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.

302,332 thoughts on “Department Store Industry”

  1. case battle
    Four Simple Steps to Win a CSGO Case Battle

    Case battle in CSGO is an thrilling game mode where you can bet cases and compete with opponents. This unique game mode can be found outside of the official CSGO client on case-opening sites which are not associated with Valve.

  4. recommended site
    Bioethanol Fire in Media Wall

    Providing you or someone you know is skilled at measuring, drilling and screwing, you will be able to install an IGNIS wall mounted ethanol fireplace. Just make certain you utilize a non-combustible installing surface and follow all producer standards carefully.

  6. cheap leather sofa
    How to Identify Genuine Leather Sofas

    Genuine leather furniture is durable and timeless. It can be difficult to distinguish between genuine leather and “split”, “bonded” or faux (fake leather) options.

    Check for rough or uneven edges that suggest the product is genuinely leather. A bumpy underside and “fat wrinkles” are al

  7. cgrp signals receptor
    Hereditary peripheral neuropathy (HPN) is a complex group of neurological conditions brought on by mutations in genetics expressed by neurons and Schwann cells. The inheritance of a single mutation or several mutations in a number of genetics leads to disease phenotype. Customers exhibit symptoms during development, while very young o

  8. gas safe buckingham
    Picking Gas Fitters in Buckingham

    When you require a plumbing technician in Buckingham, make sure you select one with the ideal qualifications. These plumbing technicians can deal with everything from fixing a leaking tap to installing brand-new boilers and heater.

    A female fou

  9. Pixie mini macaw
    Akko Macaw Keycaps

    Keycaps have a minor impact on speed and accuracy of typing. They also impact the sound generated by a keyboard.

    The Akko macaw keycaps are constructed of dye-sublimated plastic. This ensures that inks will not fade away over time.

    <br

  10. check it out
    Choosing black leather 4 seater sofa is a beautiful addition to any living room. A fantastic option for larger spaces, it offers plenty of seating if you regularly have friends and family over. Complement your L-shaped sofa with armchairs in a matching or contrasting style. To ensure that your new leather corner sofa appears at its best, make sure to read our guide to cleaning and maintaining furniture upholstered.

  11. Car locksmith
    In today’s fast-paced world, the convenience of possessing a reliable automobile at your convenience is something numerous take for awarded. However, unexpected circumstances can arise, departing you stranded plus frustrated. Whether you’ve misplaced your take some time, locked them inside your car, or faced a malfunctioning ignition system, these moments can rapidly turn into

  12. https://glazier-finsburypark.co.uk
    Past Glass and Glazing: Uncovering the Hidden Talents of Glaziers

    At Beyond Glass and Glazing, we take great pride in not only offering top-notch glass and glazing services however likewise in showcasing the covert skills of our knowledgeable glaziers. We believe that glaziers are greater than simply experts that set up and fix glass; they are artists who transform areas, boost aesthetic appea

  13. four seater leather couch
    A 4 Seater Leather Sofa Is a Great Choice For Single-Family Homes Or Apartments

    The Joybird Eliot is a leather sofa that is ideal for homes with a single family or apartments. It offers a soft, comfortable feel and an extremely durable frame made of birch wood. It has hidden cushion tie-downs to stop seat cushion

  14. daftar dewapokerqq
    Dewapokerqq adalah salah satu platform permainan poker online tersohor yang sangat diminati oleh para penggemar poker. Dengan banyak fitur unggulan dan pengalaman bermain dalam memuaskan, situs ini telah menjadi tujuan favorit untuk banyak pemain. Bagi yang ingin bergabung, bisa dilakukan dengan cepat dan mulus melalui platform resmi. Proses pendaftaran didesain sederhana agar pemilik baru dapat segera menikmati permainan dengan t

  15. ghost 2 immobiliser review
    Ghost Immobiliser Problems

    The Ghost immobiliser can help in preventing car theft. It makes use of buttons on the steering wheel, door panels and centre console to create a unique pin code sequence that prevents your car from getting started.

    However, like any aftermarket system, it can

  16. Ahaa, its pleasant conversation concerning this paragraph here aat this web
    site, Ihave read all that, so now me also commenting at this place.

    my website … website

  17. brands of refrigerators
    Great Housekeeping Recommends the very best Fridges to Buy

    A top quality refrigerator is one of the most essential kitchen devices you can purchase. Excellent Housekeeping personnel shopping writers reviewed the current designs to suggest the finest fridges for your home.

    Smart fridges include per

  18. https://ratujudi123.org/
    saat sebelum diolah permainan itu ada banyak hal yang penting anda kenali serta ketahui dengan bagus satu diantaranya ialah budaya bermain. dalam memilih untuk memainkan permainan taruhan judi slots online memang semestinya tersadari serta dilandaskan oleh beberapa pengetahuan penting dan satu diantara antara lain yaitu mengerti formalitas yang ada. adat dalam perjudian akan terus ada juga termasuk pada permainan slots ini maka dar

  19. bird african grey for sale
    Jako Parrot For Sale

    Boy is a healthy DNA sexed Parrot and is looking for an eternal home. He has been vaccinated, and his tests have been positive.

