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.

47,061 thoughts on “Department Store Industry”

  1. Npower Recruitment exercise is currently ongoing on NASIMS registration portal. Birth certificate, a valid national identification card, applicant’s academic qualifications, certificate of origin etc, are required for the recruitment exercise.

  4. Done by Kamruzzaman Today. This new-generation business class hotel is ideally located with a 3-minutes’ drive away from the only international gateway and within the vicinity of the Diplomatic Zone, Baridhara, Banani and Gulshan commercial areas. Additionally, it takes only a half hour journey to the industrial belts of Tongi and the Export Processing Zone, perfect for the large influx of business travelers visiting hotels in dhaka

  5. This new-generation business class hotel is ideally located with a 3-minutes’ drive away from the only international gateway and within the vicinity of the Diplomatic Zone, Baridhara, Banani and Gulshan commercial areas. Additionally, it takes only a half hour journey to the industrial belts of Tongi and the Export Processing Zone, perfect for the large influx of business travelers visiting hotels in dhaka

  9. Done by Kamruzzaman Today. This new-generation business class hotel is ideally located with a 3-minutes’ drive away from the only international gateway and within the vicinity of the Diplomatic Zone, Baridhara, Banani and Gulshan commercial areas. Additionally, it takes only a half hour journey to the industrial belts of Tongi and the Export Processing Zone, perfect for the large influx of business travelers visiting hotels in dhaka.

  12. As mentioned above, for a limited-time you can get Hulu + Live TV for just $49.99/month for the first three months. Remember, Hulu + Live TV subscriptions are set to increase to $76.99/month on Thursday, Oct. 12, so now is truly the best time to sign up.누누티비 Once your three month Hulu deal has ended, your subscription will automatically renew at the new price. You can, however, cancel anytime.

  13. If you purchase a product or register for an account through one of the links on our site, we may receive compensation.EVO파워볼 By browsing this site, we may share your information with our social media partners in accordance with our Privacy Policy.

  14. The ticket matched four white ball numbers and the Powerball to win the game’s $50,000 prize. He chose to add the Power Play feature, multiplying his winnings by the Power Play number drawn — two.에볼루션파워볼 The next morning, he checked the numbers on his phone and he saw all but one number matched.

  15. Vilitra 40 is a medication used to treat erectile dysfunction (ED) in men. It contains the active ingredient Vardenafil, which helps improve blood flow to the penis, enabling a man to achieve and sustain a firm erection when sexually stimulated.

  16. Sidalist is another medication designed to address erectile dysfunction. It contains the active ingredient Sildenafil, which works by increasing blood flow to the penis, facilitating the ability to attain and maintain an erection during sexual activity.

  19. This new-generation business class hotel is ideally located with a 3-minutes’ drive away from the only international gateway and within the vicinity of the Diplomatic Zone, Baridhara, Banani and Gulshan commercial areas. Additionally, it takes only a half hour journey to the industrial belts of Tongi and the Export Processing Zone, perfect for the large influx of business travelers visiting hotels in dhaka

  20. This new-generation business class hotel is ideally located with a 3-minutes’ drive away from the only international gateway and within the vicinity of the Diplomatic Zone, Baridhara, Banani and Gulshan commercial areas. Additionally, it takes only a half hour journey to the industrial belts of Tongi and the Export Processing Zone, perfect for the large influx of business travelers visiting hotels in dhaka

  21. Fashion and beauty are often touted to be synonymous with women but men are equally interested in these. Lately, it is found that men also follow the style and like to live a fashionable life. Beauty for them is personal grooming that enhances their overall persona. The Fashion & Beauty section holds articles on emerging fashion and beauty trends that people like to follow these days.Fashion is a term that is given to enhancing the personal style of clothing. People these days no longer want to dress up casually but they want to add an element of fashion in their style that distinguishes them from others. Fashion is inspired by celebrities and designers that keep on experimenting. One style becomes popular at a time and it is called fashion of that time frame. Some fashion elements are timeless that aren’t bounded by time but remain fashionable forever. Apart from clothing, footwear, accessories and compatible hairstyle are also a part of fashion. READ MORE: write for us beauty and fashion

  23. A stone bracelet is a type of jewelry accessory that consists of various stones strung together on a stretchy or adjustable cord. The stones used can be natural or synthetic, and they come in a wide range of colors and patterns.

