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.

216,298 thoughts on “Department Store Industry

  1. gas engineer
    Optimizing Comfort and Performance: Exactly How Heating And Cooling Specialists Can Help

    At Making The Most Of Convenience and Efficiency, we recognize the value of producing a comfortable and reliable environment in your home or service. Our group of seasoned cooling and heating professionals is dedicated to providing first-class solution and solutions that will aid you achieve

  2. olx angola sofás novos
    Se você está em busca de grandes oportunidades em Angola, não pode deixar de conhecer as ofertas incríveis disponíveis no OLX. Esta plataforma de anúncios classificados tem se tornado um dos principais destinos para quem procura carros, casas, eletrodomésticos e muitos outros produtos. Especialmente em Luanda, a variedade de itens disponíveis é impressionante, tornando mais fácil encontrar exatamente o que vo

  3. leather sofa with chaise
    Vegan Leather Sofa

    Vegan leather sofas are constructed of a plant-based material. They’re more environmentally friendly than traditional animal hides, and they’re also more durable.

    VivaTerra offers a brown vegan leather sofa with kiln-dried wood and durable foam cushions. They’re also extremely affordable.

    <

  4. bio ethanol fireplace for media wall
    best wall mounted ethanol fireplace

    If you’re trying to find a contemporary, clean-burning fireplace option, think about a wall hung ethanol fire. These stunning pieces hold on the wall like a picture and produce lively flames and genuine heat.

    Ethanol fires are also simple to

  5. Asian onlyfans
    OnlyFans has get a vibrant program for creators to be able to showcase their skill and connect along with fans who talk about their interests. Through striking redheads in order to captivating cosplay fans, the variety associated with niches ensures a thing for all. Whether you’re keen on alternative appearance, cultural representation, or specialized genres, OnlyFans offers an exciting in addition to inclusive space regarding exploration.

  6. hitclub
    A quick search using the web revealed many Palace of risk Casino coupons for numerous bonus bargains. The casinos web site also has got an enormous associated with promotions listed on its site. It was almost too much to surroundings. There are new customer, monthly, overnight and VIP room promotions and bonuses so makes sure you perform some research and discover all of

  7. https://dvmagic-48169570.hubspotpagebuilder.com/en-ee/
    SEO writing is also known as SEO copywriting or search engine optimization writing. Trying to work in your head keyword as many times as possible may have worked once upon a time in the SEO world, but not anymore. It is important, though, to use your head keyword naturally throughout your content, especially within the first paragraph. It’s recommended that you include you

  8. budget robot vacuum
    How an Automatic Vacuum Cleaner Can Save You Time and Money

    Automated vacuum cleaners can take an enormous chunk of your cleaning list off. They can be a challenge to access spots like under beds and behind sofas where dust builds up.

    Smart vacuums map their surroundings whil

  9. ethanol wall fireplace
    Bioethanol Fire in Media Wall

    Supplying you or somebody you understand is skilled at measuring, drilling and screwing, you will have the ability to set up an IGNIS wall mounted ethanol fireplace. Simply make certain you use a non-combustible installing surface area and follow all producer guidelines carefully.

    <b

  10. thor311
    Kadang di waktu kita memainkan permainan taruhan di satu diantaranya opsi Broker judi online, kita mengenyam sejumlah kasus. Akan tetapi tak boleh risau karena betul-betul ada banyak metode yang dapat dijalankan untuk mengabari layanan konsumen serta mengharap kontribusi mereka. Dengan mengharap kontribusi mereka Karenanya setelah itu segalanya dapat terlayani dan dapat juga memperoleh sejumlah keuntungan. Masalah ini pula yang kedepan dapat menjadi sa

  11. hitclub
    For avid land casino goers, watching games via web cam technology is also a good method to situate themselves with the online gaming believed. Even with the video streaming, there will not be a denying the advantage that land casinos and internet casinos are still different. To get comfortable and also get at one point would the online concept before trying it out, avid casino fans can observe games firs

  12. http://www.repairmywindowsanddoors.co.uk
    Can You Replace French Door Glass?

