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.

218,478 thoughts on “Department Store Industry

  1. over here
    Range Oven Dual Fuel – Gas Cooktop Versatility and Electric Oven Precision

    A dual-fuel range oven blends the flexibility of a gas cooktop with the power of an electric oven. They’re great for cooks who like rapid burner heat when cooking but prefer the precise, consistent heating of an electric oven.

    Make an appointment with a showroom

  2. sell pallets near me
    Why Use a Wooden Palette For Oil Painting?

    For oil painting wooden palettes are employed. They are light and easy to clean. They also look gorgeous.

    Many images of artists at work are still around. Some depict a wooden palette similar to the ones Vermeer employed.

    <b

  3. sofas leather
    Why a Leather Sofa Is a Wise Investment

    When you are choosing a new couch take into consideration the numerous factors that make leather an excellent option. Then, you can make an informed decision on the ideal sofa for your home.

    Leather doesn’t attract odors. This is great for peop

  4. https://notes.io/w9mXE
    Добрый день, дорогие читатели! Поговорим о лечением паразитарных заболеваний. В статье вы узнаете о том, как , как эхинококкоз печени и другие.

    ## Как паразитарные заболевания влияют на здоровье?

    Инфекции, вызванные паразитами — опасное состояние, которая требует профессионального подхода. Например, эхинококкоз легких поражает важные органы.

  5. sell pallets near me
    Factors to Consider Before Making a Decision to Purchase Used Pallets

    The purchase of used pallets can help save your business money and is also eco sustainable. However, there are several factors to consider before making a decision to purchase pallets.

    Many companies will be happy to sell unused or empty pallets. Some companies will even pay you for them! Find

  6. click here
    Stem cells (SCs) therapy is a new promising therapeutic modality for type 1 diabetes (T1DM). We performed a systematic review and meta-analysis to evaluate the efficacy and safety of stem cells transplantation (SCT) in patients with T1DM. We searched five literature databases (MEDLINE, EMBASE, Web of Science, WanFang and CENTRAL) up to 31 October 2019. 29 studies (487 patients with T1DM) were included in our m

  7. PAYUNG, PAYUNG ANTI BOLONG, PAYUNG MURAH
    menanti dalam waktu yang lama , karena di laundry PGSAFTY sudah memiliki jasa WASH AND DRY

    2. Apa saja fasilitas yang di berikan oleh Loundry PGSAFTY ?

    Selain mencuci , Mereka juga membagikan fasilitas berupa detergen gratis , pewangi gratis , seterika gratis , melipat gratis dan juga metode mencuci bersih dan selesai dalam waktu 1 jam , selain itu Loundry PGSAFTY juga buka denga

  8. paignton french door glass replacement
    Costs and Benefits of French Door Glass Replacement

    The majority of French doors are made of double-paned glass to increase energy efficiency and decrease outside noise. Unfortunately, this double paned glass can be prone to lose its seal over time. If this happens, the window becomes murky with a milky substance separating t

  9. Cuddly coastal companion
    The daybreak of vertebrates is documented by fossils that are preserved as either soft-tissue imprints, or minute skeletal fragments, and it is typically difficult for palaeontologists to inform which ones are dependable vertebrate remains and which merely replicate our concept of an ancestral vertebrate. Every time you click on a link to Wikipedia, Wiktionary or Wikiquote in your brows

  10. Französische Bulldogge mit langer Nase kaufen
    Should Buy Or Adopt a Pet?

    The decision to adopt or purchase a pet is a big decision that will affect you and your pet for the duration of their lives. Before making a choice, it’s important to consider your choices and weigh the pros and cons.

    Most animals that are available for adoption at shelters and rescue organizati

  11. robot vacuums reviews
    How to Choose a Robot Hoover and Mop

    Some robot mops are vacuums that also sweep. Others perform both. The sweeping pads and dustbins should be emptied regularly on robot mops that only sweep.

    It is also crucial to regularly wash (or replace) mops for those who mop. V

  12. 花蓮包車
    Floweren atau yang lebih dikenal sebagai 花蓮, merupakan salah satu destinasi wisata paling menawan di Taiwan. Dengan pemandangan alam yang menakjubkan, budaya yang kaya, dan keramahan masyarakat setempat, Floweren menjadi tempat yang wajib dikunjungi oleh setiap pelancong. Salah satu cara terbaik untuk mengeksplorasi berbagai sudut indah Floweren adalah melalui layanan 花蓮包車 atau sewa mobil pribadi

  13. best bunk bed ideas
    Find the Best Bunk Beds

    When you’re preparing the bedroom of your child or decorating the guest room, bunk beds can make space for two (or more!) without breaking the bank. We spoke to experts to discover the most affordable options.

