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.

417,193 thoughts on “Department Store Industry”

  1. online adhd testing
    ADHD Adult Test – Important Steps in Diagnosing Adult ADHD

    In an ADHD screening the doctor will ask you about your personal and family history, work environment and school performance. They will also request your medical history as well as conduct an examination of your body.

    <b

  2. csgo case battles
    CS:GO Case Battles

    The csgo case battles feature is a new and exciting method of playing the game. It lets players challenge each one another in a chance game, with the winner getting all of the items unboxed. The winnings are then transferred to the Steam account of the player or traded.

    <b

  3. simply click the following site
    Buy Arvin Biewer Yorkshire Terrier Mini

    Biewer Terriers have the body of a large dog, but are intelligent, affectionate and loyal to their family. They can be strong-willed and can be a bit yappy, and require gentle teaching who is boss.

    They are genetically related to Yorkshire Terriers. In fact they were among the first breeds to be recognized by a

  4. https://groveparkgasengineers.co.uk
    Geothermal HVAC: The Future of Lasting Cooling And Heating

    At Geothermal HVAC, we strongly believe in producing a lasting future via ingenious home heating and cooling services. Our business concentrates on geothermal HVAC systems, which harness the power of the earth’s natural warmth to provide reliable and environmentally friendly heating and cooling for property and industrial buildings.

  5. 借錢優惠
    在當今的世界中，快節奏的處理資金經常會感到不知所措。有許多貸款，金融卡債務，還有其他承諾那是金融的很多人在借錢的循環留下來上空。然而，概念“卡片不。1清晰的”希望那些尋找恢復控制他們的財務困境。此信息del在偉大的關於利用公司那是財務債務合併和正是如何你可以毫不費力地處理您的貸款和借貸。

    理解“卡1號清除”是必不可少的對於那些試圖簡化其債務重組。基本上，這個術語與清理的做法一個人卡或貸款增強一個人的信用健康這當然是一般的。通過強調一張卡最重要的，借款人可以減輕其債務重組負擔，並且改善他們的信用記錄，鋪路道路為了更好的可能性這可以是貨幣未來。

    金融組織從事工作那是至關重要的這個過程。它們具有量身定制的解決方案，可滿足需求那是個人協助客戶將債務簡化為可管

  7. goethe certificate
    Why Buy a B1 Certificate?

    A B1 certificate is a crucial element to gaining access to Germany. It is an essential element in the process of applying for a Settlement Permit or Naturalization. It facilitates communication in everyday life.

    At a level of B1 in your language is a good starting po

  8. 月利息計算機
    在一個時代在哪裡識字那是財務更重要比以前，很多人結束應付債務重組。壓力多貸款和信用卡會感到窒息，使許多人想知道如何恢復控制他們的財務狀況。輸入那是紙牌的變革性。”此方法那是創新只會簡化債務重組管理，但也使借款人能力簡單收取費用其中貨幣未來。在本文中，我們要去探索如何與融資專業人士合作會讓你實施這個策略毫不費力。

    所以，那是什麼“一張卡片”真的建議嗎？這個計劃中心消除一個債務任何時候

  9. how to get a replacement car key fob
    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 utilize different frequencies of RF for greater security. Some car fobs fold side-view mirrors to guard against damage from heavy shoppers or cars.

    <

  10. ratu311
    Website judi online dapat dipercaya yakni soal yang Anda perlukan, kan? Kami bisa pastikan buat tiap-tiap pelaku judi situs paling dipercaya merupakan daerah yang aman buat main. Kecuali aman, tempat ini terang jadi perihal yang bakal berikan keuntungan buat Anda. Ada beberapa keuntungan yang dapat Anda temui waktu mendapatkan website yang aman jadi tempat untuk bermain. Namun, soal ini jarang-jarang diakui oleh kebanyakan warga.

    <

  11. co sleeper bedside cot
    What Is a Bedside Crib?

    A bedside crib is an infant cot in the form of a bassinet that attaches to the side or headboard of your bed. It lets you keep your baby close to you so that they can be fed and soothed without hassle. These are great for new mothers recovering from c section.