    You can replace the glass pane on your French door. You’ll need to remove the broken pane and then employ a utility knife to cut the joints with paint and at the seams of the paint.

    Our experts have years of experience working with double-paned and single-pa

  13. replacement key fobs for cars
    Car Key Fob Case Replacement

    In the past in the past, if you lost your car key you could easily replace it by visiting your local locksmith or hardware store. But with modern cars relying on high-tech key fobs that can control things like power windows, changing one is no longer a matter of pocket change.

  14. hitclub
    The first difference is a the very beginning of your games: be aware that unquestionably the antes are no longer and in their place there come the blinds. The blinds are forced bets that have to be placed by the first person following the dealer (the small blind), and the individual after him (the big blind). The unused amount of the players at the table do not forced bets – they’ll however bet the blinds when their turn goes. The only

  15. cyclosporina inhibitor
    The observational research ended up being predicated on information from official government sources gathered because the inception of epidemic until 28 April 2020. DALYs for an ailment integrates many years of life-lost because of untimely mortality within the populace additionally the years lost because of disability of the infection. As well as DALYs, s

  16. ouedkniss nintendo switch
    Dans le paysage dynamique de l’Algérie, la recherche d’une voiture ou d’un bien immobilier peut souvent sembler une tâche intimidante. Heureusement, des plateformes comme Ouedkniss et Loozap facilitent ce processus en offrant des solutions simples et efficaces. Que vous soyez à la recherche d’une automobile pour vos trajets quotidiens ou d’un appartement pour vous établir, ces sites se présentent comme des alliés incontourn

  17. Large Sacabambaspis
    People find imaginative methods to interpret a canine’s expression or action, weaving narratives which are both humorous and clever. This creative spin showcases how limitless human creativeness can be. The tweet gained at least 1,000 likes earlier than the account was privatized (shown below).

    That day, Anyaboz updated the DeviantArt page noting that the p

  18. hoki311
    judi mesin slots online di dunia judi sekarang tentu saja telah tidak asing. sampai sejumlah besar golongan beberapa bettor lebih ingin untuk permainkan taruhan yang satu berikut diperbandingkan dengan permainan yang lainnya. sesaat akan mulai bermain taruhan, banyak bettor harus tergabung lebih dahulu dalam suatu situs terpilih yang bakal dipakai jadi tempatnya main. memutuskan berdasar referensi memanglah bisa jadi satu diantara trik simpel yang da

  19. isrib inhibitor
    The goal of this article would be to improve physicians’ understanding of this illness, therefore efficiently reducing the rates of missed diagnosis and recurrence. Few computer-delivered brief intervention (CDBI) studies have evaluated participant satisfaction with individual elements of the input, or whether participant satisfacti

  20. https://booklog.jp/users/abc8taxi/profile
    Trong thời đại công nghệ số hiện nay, cá cược trực tuyến đã dần trở thành một hình thức giải trí phổ biến không chỉ ở Việt Nam mà còn trên toàn thế giới. Với sự phát triển của internet và các nền tảng di động, người chơi giờ đây có thể dễ dàng truy cập vào các nhà cái, cược trên các môn thể thao yêu thích hoặc tham gia vào các trò chơi casino ngay tại nhà. Điều này không chỉ mang lại sự tiện lợi

  21. hitclub
    Most, rather than all online casinos will offer all of this major games of chance, such as; poker, craps, roulette, slots, and twenty-one. Therefore, on your initial visit to a casino surplus to totally review most of the different games that offer.

    Black jack, video poker, classic slots and any huge selection of other casino games may now be pl

  22. view site…
    4 Seater White Leather Sofa

    The white sofa is a classic choice that will never lose style. It is a great choice for formal or casual rooms and adds brightness to the room. It is also a perfect colour match to any scheme.

