonderful lifelong family member.

    African Grey’s are a highly v

  24. L-685,458 price
    45. As feline leishmaniasis could be a potential risk in endemic areas, FML-ELISA could be considered as an appropriate examination to detect leishmaniasis in cats.In this study, we aimed to record, for the first time, parasitic infestation by the isopod Probopyrus pandalicola on the prawn Macrobrachium acanthurus, as well as to register some ecological interactions. We hypothesized that the parasitic infection is

  25. look at here
    Best Quality Bunk Beds

    There are a variety of options for your kids, whether they want to add bunk beds in their bedroom for fun or for practical reasons. You should also take into consideration the size, room, ceiling height, style, and budget.

    Depending on the manufacturer, most bunkbeds come with either stairs or

  26. click here
    pH gradient-driven modular micro-swimmers are investigated as a model for a large variety of quasi-two-dimensional chemi-phoretic self-propelled entities. Using three-channel micro-photometry, we obtain a precise large field mapping of pH at a spatial resolution of a few microns and a pH resolution of [Formula see text] units for swimmers of different velocities propelling on two differently charged substrates. We model our results in terms

  27. Selleckchem S961
    However, the accuracy and precision of the IT approach should be further investigated using a larger sample. Thieme Medical Publishers 333 Seventh Avenue, New York, NY 10001, USA.A wide array of therapeutic effects has been exhibited by compounds isolated from natural sources. “Bio-actives of endophytic origin” is a recently explored area that came into recognition over the last 2 decades. Literature search on the sec

  28. Smad signal
    Better in-the-moment social contacts associated with better health. Horizontal collectivism moderated some, yet not all organizations between social contacts and health. Personal connections are multidimensional and differently predict in-the-moment wellness among Latino/a college students just who much more highly endorse horizontal collectivistic values. We discuss ramification

  29. conversational tone
    Ghost Immobiliser Price

    A Ghost Immobiliser provides many benefits to car owners. It adds an additional layer to security and can help prevent theft of a vehicle. It also helps protect a car’s resale value and can even cut down on the cost of insurance.

    The technology prevents a car’s ignition from starting without

  30. central heating engineers buckingham
    Gas Safety in Buckingham

    Carbon monoxide gas poisoning is a really major health risk that can eliminate in just hours. It is essential to have routine gas safety checks performed by an engineer.

    Landlords are needed to have their properties examined yearly by Gas Safe registered engineers. This is so that they ca

  31. gypsy oracle cards
    Frühe Ursprünge

    Ursprünge von Kartenspielen haben ihren Ursprung in dem alten China um das 9. Jahrhundert herum. Diese ursprünglichen Karten wurden oft auf Papierbasis gefertigt und dienten sowohl als Spiel als auch als Zahlungsmittel.

    Verbreitung nach Europa

    Im 14. Jahrhundert erreichten Kartenspiele Europa üb

  32. This Webpage
    Taking Driving Lessons in Louth

    One of the most effective methods to learn to drive is to work with an instructor who is approved by RSA in Louth. Our instructors can help you build confidence behind the wheels and pass your test the first time.

    Lincoln College construction st

  33. BLU-667 ic50
    Cardiovascular diseases (CVDs) are the number one cause of death globally, with low- and middle-income countries being affected disproportionately. By 2020, it is projected that there will be 25 million deaths from CVD worldwide, 19 million of which would be from middle- and low-income countries.

    The aim of this study was to estimate the 10-year risk of cardiovascular events amon

  34. central heating engineers buckingham
    Emergency Gas Engineer in Buckingham

    Whether you need boiler repair work, upkeep, or replacements, our expert team can assist. We likewise use heating unit installations and other services to fulfill your requirements.

    When you experience a gas emergency, shut off the supply at your gas meter (supplied it is not in a location that is inaccessib

  35. Double Glazing Repair
    Repairing Double Glazed Windows

    Double glazing can help you save money and energy costs on your household bills. However, if your windows and doors are difficult to open or have sagged they can reduce their thermal efficiency.

    The space between the glass panes of a double glazed window is fille

  36. buy 2-Bromohexadecanoic
    The results of our meta-analysis suggest that prior peripheral neuropathic conditions have strong evidence for failure to achieve union. Surgeons should be cognizant of these risks when performing TTCA and carefully monitor patients with the aforementioned comorbidity to achieve successful results.There is a controversy in regards to the efficacy of photobiomodulation (PBM) in the management

  37. Selleck BMN 673
    A tracheo-innominate fistula is a rare but life-threatening complication of tracheostomy and has a mortality rate of 100% without therapy. The underlying cause is an acquired fistula between the brachiocephalic trunk and the trachea, induced by a tracheostomy cannula’s mechanical impact.