    However, it’s important to remember NHS guidance and Lullaby Trust recommend

  12. relevant website
    Samsung Dual Fuel Range Cookers

    Samsung’s dual fuel range cooker is the ideal choice if you want gas cooktops that come with an electric oven. The cooktop’s burners vary from fast and powerful boiling to precise simmers and a ceramic divider allows you to roast or bake separately.

    Rangemaster

    A dua

  13. large bedside crib
    The Best Bedside Cots

    A bedside crib is a bassinet style crib that is attached directly to your bed. This allows your baby to sleep safely close to you. This is an ideal option when you want your infant to be near for feedings that aren’t a hassle in the early stages.

    The HALO BassiNest Esse

  14. immobiliser ghost
    How to Do a Ghost Immobiliser Install

    The Ghost immobiliser is an advanced anti-theft system. It operates silently, without radio frequencies and makes use of CAN data networks in order to protect your vehicle from being stolen.

    It is crucial to comprehend the operation of the device prior to embar

  15. case battles
    CSGO Case Battles

    CSGO Case Battles are an exciting way to open cases online. They add excitement and competition to the process, which makes it more enjoyable and fun. They also provide more rewards than the regular in-game cases opening.

    Case battles are played out when players open and purchase cases sim

  16. Narożniki
    Narożniki to jeden z najważniejszych elementów wyposażenia każdego wnętrza, który znacząco wpływa na jego atmosferę. Oprócz funkcji praktycznych, takich jak zapewnienie miejsca do siedzenia, narożniki pełnią również rolę dekoracyjną, nadając pomieszczeniu charakter i styl. W dzisiejszych czasach, kiedy zwracamy coraz większą uwagę na to, jak nasz dom wygląda, narożniki stają się kluczowym elementem w aranżacji wn

  17. travel bedside crib
    Bedside Crib With Wheels

    A bedside crib is an infant cot in the form of a bassinet which can be placed in your bed for feedings that are easy at night. They are also great for mothers who just had a c section.

    MFM home testers loved how simple and contemporary t

  18. mox卡數即時清
    在一個時代在哪裡識字那是財務更重要比以前，許多人找到自己應付債務重組。壓力多貸款和信用卡會感到窒息，使許多人想知道如何恢復控制他們的財務狀況。輸入趨勢是紙牌的變革性。”這項技術那是創新只會簡化債務重組管理，但也使借款人能力簡單收取費用他們的貨幣未來。在這篇具體文章中，我們將探索如何與融資專業人士合作可以幫助您實施這個計劃毫不費力。

    所以，那是什麼“一張卡片”真的建議嗎？這個計劃專注於消除一個債務隨時， 尤其充電卡或攜帶的貸款頂部利率本質上。通過集中精力一段時間和努力償還這個債務那是單身的，你能夠減少你的每月財務負擔，逐漸舉起你的信用資料。這項技術那是目標恐嚇任務債務還款更可行從不壓倒。

    貸款專家扮演角色這是朝著經濟清晰的旅程的關鍵。這些專業人士深入理解融資格局可以提供對齊的量身定制建議和你一起獨特的情況。如果是經歷了捕獲在下面幾個債務的重量，搜尋這

  19. Floxuridine ic50
    Food poisoning associated with microbial pathogens causes millions of foodborne disease cases in the Kingdom of Saudi Arabia. Awareness about foodborne pathogens may play a positive role in the reduction of foodborne illnesses. The present cross-sectional study investigates awareness about five major microbial pathogens (Salmonella, Campylobacter, Staphylococcus, Listeria, and Escherichia coli) among university

  21. https://belanjamantap.com/
    Banyak betaruh itu selalu perlu link judi online preferensi untuk menjaga – menjaga sewaktu domain inti tidak dapat dijangkau atau terkena blokir. Perbuatan atau usaha penjagaan ini terlalu dibutuhkan oleh beberapa betaruh biar luput dari yang bernama perkara. Karena itu, kenali terus trik – teknik ringan dalam mendapat link judi online alternative.