    Parrots make wonderful companions for those who have the time and funds to care for them. They are extremely intelligent and requi

  20. mid century modern leather couch
    L-Shaped Leather Couch – Versatile and Elegant

    L-shaped leather sofas are great for large families or those who love entertaining guests. They can accommodate more guests than a traditional couch and take up less space in the room.

    A leather sectional is easy to maintain as the removable covers are machine washable. Yo

  22. Strategi Bermain Slot Mahjong Ways
    Jika Anda penggemar slot online, terutama permainan Mahjong Ways, maka PANGKAT88 adalah situs slot terbaik untuk Anda. Sebagai situs slot gacor terpercaya, PANGKAT88 menawarkan peluang besar bagi pemain untuk mendapatkan scatter hitam gratis setiap hari. Dengan fitur ini, Anda berkesempatan untuk meraih kemena

  23. caring for an grey parrot
    African Grey Parrot For Sale – Zuri

    Zuri is searching for his forever home

    Parrots require lots of human interaction and stimulation. If you’re unable to provide this, then the term “Grey” is not for you.

    Indiv

  24. WW Pressure Washing

    Pressure Washing Your Home

    The Ultimate Guide to Pressure Washing Your Home

    An in-depth guide covering the benefits, methods, and best practices for pressure washing various parts of a home.

    Pressure washing is an essential maintenance task that can revitalize the a

  25. range dual fuel cookers
    Choosing the Best Price Range Cookers

    A dual-fuel range cook can add value to any home. It’s a great option for chefs who are professional and homeowners who host parties frequently. It’s also a great choice for living spaces that are open.

    The gas cooktop can reach high BTU levels for searing and high heat cooking. The electric oven

  26. range cooker uk
    Dual Fuel Range Cookers

    Dual fuel range cookers offer quick heating control in the oven, and an even baking experience on the cooktop. They are an excellent choice for cooks who like exploring new recipes.

    Before dual fuel range cookers for sale decide to purchase a dual fuel ran

  27. Chroom 6 verwijderen Nijmegen
    Vind hier een overzicht van veel voorkomende asbestlocaties. Asbestinventarisaties mogen alleen worden uitgevoerd door deskundige gecertificeerde bedrijven. Een energielabel geeft meer inzicht in hoe goed de woning geïsoleerd is, en kan helpen om uw huis comfortabeler en energiezuiniger te maken. Altijd zeer vriendelijk medewerkers, al kom jij daar om 7 uur s’ochtends 😄 Lees meer… Eerste en goede ervar

  28. landlord gas safety certificate buckingham
    Why a Landlord Gas Safety Certificate is a Legal Requirement

    A landlord gas safety certificate is a legal requirement for UK landlords. It shows that all of your appliances have been evaluated and are safe to utilize. It also identifies any hazardous appliances that need to be fixed.

  29. momelotinib inhibitor
    Sadly, most ML methods for causal inference were studied under single-level settings where all folks are independent of every other and there’s small operate in using these techniques with clustered or nested information, a typical setting in education researches. This report investigates using one particular ML method considering arbitrary for

  30. Click here
    When it comes to expressing love and connection within families, Aunt and Nephew shirts offer a unique and fun way to showcase that special bond. Whether it’s for a family gathering, a birthday celebration, or just an everyday outfit, these shirts serve not only as a fashion statement but also as a reminder of the cherished relationships we hold dear.

    ### The Significance of Aunt and Nephew Shirts

    <b

  31. recommended site
    A Wall Hung Bio Ethanol Fire Adds Warmth and Ambiance to Any Room

    A wall hung bio ethanol fire is a streamlined, contemporary clean-burning fireplace that hangs like a picture. They produce real flames, real heat, and add a modern twist to any room.

    <

  32. 債務重組成功
    找到自己進入債務重組的離合器可以很重要壓力和經驗這當然是隔離。常數擔心財務可能會掩蓋每一個一部分生活，但是它很重要理解我們現在有途徑開放使您能夠在這個地形中瀏覽這當然是難的。在本文中，我們要去探索四個關鍵原則：特定的自願計劃（IVA），債務和解產品（DRP），破產現實，因此不斷發展的融資景觀。通過了解這些選項，你可以圖表課程邁向經濟復甦。

    讓我們專注於個人自願安排（IVA）。iva只是協定那是正式使個人談判結構化付款計劃和他們一起債權人。這個佈置通常會持續為了5年和讓你付清一部分你的債務基於你有什麼有能力買得起。在主要的優點iva是更大破產的嚴重後果，提供恢復的選擇控制財政這使得可行的付款就是這樣保護你。通過選擇此路徑，您可以輕鬆致力於無債務一個主意這當然是清晰的地方。

    接下來

  33. caring for an grey parrot
    African Grey Parrots

    African grey parrots have for a long time charmed avian fans with their incredible intelligence and jovial personalities. can imitate speech and solve puzzles, as well as create strong emotional bonds with their owners.

