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.

308,449 thoughts on “Department Store Industry”

  1. https://www.akumaucoklat.com/
    Waktu ini pecinta perjudian online tentu benar-benar banyak. Di dalam masalah ini Anda mempunyai peluang buat temukan kesempatan keuntungan makin besar dikarenakan waktu ini lebih banyak permainan permainan bagus yang dapat dicapai dengan gampang dalam website web agen judi dapat dipercaya. Kelapangan akses tentunya yang membikin banyak bettor pengin melaksanakan bet atau main judi buat perjudian lewat cara online sekaran

  2. https://www.selleckchem.com/products/brd0539.html
    The co-occurrence of mPFC-STN theta phase synchronization and STN theta-gamma PAC reflects a neural substrate for fronto-subthalamic communication during conflict processing. More broadly, it may be a general mechanism for neuronal interactions in the cortico-basal ganglia circuits via a combination of long-range, within-frequency phase synchronization and local cross-frequency PAC.

  3. Meme Stuffed Animal
    Sacabambaspis initially grew to become known to the world through a viral tweet from August 2022 proven beneath, which pokes enjoyable at a poorly executed model of the Sacabambaspis from the Finnish Museum of Natural History. The Sacabambaspis is depicted with bulging eyes,

  4. https://hoki311j.com/
    games slots online 3d miliki banyak pengagum. salah satunya variasi permainan slots online itu betul-betul punya beberapa kelebihan yang dapat dirasa oleh beberapa petaruhnya dengan cara langsung. dengan bermacam keuntungan yang ada itu, betaruh dapat mendapat keuntungan dengan lumayan mudah. di bawah ini yaitu banyak keuntungan main permainan slots online 3d.

    jekpot yang besar

    jekpot yang benar-bena

  5. Meme Plush
    For a handwritten card, please add info notes part at checkout. This Snuggy Buddy presents all of the comfort of our award winning 6-12 Month dimension, however with further room for your growing child. Children can level to the temper emoji that matches the greatest way they are feeling while not having to “use their words”, a ability that will elude them when triggered. Sing the SnuggleBuddies Feelings Song (bit.ly/GENMSBSong) and ask kids t

  8. daratumumab inhibitor
    Presidential addresses from 1961 to 2018 (thanks to ASSH Chase Library historical archives) were evaluated. The general portion of ASSH presidents by specialty ended up being 67% orthopaedic, 25% plastic cosmetic surgery, and 8% basic surgery. The most frequent speech theme general ended up being “how to be good hand surgeon” (31%).

  9. https://dutrai.com/members/mibetttoday.32190/#about
    Trong thế giới hiện đại, sòng bạc không chỉ là một nơi để giải trí mà còn là một biểu tượng của sự xa hoa và cơ hội. Từ những bữa tối sang trọng, những ánh đèn lấp lánh cho đến những âm thanh vui tai của máy đánh bạc, mọi thứ tại đây đều được thiết kế để thu hút và kích thích người chơi. trình khám phá sòng bạc không chỉ là về những trò chơi ganh đua mà còn là một hành trình

  10. https://poe-jacobson.mdwrite.net/zimorodok-pogruzhenie-v-mir-turetskogo-seriala-onlain-1733715519
    Skills enbek. kz

    Webkassa ориентируется на индивидуальные потребности клиента, только также представляют оперативную техническую поддержку. В связи с единственным, рекомендуем Webkassa ьны фискализации розничной торговли. При этом ними гражданами и

  11. local glaziers
    The 5 The Majority Of Typical Glass Repair Service Issues and Exactly How to Fix Them

    When it involves glass repair, lots of home owners find themselves taking care of a multitude of concerns. From split windows to foggy glass, these issues can be both frustrating and unsightly. But anxiety not! Our company has actually obtained you covered. With our proficiency and excellent solution, we can address the 5 most usu

  12. JAM TANGAN, JAM, JAM MURAH MERIAH
    Laundry PGSAFTY yakni usaha yang bergerak di bidang jasa cuci busana atau pun perlengkapan lain nya , dengan memperhatikan jasa maksimum kepada setiap pengguna pelayanan kami , sambil meringankan para konsumen jasa kami agar dapat memperhatikan kualitas benda konsisten bagus

    Laundry PGSAFTY memegang visi misi yang di antaranya :

    VISI :

    Menjadi industri Jasa Laundry ahli

  13. bioethanol fireplace wall
    An In Wall Ethanol Fireplace Adds Warmth and Ambiance

    An in wall ethanol fireplace adds warmth and environment to any room. They utilize bio-ethanol fuel and produce no smoke, making them safe to operate in homes and workplaces. They also provide additional heat and are simple to set up.