    Ada cara-cara atau pemeca

  23. white leather 4 seater sofa
    A 4 Seat Leather Sofa Is a Modern Staple

    For a modern and stylish piece take a look at this sofa from the Kendall collection. It’s a modular sectional, and has lots of customization options for upholstery and colors that contrast.

    Pottery Barn’s Turner sofa is a bit on the expensive side however its solid wood frame and

  24. attention deficit disorder online test
    ADHD Testing For Adults

    Professionals who treat adult ADHD offer many adults the opportunity to are seeking an ADHD assessment. These professionals could be licensed psychologists, therapists, or coaches.

    A trained professional can give concrete results, in contrast to some online ADHD rat

  25. online test adhd
    Adult Testing for ADHD

    A specialist will want to know about your childhood and your history of symptoms. This is because current diagnostic criteria emphasize that ADHD must be present from childhood.

    Your specialist may want to use a few different adult ADHD self-assessment tools during your evaluation. These are

  26. selleck chemicals
    In 2012, the WHO launched its Global Surveillance and Monitoring System (GSMS) for substandard and falsified medicines, with the aim of improving the quality of reporting and using the data to inform post-market surveillance and build regulatory capacity. However, from a regulatory governance perspective, its effectiveness depends on the willingness and ability of actors ‘on the ground’ to identify, report and

  27. b1 zertifikat kaufen ohne prüfung
    Buy a B2 Certificate to Show Your Level of Language Proficiency

    Buy B2 certificate is a higher-intermediate level qualification it demonstrates that the person has language proficiency in everyday spoken and written English at the level B2 of the Common European Framework of Reference for Languages (CEFR). The exam evalu

  28. buy a grey parrot
    African Grey Parrot Adoption

    African grey parrot adoption is an amazing experience. Bird rescue organizations are dedicated to finding a home for every parrot that is adopted.

    Greys are intelligent and have the same mental capacity as a three-year-old child. They can perform tasks

  29. gas safety engineer buckingham
    Why It is necessary to Get in Touch With a Boiler Engineer

    If your boiler is broken down, it’s important to get in touch with a heating engineer as quickly as possible. This will ensure that the problem is dealt with immediately and effectively.

    Getting gas safety inspection buckingham is important for house owners and landlords alike. A

  30. leather corner sofa 4 seater
    A 4 Seater Leather Chesterfield Sofa Will Never Go Out of Style

    Like a well-made suit or pair of shoes, every first class Chesterfield starts with a solid foundation. A robust hardwood kiln-dried frame is then glued and screwed to ensure longevity and provides the base for all subsequent craftsmanship.

  31. key fob car replacement
    Cheap Car Key Fob Replacement

    If your device isn’t one of the fanciest “smart” models that work with the latest vehicle security systems replacing it shouldn’t be too costly. Comparison shopping is the key.

    The majority of dealerships say they can’t offer cheaper fobs

  33. vilabet4d slot
    player bet tinggi mampu menemukan permainan bet tinggi di kasino online serta darat. penghobi yang lebih gemar taruhan sedikit bakal menjumpai lebih banyak permainan yang ada selaku online, separuh di antaranya mengharuskan taruhan paling kurang $1 ataupun kurang.

    pemain, idealnya, juga dapat menikmati varian roulette online, serupa lighning roulette dan versi european dan juga american roulette. permainan blackjack sama dea

  34. This Internet page
    Dual Fuel Range Cooker Reviews

    Upgrade your kitchen with a dual-fuel range cooker with precise temperature control in the cooktop, as well as precise heating inside the oven. These models are designed for homeowners who value the highest level of precision in cooking and baking.

    Before choosing a new range, consider your cooking preferenc

  35. fridges brands
    Leading Fridge Freezer Brands

    When buying a fridge freezer, take a look at customer support options and warranty terms to figure out how easy it will be to get repairs. Try to find brands that provide 24/7 client assistance and use a series of budget friendly guarantee choices.