    Find wood materials that can stand up to a lot of

  14. Ww88
    Nhà cái WW88 đang nổi lên như một trong những nền tảng cá cược trực tuyến phổ biến nhất tại Việt Nam. Với vô vàn trò chơi hấp dẫn cùng với dịch vụ chăm sóc khách hàng chuyên nghiệp, WW88 không chỉ thu hút những người yêu thích thể thao mà còn cả các game thủ đam mê casino online. Bài viết này sẽ đi sâu phân tích và tìm hiểu về nhà cái WW88, từ nguồn gốc, các sản phẩm

  15. csgo case battle
    CS2 Case Battles

    Case battles are a distinctive aspect of the CSGO experience. cs2 case battles offer a range of benefits, from enhancing teamwork skills to building a sense of camaraderie.

    In a case-battle, players purchase the same cases simultaneously and then compete to crack them open. The player with th

  16. used pallets for sale
    Factors to Consider Before Making a Decision to Purchase Used Pallets

    The purchase of used pallets can save your company money and is also environmentally sustainable. There are a variety of factors you should consider before buying them.

    Many companies are happy to sell unused or empty pallets. Some companies will even pay you for pallets! Look for markings or

  17. wall bio ethanol fireplace
    A Wall Bioethanol Fireplace – A Stylish Centre-Place For Your Home

    A wall bioethanol fireplace is a user friendly, stylish centre-piece for your home. Simply put the clean-burning ethanol fuel into the burner( s), spark with a fire lighter, and delight in the dancing orange flames and additional heat.

    You can hang a bioethanol firep

  18. free corp info
    For example, just for argument’s sake, let’s say we create a pot of 10% ownership that is defined aside for that employees. Which means that employees can easily their share of this 10% gradually. The pool of “owners” will grow with time, however the workers could sell their shares way too. Anyway, they’d be ahead in the game. They’d be getting their salaries plus this partial ownership of the c

  19. case battle
    CS:GO Case Battle

    CSGO Case Battle is a unique and thrilling method of opening a case. It’s a game played by players who purchase cases at the same time and compete to take home more valuable items. It is not unusual for the winner to earn hundreds of dollars.

    Csgo Case Battle is completely free to play and

  20. read more
    Neutrophils are essential effector cells of immune system for clearing the extracellular pathogens during inflammation and immune reactions. Neutrophils play a major role in chronic respiratory diseases. In respiratory diseases such as asthma, chronic obstructive pulmonary disease, cystic fibrosis, lung cancer and others, there occurs extreme infiltration and activation of neutrophils followed by a cascade o

  21. bedside crib with wheels
    A Bedside Cot For Twins

    If space is a problem some parents opt to share a bed with twins. This is in line medical guidelines and can aid in calming and harmony during sleep.

    To decrease the risk, it is essential to follow the safe sleeping guidelines. It’s essential to keep your baby’s crib, cot or bassinet near by.

    <b

  22. https://ceri188.com/
    Untuk Anda yang minat untuk bermain perjudian online jadi anda seharusnya mencari satu diantaranya alternatif website agen judi sah. Sisi yang ada memanglah tidak seluruhnya sah serta oleh karenanya Anda harus mencari serta dapatkan satu diantaranya opsi yang sah dan dapat dihandalkan. Apabila lantas anda berminat untuk dapat mengerti dan sejumlah poin utama. Selaku pemain Anda harus dapat ketahui mengenai sejumlah kelebihan yang disodori

  23. Costco’s Pepperoni Pizza is a slice of pure joy for pizza lovers everywhere! Known for its generous size and irresistible flavor, this pizza is loaded with crispy, savory pepperoni atop a layer of perfectly melted mozzarella cheese, all on a thick, fluffy crust. The secret lies in its balanced seasoning and high-quality ingredients that make every bite a burst of cheesy, meaty goodness. Whether you’re grabbing a quick lunch or catering a party, Costco’s Pepperoni Pizza is a crowd-pleaser that combines affordability with mouthwatering taste. It’s the ultimate go-to for satisfying pizza cravings!

  24. https://plumbers-bethnal-green.co.uk
    Why a Professional Boiler Installation is Essential for Home Basic safety With regards to home safety, there are many things to consider. From fireplace alarms to carbon monoxide detectors, home owners are constantly trading in steps to protect their families and assets. However, one region that frequently gets overlooked is certainly the boiler installation. Many home owners assume that seeing that long as

  25. französische bulldogge kaufen
    A French Bulldog For Sale in New York

    Purchasing a French bulldog available in New York is a big commitment. You’ll need to cover medical and veterinary treatment as well as to invest in a variety of pet toys and other items.

    Breeders who are unethical often prod

  26. A reputable mesothelioma lawyer should offer a no-cost case evaluation to determine eligibility for compensation. Additionally, the best mesothelioma attorneys work on a contingency basis.
    This arrangement maximizes compensation for clients.