    Bef

  14. best bunk beds for adults
    Shoppers Looking For the Best Full Size Bunk Beds

    When shopping for the best bunk beds for full-size, buyers must consider several factors. Height, capacity for weight, design, and color are all important elements.

    The best full size bunk beds come with a twin-over-twin config

  15. https://kinogo.host/40233-zimorodok.html

    Зимородок — это новый турецкий сериал, который уже успел завоевать сердца зрителей по всему миру. В этом увлекательном проекте переплетаются захватывающая драма и романтика, которые делают сюжет по-настоящему интересным. Если вы ищете, где взять уникальные эмоции и погрузиться в мир турецкой культуры, то зимородок — идеальный выбор для вас.

    <br

  17. Clovis yorkshire terrier kaufen​
    Buy Bruno Mini Yorkshire Terrier

    The Yorkshire Terrier has a huge personality for the size of a dog. These dogs are intelligent and loyal. They also love to have fun. They are ideal for those with limited space.

    When choosing a teacup Yorkie puppy, you should ensure that you choose an accredited breeder. Ask th

  18. dnarepair signals inhibitor
    The entranceway then sealed and opened up again to reveal either the toy, or a clear room. In test 1, 18-month-olds’s students dilated in response to the unexpected bare outcome more than towards the anticipated empty outcome, developing the paradigm as the right way of measuring infraction of object hope. Utilizing the same p

  19. visit the next page
    Fascia Board Repair Near Me

    Fascia boards give a polished appearance to the roof and shield it from weather elements. It is important to repair them as soon as they become damaged or rotting to prevent further damage.

    Roofers and contractors who have experience in fascia repair or soffit rep

  20. 蝴蝶面具

    小說 — 蝴蝶面具

    漫畫 – 三角形書立 – 三角形书立

    傑夫利的正式受封，是在改成我的執事從此的一個羣星年。我本道那一天我深遠都決不會忘記，站在高臺上述的兩咱家，一個去着赤誠的騎士，一番假充是白璧無瑕的娃娃。她們都說我一仍舊貫個兒女，我的爸爸，吉爾伯特，還有傑夫利。固他們都已深明大義我就長年，卻已經把我當個小人兒吩咐。

    我收看他跪在我前面，用巴神明一般的觀點看着我。當我把劍放到他肩胛上時，我奉爲不禁想覽如此刻我一劍刺進他的聲門，此受封式將會改爲一出爭的笑劇。但最後我兀自忍了下來，我還想要把這打連接下來。

    愛斯蘭德王室分子的騎兵的使命廣而雜，又每相通都條件貫通。騎士所勇挑重擔的職掌不止而是庇護主

  21. báo giá cửa chống cháy ei60
    Cuối cùng công ty sẽ thực hiện kiểm tra cửa ngõ trước khi bàn trả đến khách hàng sản phẩm, lau chùi lau dọn và kiểm nghiệm thành phầm, sau đó bàn trả tới khách nhằm đánh giá, giao dịch. Là vướng mắc mà nhiều nhân viên mong muốn biết, nào hãy cùng 3CElectric tham khảo các tin tức bên dưới đây. Để có cái trông chi tiết, ví dụ rộng về thành phầm, nào hãy cùng mò hiểu về quánh đi

  22. property valuation glen waverley
    If you might be thinking about selling your own home, or property, the fundamental question you’ve got might be “what would it be worth?” There are different ways of figuring this out, whether all on your own, or by using others. There may also be various things you can do to enhance the need for your house, if you’re looking to do so.

    got take into consideration when v

  23. https://98win.gratis

    Show, don’t tell. Print copies of other nutritional foods you realize. Don’t just tell a dealer that you were given a better price quote online. Imply to them. Don’t just say a person need to thought your own was sufficiently well to qualify for a rate plan. Show them.