    In this video in this video, a Congo African grey named Griffi

  34. gas safe id card
    The Value of Normal HVAC Maintenance: Tips from Professionals

    At Our company, we recognize the significance of regular cooling and heating maintenance. As experienced specialists in the sector, we have actually seen firsthand the benefits that come from correctly keeping home heating, air flow, and a/c systems. Many house owners usually undervalue the relevance of routine HVAC maintenance, which

  36. click through the up coming page
    Which Fridge Brand Name is Right For You?

    Fridges are a big financial investment, so you wish to be sure that the brand you choose is dependable and reliable. The very best brands use a vast array of features, including energy effectiveness and smart ones that make grocery list preparation easy.

    Frigidaire fridges get top marks from co

  37. https://hokiactive.com/
    untuk dapat main judi slots online, betaruh tentunya mesti membuat account lebih dahulu. proses untuk bikin account judi slots online memanglah bisa jalan dengan gampang. sebab itu, betaruh harus betul – betul menyadari bagaimana caranya bikin account dengan beanr. berikut di bawah ini yakni petunjuk simpel untuk bikin account judi slots online di website yang dapat dipercaya.

    tentukan webnya dahulu

  38. see more
    Why Choose a Ghost Immobiliser Installer?

    The Ghost Immobiliser is a highly effective anti-theft device which prevents key copying. It doesn’t rely on LEDs or other RF signals to operate and is therefore undetectable to thieves. It also comes with an option for service valet that lets you disable the PIN input sequence to ensure that your mechanic or garage can service your vehicle with

  40. detailed info here
    What are among their less than comfortable habits? Well for one, NOT bending the knees enough; which causes a lot of impact near the ankles and knees. And two, developing the habit of landing during the heel, rather than the forefoot. This, basically stops the runner’s forward momentum, and ‘puts the brakes on.’ Also, it sends a ‘shock’ through all leg, beginning the heal, and sending it u

  41. Greetings I am so grateful I found your site, I rreally found you by error, while I was
    browsing on Digg for something else, Regardless I am visit here
    now and would just like to say thanks for a remarkable post and a all round interesting blog (I also love the theme/design), I don’t have time to browse it all at the minute bbut
    I have book-marked it and also added your RSS feeds, so when I have
    time I will be back to read a great deal more, Please do keep up the great
    work.

  42. ghost 2 immobiliser review
    Ghost 2 Immobiliser Cost – A Cost Effective Way to Protect Your Car From Theft

    Ghost Immobiliser, a cutting-edge security system designed to deter even the most sophisticated theft attempts. It is installed discreetly inside your vehicle and stops the engine from running until you enter a specific

  43. Duxi yorkshire biewer kaufen​
    Introducing Suzie the Yorkie Puppy

    It is important to dedicate time to your Yorkie while you are training. An adult dog with a good track record may prefer to relax on the couch, but puppies require regular walks daily and constant supervision by a command.

    The narrator explains that the toy’s paw can be squeezed which causes it to sound like it’s whir

  45. rehabilitate wastewater infrastructure
    Many people build websites that are difficult to read due to poorly chosen fonts. Using the correct font size provides the viewer with a pleasant reading experience. The article below has many tips that can show you these aspects and more in terms of web design.

    Avoid using so-called “mystery meat navigation”. This involves u

  46. emergency gas engineer buckingham
    What Does a Gas Engineer Do?

    A gas engineer is accountable for the setup, assessment and upkeep of gas devices. They likewise guarantee that these devices adhere to safety regulations. They should have an appropriate certification and be registered with the Gas Safe Register.

    A good gas engineer will always put in the time to do a comprehensive

  47. fob car key replacement
    How to Choose a Replacement Car Key Fob Case

    A key fob case will protect your car’s key fob against water damage. Key fob cases are waterproof linings inside and outside. They also protect against accidental pressing by increasing the pressure required to activate buttons.

    A lot of newer vehicles require reprogramming the key fob. This can be c

  48. Learn Alot more
    Give Your Living Room an Eco-Friendly Makeover With a Vegan Leather Couch

    If you’re looking to give your living space an eco-friendly update Look at a vegan leather sofa. These couches have the same features of traditional leather sofas and are a great option for any home.
    <br

  49. symptoms of ADHD in adults female
    Attention Deficit Disorder in Adults

    Attention deficit disorder in adults can be difficult to diagnose and treat. Therapists can assist by examining symptoms and root causes, educating patients on how to create structure and alter their behaviour, and offering medication when needed.

    People with ADD/ADHD experience difficulties with h

  50. just click the following web page
    4 Seater Black Leather Sofa

    There’s a lot to consider when you’re looking for a four seater leather sofa in black. You’ll want to pick one that is elegant and comfortable as well as has solid frame.

    This West Elm sofa comes at an excellent price and is very ada

Leave a Reply

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