    LG is understood for its innovative features and wise fridges with

  36. Tallula indigo park mollie macaw
    Glaucous Macaw

    The glaucous Macaw is one of the rarest birds on earth. It is Critically Endangered, and may be extinct in the wild.

    Various aviculturalists have reported sightings of this bird, but the most recent was in 1992. The reported sighting was in the southwestern region of Paraguay, near the

  37. best bunk bed design
    How to Choose the Best Convertible Bunk Beds

    Bunk beds are an excellent way for children to make space while adding fun to their rooms. How do you choose the best one?

    Find a bunk bed that splits into two beds when your children outgrow the bunk arrangement. The best choices will be durable, wit

  38. https://sanfelipe.com.mx/
    trò chơi bài luôn là lựa chọn yêu thích của nhiều người khi muốn thư giãn. Với sự phát triển của internet, chơi bài trực tuyến đã trở thành một phần không thể thiếu của các người chơi. Không chỉ là một trò chơi, game bài còn mang đến cho người chơi tư duy và thư giãn cực kỳ hiệu quả.

    Các trò chơi bài như xì tố luôn là game bài thịnh hành trong cộng đồng. Với lối chơi dễ tiếp cận, các trò chơ

  40. leather couches for sale
    Where to Find a Mid Century Leather Sofa

    The right sofa can transform your living room, whether you prefer modern lines or bold bases. To choose her options, Pineda considered price ranges the upholstery options, customizable options as well as return policies and shipping costs.

    <b

  41. https://sanfelipe.com.mx/
    Trò chơi bài luôn là món ăn tinh thần của nhiều người khi muốn thư giãn. Với sự phát triển của công nghệ trực tuyến, chơi bài trực tuyến đã trở thành một phần không thể thiếu của các game thủ. Không chỉ đơn giản là trò chơi, game bài còn rèn luyện cho người chơi tư duy và thư giãn cực kỳ hiệu quả.

    Các game bài như xì tố luôn là trò chơi được yêu thích trong cộng đồng. Với cách chơi dễ hiểu,

  43. online adhd test
    ADHD Test Adults Can Help You Recognize Your Symptoms

    Self-screening tools and ADHD rating scales are not the same as an official diagnosis by an expert. They can help you determine symptoms.

    A specialist will review your medical history, including your childhood behavior. They will also ask

  44. https://sanfelipe.com.mx/
    Game bài luôn là món ăn tinh thần của nhiều người khi muốn giải trí. Với sự phát triển của internet, trò chơi bài trực tuyến đã trở thành một phần không thể thiếu của các người chơi. Không chỉ đơn giản là trò chơi, game bài còn rèn luyện cho người chơi chiến lược và thư giãn cực kỳ hiệu quả.

    Các tựa game bài như xì tố luôn là game bài thịnh hành trong cộng đồng. Với cách chơi dễ hiểu, các tr

  45. Comprar a carta de condução do IMT
    How to Buy the IMT Driving License

    The Institute of Mobility and Transport recommends that you exchange your license prior to it being lost or stolen if moving to Portugal from an EU member state. Here’s how to do it.

    A medical test is required to begin the process. You can order it online to save time.

  47. ghost immobiliser car
    How a Ghost Immobiliser Can Boost Your Car’s Security

    Due to the increase in key replicating, relay thefts and other security threats, motorists are seeking sophisticated security measures. However, determined thieves will always find ways to bypass them.

    The ghost immobiliser can be a great way to increase the security of your vehicle. It is und

  49. bioethanol wall fire
    Bioethanol Media Wall

    Media walls integrate entertainment and storage into a smooth, elegant unit. They likewise include a cosy, inviting feel to any home. They can even improve your home’s resale value.

    Bioethanol fires are an excellent option for a media wall, due to the fa

  50. visit the following internet page
    Soffit and Fascia Replacement Companies Near Me

    Soffits and the fascia shield against the elements and provide ventilation. They help keep moisture from accumulating beneath the roof’s eaves. They can stop pests from settling there.

    It is essential to have soffit and fascia repair o

Leave a Reply

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