    <br

  24. 4 seater leather recliner sofa
    A Four Seater Recliner Sofa Is the Centerpiece of Your Living Room

    A well-designed sofa is the mainstay of any living space. There are a variety of options depending on your preference for modern or traditional designs. Many of the best couches come with a recline feature that allows you to relax in comfort.
    <

  25. Việc kiểm tra này nhằm mục tiêu đảm bảo cửa hoạt động êm ả nhất, ko có khe hở và cánh cửa ngõ vẫn còn vẹn nguyên. Khách hàng yên tâm lúc đến lựa chọn sản phẩm do Đồng Tâm sản xuất, đáp ứng đáng tin tưởng chất lượng. Đồng Tâm có tương đối nhiều Trụ sở là những showroom mở rộng lớn ở mọi TP. Hồ Chí Minh. Để thống nhất giữa các showroom với nhau, công ty chúng tôi thông tin đến khách hàng sản phẩm đúng số chi phí niêm yết trên website.

    Sử dụng cửa ngõ thép kh

  26. pop over here
    CS2 Case Battles

    A CS2 Case Battle is a game mode that lets players play their favorite games with a twist. It is a contest in which players bet on their cases, and the value of the items they remove determines the winner.

    This feature is only accessible on third-party websites and is popular among CS2 fans who are

  27. 98win

    Many of them devices have tweezer discs in their heads which rotate picking up the hair in the process and plucking them from the source. Many are contoured in such a way as to glide easily over each of the parts of no less than.

    In Canada, exports are “zero-rated” sales fo

  28. cửa thép chống cháy 60 phút
    Đây là cách phân chủng loại phổ biến đổi nhất đối với các thành phầm cửa kháng cháy chung chung. Được kiến thiết nhằm thỏa mãn nhu cầu những yêu cầu cao cấp vào xây dựng dựng, cửa thép phòng cháy EI 60 phút một cánh thường được dùng vào những tòa Nhà CửA cao tầng, bệnh viện, khách hàng sạn và trung tâm thương mại. Sự phối kết hợp thân tính t

  29. sunwin
    If realize there are only that many will appear 8 times before all numbers have fallen out about once, then, by following all previous numbers that will cause that event to occur, can easily more accurately choose which numbers to bet on, thereby lowering the probability to below 1/35 of hitting that number. Since Roulette pays you 35 times first decompose . bet in addition this original bet, this can offer you an expected return that is p

  30. https://hestongasengineers.co.uk/index.html
    Power Effectiveness and Convenience: Why Geothermal Heating And Cooling is the Method to Go

    At Power Performance and Convenience, we believe that everybody is entitled to a comfortable and energy-efficient home. We recognize the relevance of discovering solutions that not only provide comfort but additionally lower power intake and reduced utility bills. That’s why we are pro

  31. Comprar Carta de Condução da Categoria B1
    Buy Category B1 Driving License

    Category B1 driving licences grant the holder the ability to operate vehicles and trailers with a maximum permissible weight of 3,500kg. This is a very popular licence for those seeking affordable and environmentally friendly transportation solutions.

    <b

  32. hitclub
    Also, free casino play can be used to get people to compete on your variety of prizes in some instances. There are several areas where people who play free casino games can win prizes in various tournaments and competitions. These prizes are the ones that aren’t funded by people and often will instead by supported by sponsors who work market their wares on a casino’s web portal. The

  33. check out this site
    The Leading 5 Names of Fridge Brands

    Whether you’re shopping for a fridge with energy effectiveness, sustainable functions or a clever design, it pays to weigh the credibility of fridge brands against your particular needs and preferences.

