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.
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讓我們從病人自願安排（IVA）。這將是正式合約一個付清現金你借來的在更多之間的可管理方式你和你的債權人，允許。有一個IVA，你做使用破產那是許可生產考慮的還款計劃您的收入和成本。通常持久三到五多年，這種安排可以提供通過保護您免受適當的行動和債權人騷擾來滿意。什麼時候還款期已完成，剩下的任何不安全的債務通常是寬恕，宣稱提供你開始那是新鮮的。
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在某些人中有點兒陷阱的地方那是到處都是財務，很多人結束束縛在債務重組的複雜性。管理信貸的力量那是不同的貸款可能是令人生畏的，經常使人們經歷迷失和焦慮。幸運的是，“一張卡重點”策略提供了簡單和路徑這當然是有效恢復控制財政。在本文中，我們將探索什麼這個過程需要以及如何入伍的幫助財務專家可以提升您恢復債務的旅程。
所以，正是什麼“一張紙牌重點”策略？此方法全部集中你自己的時間和努力償還確定的一次債務重組 – 通常是高利益充電卡以其核心。通過磨練使用此單身的卡可以簡化您的還款過程並創建一個明顯的前進的路。看著這種穩定性收縮可以提供一種動力和成就，使它更容易管理其他債務在路上。
與之合作財務專家可以顯著擴大成功為了“一張紙牌重點”策略。 。如果你應該感到不知所措問題這當然是當前的指導或許變革性。他們要去評價你的錢，建議合併選項，這確實有幫助您建立付款這當然是量身定
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在當今快節奏的世界中這當然是貨幣都是也隨時可用你的自溺水債務。是否是由於意外的醫療費用，失業，或只是只是費用這當然是很多，許多人戰鬥保持他們的思想在水上。幸運的是，你可以找到可用的生命線這將有所幫助你導航你的道路回到穩定這當然是經濟的。其中兩個生命線包括個人自願安排（IVA），和信用卡債務減免計劃（DRP） – 有效技術獲得控制您的財務困境。
讓我們從個人自願安排（IVA）。iva是真的官員兩者之間的協議你和你的債權人這樣可以一個支付百分比從你的無抵押的未償債務在設定的時間範圍內 – 通常五到六年。這種安排可以極大地減少你的還款是每月做更好控制你的財政。一旦你結束付款期，任何持有債務通常是以書面形式，為您提供開始那是新鮮的。這個系統不僅提供救濟這是即時的允許您恢復您的貨幣基礎沒有任何破產的污名。
話雖如此，信用卡債務減免計劃（DRP
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面臨貨幣挑戰可以很重要經驗那是令人生畏的人通常會讓人們對自己的未來感到迷失和焦慮。但，這是必不可少的記住有有效的策略同意允許你恢復控制您的財務困境。在這篇具體文章中，我們將探索三個關鍵選擇：個人自願計劃（IVA），債務減免計劃（DRP）和破產。了解這些途徑可以授權你去做出明智的決定在製作時議程這可以是可行的經濟復甦。
特定的自願安排（IVA）提供一種補救措施那是有組織的管理債務。iva只是官員協定一個償還你欠的錢以一種方式符合雙方之間的財務困境你和你的債權人允許。通常持久少於六個多年，IVA涉及付款是每月開啟你是什麼能夠管理。這個安排有效從積極的債權人行動中整個付款期因為它保護你。一旦你成功地完成IVA，任何債務那是不保證通常會註銷，為您提供機會開始新鮮沒有以前的責任負擔。
另一種選擇考慮到是債務減免計劃（DRP）。此方法目標直接談判和
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一天的年齡在哪裡識字那是財務更重要比過去，許多人結果應付債務重組。 財務公司邊間好 。輸入那是紙牌的變革性。”這個過程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的貨幣未來。在本文中，我們要去探索如何與融資專業人士合作可以幫助您實施這個策略毫不費力。
所以，到底是什麼“一張卡片”真的建議嗎？這個計劃中心消除一個債務在任何給定時間， 尤其金融卡或攜帶的貸款高利率本質上。通過集中精力一段時間和努力償還這個債務這當然是單身的，有可能減少你的每月財務負擔，逐漸提升你的信用資料。這個過程那是目標艱鉅的任務債務還款更可行少得多壓倒。
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一天的年齡在哪裡挑戰那是貨幣越來越普遍，很多人結束債務重組不堪重負。持續還款的壓力，興趣水平，不可預見的費用可以感覺就像負擔那是不可逾越。儘管如此，有希望。兩種策略 -這當然是有效的自願安排（IVA）和信用卡債務解決方案計劃（DRP） – 為可行的途徑提供對於人們試圖恢復控制他們的資金。
讓我們集中在個人自願安排（IVA）。這項具有法律約束力的協議供應一個有組織的方法人們償還他們的債務一個小組持續時間，通常是五到六年。通過與債權人談判，你會提出還款計劃遇到你的財務。關於iva基於它是可能性債務和解;一旦完成安排，將刪除任何剩餘的債務。這意味著你會的開始開始這當然是通過壓倒性債務重組的束縛嶄露頭角。
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在全球意外支出和財務不確定性可以很快導致應變這當然是貨幣很多人結束抓斗利用債務重組的挑戰。感覺被困住了每月賬單和高度興趣可能令人生畏，但是很重要考慮到有重新控制控制的有效途徑。兩種突出的選擇 – 特定的自願計劃（IVA）和債務談判計劃（DRP） – 可以工作為領先的燈你自己康復之旅這當然是經濟的。
讓我們查看患者自願安排（IVA）。本協議這當然是正式的一個有組織的手段面臨不可控制的債務重組的個人利用他們的債權人。在IVA中，您提出了一個反映的付款計劃你的位置這當然是經濟持續五到六年。通過製作定期付款基於你什麼處於負擔得起，你不僅降低你的每月負擔那是財務還鋪路道路為了可能的債務重組寬恕到最後為了學期。這意味著成功完成IVA之後，你會的享受起點那是新鮮的債務重組揮之不去的脂肪使您退縮。
話雖如此，債務和解計劃（DRP）報價更多反應那是那些被債務
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