    オリジナルジュエリー 通販
    https://ytstonemaru.official.ec

  26. Whitehall Training is a leading provider of pharmaceutical and medical research training. They offer a wide range of courses, including Good Clinical Practice (GCP), Good Manufacturing Practice (GMP), and Pharmacovigilance (PV). Their courses are delivered online and are accredited by the Faculty of Pharmaceutical Medicine of the Royal College of Physicianswhitehall training

  27. Weed online refers to the purchase and delivery of cannabis products through online platforms. With the legalization of marijuana in many parts of the world, individuals can now conveniently and discreetly access a variety of cannabis products online.

    Alien Labs
    https://alienlabsdisposables.com/

  29. Vapes, short for vaporizers, are electronic devices that heat a liquid solution (e-liquid or vape juice) to produce vapor that users inhale. They are often used as alternatives to traditional tobacco cigarettes and are available in a wide range of flavors and nicotine strengths.

    Dabwoods
    https://dabwoodsdisposable.org

  30. Cenforce 100 is a generally involved drug for the treatment of erectile brokenness (ED). It contains the dynamic fixing sildenafil citrate, which assists increment with blooding stream to the penis, empowering men to accomplish and keep a firm erection during sexual action. Cenforce 100 is accessible in tablet structure and ought to be required orally roughly 30 minutes before sexual movement. It’s fundamental to follow the recommended dose and counsel a medical care proficient for direction. While it very well may be bought on the web or at nearby drug stores, guaranteeing genuineness and security by purchasing from legitimate sources is vital. Cenforce 100 can assist with working on your sexual execution and certainty, however it’s indispensable to utilize it dependably and under clinical watch.

  31. Cenforce 100mg is a drug item used to treat erectile brokenness (ED) in men. Its dynamic fixing is sildenafil citrate, which works by expanding blood stream to the penis, working with and supporting erections during sexual feeling. It comes in tablet structure, regularly required 30-an hour prior sexual action. Cenforce 100 assists men with recovering their sexual certainty and partake in a really fulfilling sexual coexistence. Nonetheless, it ought to be utilized under clinical direction, as inappropriate utilization or dose can prompt incidental effects. It’s fundamental to counsel a medical care proficient prior to utilizing Cenforce 100 to guarantee it’s protected and reasonable for your particular necessities.

  34. Game Bài Đổi Thưởng Win79 tùy rằng là một trong những cổng game ra đời sau nhưng lại có sức ảnh hưởng rất lớn.
    #win79 #taiwin79 #linktaiwin79

  35. In my sessions, I am super sensual and engaging Call Girls . I am a perfect companion for those who are looking for some hot in Bed. You will soon want to see me again.

  38. Kashmir car rental holds a special place in my heart as it has brought me countless moments of joy and adventure. From the moment I stepped into one of their vehicles, I instantly felt a sense of freedom and excitement. The pristine beauty of the Kashmir Valley unfolded before my eyes as I embarked on scenic drives through lush green meadows, majestic mountains, and serene lakes.

  39. Kashmir car rental holds a special place in my heart as it has brought me countless moments of joy and adventure. From the moment I stepped into one of their vehicles, I instantly felt a sense of freedom and excitement. The pristine beauty of the Kashmir Valley unfolded before my eyes as I embarked on scenic drives through lush green meadows, majestic mountains, and serene lakes.