    Also visit my blog: Asbestos attorney

  27. Costco’s Pepperoni Pizza is a slice of pure joy for pizza lovers everywhere! Known for its generous size and irresistible flavor, this pizza is loaded with crispy, savory pepperoni atop a layer of perfectly melted mozzarella cheese, all on a thick, fluffy crust. The secret lies in its balanced seasoning and high-quality ingredients that make every bite a burst of cheesy, meaty goodness. Whether you’re grabbing a quick lunch or catering a party, Costco’s Pepperoni Pizza is a crowd-pleaser that combines affordability with mouthwatering taste. It’s the ultimate go-to for satisfying pizza cravings.
    https://costcofoodcourtmenu.com/pepperoni-pizza-slice/

  28. website link
    Are with Amateur geology out of earlier experience, or possibly could it be modern in your circumstance? Regardless, it is not necessary. This will aid you to carry on an open up brain and in no way stop up being swayed by way of earlier failures. atavi.com/share/x0hqjgz12n9ed of males and girls have been aided from the information positioned on the internet at my webpage. Below you will discover a large selection involving i

  29. ragnarok private server
    Unlock ro basic mobile the joys of adventure on our exclusive Android private server for Ragnarok Mobile, the premier MMORPG for Android gadgets. Download for free and delve into a world of boundless exploration, epic battles, and vibrant community interactions. Our non-public server offers a seamless Android MMORPG experience, good for cell gaming lovers looking for

  30. hoki311
    Metode menang main judi online sangatlah ringan didapat. Kemajuan dunia judi permainan online sekarang memanglah tidak perlu disangsikan kembali. Sejalan dengan berjalannya waktu, judi taruhan online memang makin bertambah pecintanya masalah ini bisa dibuktikan dengan kehadiran website judi. Datangnya web biro judi ini dapat jadi bukti kalau taruhan judi punya banyak pecinta. Andil website ini sudah dipastikan sangat penting yakni sebagai satu diantara

  31. sources tell me
    Ghost 2 Immobiliser Near Me

    Autowatch Ghost is a revolutionary immobiliser that guards your vehicle against the latest type of vehicle theft. It connects directly to the vehicle data network, without LED indicators or key fobs. To start the vehicle, you’ll need to enter a unique PIN code.

    Our tec

  32. immobiliser ghost
    Ghost Immobiliser Cars

    Ghost immobilisers are an advanced security device that protects your vehicle from key cloning and hacking. It is completely undetectable, and leaves no trace after installation. This makes it a popular option for owners of expensive cars or cars that are rare.

    <br

  33. buckingham gas engineers
    Why Landlords Required to Get a Gas Safety Certificate

    Gas, when burned improperly, produces excess carbon monoxide gas that can eliminate within hours. Carbon monoxide gas has no odor and taste and its symptoms are typically puzzled with being tired, so having regular gas safety checks performed is critically important.

    Tradespeople have an obligation to a

  34. Columbia State Historic Park
    To better handle the time you have in a day, have a approach for it! Normally sit down the night just before and make a listing of what you ought to get carried out. Prioritize every little thing on the listing and cross jobs off just one by just one as you achieve them. Get into this behavior, and you should really arrive at much more goals and have more time in the day.

    Use a timer wh

  35. range oven dual fuel
    Black Dual Fuel Range Cooker

    Bring the beauty of dual-fuel range cookers to your kitchen with this top appliance. Enjoy the responsive burner heat to cook and the precise oven heating for baking.

    A black dual fuel range is an incredibly versatile option for cooks who love the gas c

  36. ghost immobiliser and tracker
    Ghost 2 Immobiliser Fitting Near Me

    Ghost Immobilisers offer a discreet way to prevent key duplication. They are tamperproof and weatherproof, which makes them nearly impossible to get into. They do not emit any radio signals, meaning that thieves aren’t able to identify them using tools for detecting them.

    <

  37. portsmouth french door handle repairs
    Replace Garage Door With French Doors

    Replacing your garage door with French doors is a chic home improvement that can transform your home. You can pick from a variety of designs and colors to match your existing decor. This upgrade offers many practical benefits, including an increase in energy efficiency as well as improve

  38. dual range cooker
    Dual Fuel Range Cookers

    Eva Bleyer is a reviews analyst at Good Housekeeping’s Kitchen Appliance and Innovation Lab. She has tested dozens of ranges in the past three years including dual fuel models.

    Dual fuel range cookers blend the instant heat control of gas burners and precise electric oven temperatures. This versatility makes them a popular option for homes th

  39. nouveau code bonus casino en ligne
    Introduction

    Le sur Internet établissement de jeu industrie a jamais n’a été plus vibrant, avec tout nouveau plateformes entrer dans le marché systématiquement pour captiver joueurs avec innovant technologie, innovant jeux et séduisant avantages. Si vous recherchez votre suivant jeux sur PC destination, ne cherchez pas plus que le plus à jour no

  40. read more
    Background Helicobacter pylori is a spiral-shaped gram-negative bacteria associated with peptic ulcer, gastritis and gastric cancer. The global burden and occurrence of H. pylori infection remains prevalent and worldwide. Despite this, the trend of the bacterial resistance is not recently studied which can help in the adoption of global, regional and local prevention strategies. Objective The aim of the study

  41. stagecoach rides in columbia
    An space that lots of people have hassle with in time management is environment deadlines. You have to established deadlines and stick to them. Any process you have is heading to just take a particular amount of time and if you have a deadline for your jobs, your lifestyle will operate effortlessly.

    If you battle with taking care of time, test boosting the concentrate on each activity.

Leave a Reply

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