    This piece has a pretty reasonable price, especially if you consider that it’s made of full-grain genuine leather. The color will darken over time, so i

  23. best redhead onlyfans
    OnlyFans has get a vibrant system for creators to be able to showcase their talent and connect using fans who share their interests. From striking redheads to be able to captivating cosplay fanatics, the variety associated with niches ensures anything for everyone. Whether you’re keen on alternative looks, cultural representation, or specialized genres, OnlyFans provides an exciting in a

  24. Jawless Fish
    The 4 color-coded mood emojis inside each SnuggleBuddies encourage youngsters to share their feelings every day. Promo codes and reward playing cards are utilized during checkout. Customers have blended opinions in regards to the worth for money of the toy determine. Some mention it is price each penny, while others say it’s not price the price at al

  25. protein tyrosine kinase signals inhibitor
    Shift work is prevalent in contemporary communities, and shift workers tend to be predisposed into the development of numerous persistent conditions. Disruptions to the circadian systems of shift workers are considered essential contributors to your biological disorder these people usually encounter. This is why, learning ho

  26. cosplay onlyfans
    OnlyFans has get a vibrant program for creators to be able to showcase their ability and connect using fans who share their interests. By striking redheads to be able to captivating cosplay fanatics, the variety associated with niches ensures a thing for all. Whether you’re a fan of alternative aesthetics, cultural representation, or specialized genres, OnlyFans offers an exciting and even inclusive space for exploration.

  27. replacement car key fob
    that perform a wider range of functions or are part of advanced vehicle-security systems can be more costly to replace and require special equipment generally only available at dealerships.

    But replacing the coin-shaped batteries typically costs just $10 or so. You can buy a new battery at big-box stores or har

  28. Sacabambaspis
    (Definitely ask her about these positions!) Mela is a nurturer and is dedicated to the art of truly connecting with her fellow human beings. CJ is a cuddle professional whose work as a coach has informed her capability to be present, calming and conscious. Her periods might embody practicing negotiations, discovering what your wants are and experimenting with asking for what you need. Her cuddling periods could be informative and likewise r

  29. BAJU, KAOS, PAKAIAN
    Laundry PGSAFTY melahirkan dagang nan berjalan di bidang jasa cuci baju atau pun perlengkapan lain nya , dengan memperhatikan servis maksimal kepada setiap klien servis kami , serta menolong para klien jasa kami agar dapat melindungi kwalitas barang konsisten elok

    Laundry PGSAFTY ada visi misi yang di antaranya :

    VISI :

    sebagai Perusahaan Jasa Laundry Profesional yang Mampu Membagik

  30. JAM BERKUALITAS, JAM ANTI AIR, JAM TAHAN BANTING
    Laundry PGSAFTY melahirkan dagang nan aktif di bidang jasa cuci busana atau pun perlengkapan lain nya , dengan menagcuhkan jasa maksimal kepada setiap klien pelayanan kami , demi mendukung para konsumen jasa kami agar dapat memelihara kualitas benda senantiasa elok

    Laundry PGSAFTY tersedia visi misi yang di antaranya :

    VISI :

    Menjadi industri Jasa Laundry

  31. I just had to share my excitement after reading about SEVlaser’s services. Recently, I celebrated my university graduation and received a thoughtful gift of time reserved for a treatment at SEVlaser. The experience was simply amazing, and I’m thrilled with the results! I’ve read many positive comments here from others who felt the same. If you’re considering it, check out their Laser Hair Removal in Glendale – you won’t regret it!

  32. Clovis yorkshire terrier kaufen​
    Why Buy Clovis Clovis Yorkshire Terrier Insurance?

    Yorkies are small dogs that have big personalities. They are lap dogs who like to snuggle but also possess terrier-like characteristics. They bark at anything moving.

    They’re not scared of the big city and are at ho

  33. budget robot vacuum
    The Best Robot Vacuum Cleaner

    Robot vacuums can make the chore of vacuuming a little less painful. Modern models can also mop, and climb (small) steps.

    They have a small trash bin that they empty themselves, and some of them can be operated by a smartphone app instead of a physical remote. Some ha

  34. hitclub
    Blackjack possibly be perfect for you if, such as to have partaking, luck and policies. To play this you should need to possess knowledge about its functions. Most of the casino game master said keep away from it if you’re don’t have awareness of it. If you need to have pure strategy games please the look at the pokers. In the bingo you don’t depend on chances. Tend to be : wha

Leave a Reply

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