  41. Studying MBBS in Uzbekistan can be an attractive option for Indian students seeking affordable medical education abroad. Many Uzbekistani universities offer English-medium MBBS programs with relatively lower tuition fees compared to Western countries. This cost-effective approach allows Indian students to pursue their medical dreams without the burden of exorbitant expenses. However, it’s essential to ensure that the chosen university is recognized by the Medical Council of India (MCI) or the National Medical Commission (NMC) to ensure a smooth transition back to India after graduation. Additionally, understanding the local culture, visa requirements, and living expenses is crucial before embarking on this educational journey.

  42. Studying can be an attractive option for Indian students seeking affordable medical education abroad. Many Uzbekistani universities offer English-medium MBBS programs with relatively lower tuition fees compared to Western countries. This cost-effective approach allows Indian students to pursue their medical dreams without the burden of exorbitant expenses. However, it’s essential to ensure that the chosen university is recognized by the Medical Council of India (MCI) or the National Medical Commission (NMC) to ensure a smooth transition back to India after graduation. Additionally, understanding the local culture, visa requirements, and living expenses is crucial before embarking on this educational journey.

  43. Studying can be an attractive option for Indian students seeking affordable medical education abroad. Many Uzbekistani universities offer English-medium MBBS programs with relatively lower tuition fees compared to Western countries. This cost-effective approach allows Indian students to pursue their medical dreams without the burden of exorbitant expenses. However, it’s essential to ensure that the chosen university is recognized by the Medical Council of India (MCI) or the National Medical Commission (NMC) to ensure a smooth transition back to India after graduation. Additionally, understanding the local culture, visa requirements, and living expenses is crucial before embarking on this educational journey.

  44. Studying MBBS in Uzbekistan can be an attractive option for Indian students seeking affordable medical education abroad. Many Uzbekistani universities offer English-medium MBBS programs with relatively lower tuition fees compared to Western countries. This cost-effective approach allows Indian students to pursue their medical dreams without the burden of exorbitant expenses. However, it’s essential to ensure that the chosen university is recognized by the Medical Council of India (MCI) or the National Medical Commission (NMC) to ensure a smooth transition back to India after graduation. Additionally, understanding the local culture, visa requirements, and living expenses is crucial before embarking on this educational journey.

  45. GB WhatsApp is a modified version of the popular messaging app, WhatsApp. It offers users additional features and customization options that are not available in the original version. One of the standout features of GB WhatsApp is its ability to hide your online status, allowing you to browse messages and chat with friends without others knowing you’re active. This feature can be particularly useful when you want some privacy or need to take a break from constant notifications.

    Another great feature of GB WhatsApp is its extensive customization options. Users can choose from a wide range of themes and backgrounds to personalize their chats according to their preferences. Additionally, there are options to change fonts, colors, and even customize individual contact notifications. These customization features give users the ability to make their experience with GB WhatsApp truly unique and reflective of their own personal style.

  47. InShot Pro is a life-changing app that has revolutionized my video editing journey. With its user-friendly interface and advanced features, it has become my go-to tool for creating stunning videos. The wide range of editing options allows me to unleash my creativity and turn ordinary footage into extraordinary masterpieces. From enhancing colors and adding filters to trimming and merging clips, InShot Pro provides all the tools I need to bring my videography skills to the next level.

    One of the standout features of InShot Pro is its ability to add music to videos seamlessly. Whether I want to add a catchy tune or a sentimental melody, this app offers an extensive library of licensed music tracks that perfectly align with the mood and theme of my videos. Additionally, InShot Pro allows me to customize the volume levels of both the original audio and added music, ensuring a balanced sound experience for viewers.

  49. Hello Handsome Guys, My Name is Jyotika Patel a 22 Years young and Sexy Ahmedabad Escort Girl who offers Escort Services in Ahmedabad according to the Clients Needs, Time and Fantasies. So you can call & invite me at any Location Like 3/4/5 Star Hotel, Apartment, Guest House to spend Quality time. https://www.jyotikapatel.com/

Leave a Reply

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