    GE, for instance, is understood for its dependability and u

  34. Learn More from Alex Clug
    In a rapidly evolving global landscape, the convergence of technology and entrepreneurship is creating unprecedented opportunities for innovation. At the forefront of this movement is a multilingual entrepreneur whose diverse journey spans various sectors, including medical robotics, telecommunications, and mini

  35. mt receptor signal
    The amino acid contents associated with examples all increased constantly under the various heat conditions. Furthermore, greater conditions were related to higher perceptual power of bitterness and contents of amino acids including sour, sweet, umami, and astringent type amino acids along with the total amino acid content during fermentation. Moreover, the full total BAA

  36. hop over to this web-site
    Gas Safety Certificates For Landlords

    Getting regular gas safety checks is a crucial part of keeping your home safe. This assists to lower the danger of carbon monoxide poisoning, which can be lethal.

    The Union Hill community is also worried that

  38. https://glazier-earlscourt.co.uk
    Glass Repair work vs. Substitute: Whats the Best Choice for Your Broken Windows?

    At [Your Firm Call], we comprehend the disappointment and concern that includes having harmed home windows. Whether it’s a small fracture or a smashed pane, it is necessary to attend to the issue promptly to make certain the safety and safety and security of your home or company. However when confronted with the decis

  39. real leather couch
    Where to Find a Mid Century Leather Sofa

    If you’re looking for sleek designs or big bases, the perfect sofa can transform your living room. Pineda took into consideration the price ranges of each sofa, the upholstery options, the customizable capabilities, shipping costs, and the policies for returning items when she

  40. 17Track
    Transport with among America’s largest carriers? Request freight quotes, monitor shipments, and ensure on-time delivery with advanced freight management solutions equipped with YRC tracking, YRC quotes, and other YRC freight data.

    About YRC Freight

    Yellow Freight is a popular abbreviation for YRC, one of the leading carriers partnered wit

  41. Rhosin
    -solubility. Moreover, the SOF can be readily functionalized to incorporate the anti-cancer agent Doxorubicin and mitochondria targeting molecules through respective physical encapsulation and host-guest interactions.Adult tendon tissue demonstrates a limited regenerative capacity, and the natural repair process leaves fibrotic scar tissue with inferior mechanical properties. Surgical treatment is insufficient

  42. best quality bunk beds
    The Best Bunk Bed Ideas

    Bunk beds for kids are a great solution if space is limited. These rooms are full of storage space and can be arranged in a variety of ways.

    Under bunk beds, you can maximize vertical space by putting in shelves. This fea

  45. syk inhibitors
    We study the tearing characteristics of the porcine thoracic aorta using a peeling test and then we estimate the peeling energy per unit area into the ascending while the descending portions. The stretch as well as the peel power per unit width encountered by the peel

  46. alexistogel
    If you’re wanting for a legit on the web casino that offers slot equipment, you’ve got arrive to the ideal area. With SLOT88 as your dwelling foundation, you will come across some of the most fascinating and trustworthy game titles all around. The internet site has been in procedure considering the fact that the yr 2018 and accepts both of those uang asli and other sorts of payment. To participate in, all you have to have is an web link, a c

  47. best robot vacuum cleaner
    Robot Vacuums and Mop Robots Are a Common Household Appliance Now That They’re Available at a Range of Prices

    Robot vacuums are a standard household appliance, and are accessible at a variety of costs. With advances in smart technology, many can be able to map rooms and avoid obstacles, and can be controlled by smartphones or voice assistants.

    Some eve

  48. hitclub
    Online casino gambling totally secure and sound. Money is stored in an service. Some sites are free, others you have to put down a first deposit.

    This ever trusted online casino is among the original casino a web. Their doors opened in 2007 for players that want different involving thrill and excitement in gambling. You can never go wrong with this casino curre

  49. ethanol wall fireplace
    Include a Media Wall Bioethanol Fireplace

    A media wall with a bioethanol fireplace is an exceptional way to add a focal point to your home. They are simple to set up and do not require a flue or chimney.

    Unlike an electric fire, they produce genuine flames and radi

  50. Allergy Tests
    Browsing through the healthcare program is certainly a source of frustration intended for many. Long holds back, confusing processes, plus hidden fees can change what should get a straightforward expertise into a stress filled ordeal. Fortunately, the landscape of healthcare is evolving, making way for effortless solutions that prioritize the needs of the consumer. Imagine a world where getting medical attention is definitel

Leave a Reply

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