    A 25-year-old female was admitted with pulsatile bleeding from a tracheostomy. The cause o

  38. car fob replacement key
    How to Get a Replacement Car Key Fob

    It used to be that if you lost your car key and you were unable to find it, you could go to your local hardware store to have a simple metal key cut while you stood in line. You’ll need to visit an auto dealer or locksmith to purchase a key fob to unlock your doors and start the engine.

    Buy a New Battery

    <br

  39. redirected here
    Shopping For a Four Seater Leather Couch

    There are many choices to consider when looking for a 4 seater leather sofa. You’ll want to compare sofas’ dimensions and consider the way they fit in your home’s doors, hallways and staircases. You should verify if the sofas come with power or manual recline mechanisms.

  40. mega717
    In a world where online entertainment evolves rapidly, Mega717 has emerged as a trailblazer, offering an extraordinary gaming platform that captivates players with its innovation, variety, and trustworthiness. Mega717 is not just a gaming hub; it’s a vibrant community where players discover excitement and opportunities like never before.

    The Mega717 Difference

    Diverse Game Selecti

  41. ADHD and adults symptoms
    Symptoms of ADHD in Adults Female

    Many women who live with ADHD are not given an diagnosis until they reach adulthood. This is due to lingering stereotypes and referral biases, which cover up the comorbidities, behavior, and hormonal changes.

    Symptoms of ADHD in adults female may b

  42. ratu311
    buat banyak pemain pemula yang demikian menyenangi taruhan judi slots online, karenanya baiknya saat sebelum mengawali taruhan itu kerjakan penyiapan lebih dulu. dengan penyiapan itu, maka dapat ringan untuk beberapa pemula untuk temukan kelapangan di saat main. maka kesempatan menang akan ada terus buat mereka.

    penyiapan modal untuk bermain

    betaruh seharusnya menyediakan modal untuk main. di mana modal sangat dip

  43. 1bet1
    This ever trusted online casino is truly one of the original casino planet web. Their doors opened in 2007 for players that want different associated with thrill and excitement in gambling. Buying a go wrong with this casino currently under the supervision in the trusted English Harbour Group that is well know of holding and operating top internet casinos. And with it, Caribbean Gold Casino is making use of th

  44. SC79
    Introduction Our aim was to determine the relationship between surgical compliance and survival outcomes in patients with stage T1-2 non-small-cell lung cancer (NSCLC). Methods Patients with T1-2 NSCLC who were diagnosed between 2004 and 2015 were identified from the SEER database. Multivariate logistic regression was used to analyse factors associated with surgical compliance. Kaplan-Meier curves and Cox regression were used to

  45. Driving Lessons Edinburgh
    Buy UK Drivers License Online

    The process of obtaining the UK driving licence is an essential step to unlocking new opportunities and adventures. You can avoid public transport delays and enjoy stunning countryside views.

    But the process can be daunting. Here are

  46. c1 zertifikat kaufen
    Buy a B1 Certificate Without Exam

    The B1 German certificate is a very important document for foreigners to have in Germany. It proves that you’re competent in German, and can be used in daily life. It is a requirement to obtain citizenship.

    The CEFR assessment sys

  47. https://top9gamebaidoithuong.com
    Game bài luôn là món ăn tinh thần của nhiều người khi muốn giải trí. Với sự phát triển của công nghệ, trò chơi bài trực tuyến đã trở thành một phần quan trọng của nhiều người chơi. Không chỉ là một trò chơi, game bài còn thúc đẩy người chơi phát triển kỹ năng và giải trí.

    Game bài là một bộ môn rất phổ biến trong cộng đồng người chơi. Các trò chơi bài như mậu binh đều là các tr

  48. best fridge brands uk
    How to Choose the Best Brand for Your Refrigerator

    A fridge is a huge purchase, and the brand you choose will impact how your fridge carries out in time. Selecting a brand that is relied on by customers is an excellent idea, but many elements enter into the decision.

  49. Automatic pet feeder
    As pet owners, we all want the best for our furry companions. With busy lifestyles and the demands of everyday life, ensuring that our pets receive consistent and nutritious meals can sometimes feel like a daunting task. Enter the automatic pet feeder, a game-changing solution that takes the stress out of mealtime and provides numerous benefits for both pets and their owners.

  50. Pimicotinib
    These findings expand our understanding of the gene regulatory network of ESC pluripotency.Pseudomonas aeruginosa isolates from chronic lung infections often overproduce alginate, giving rise to the mucoid phenotype. Isolation of mucoid strains from chronic lung infections correlates with a poor patient outcome. The most common mutation that causes the mucoid phenotype is called mucA22 and results in a truncated for

Leave a Reply

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