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.

270,076 thoughts on “Department Store Industry”

  2. gas safety engineer buckingham
    Why You Should Get a Gas Safety Check in Buckingham

    A gas safety check is a necessary assessment by a certified expert to make sure that your residential or commercial property’s gas home appliances, piping, and flues remain in good working order. Failing to do so could lead to fires, explosions, and carbon monoxide poisoning.

    These test

  5. use this link
    Deep Leather Couch

    If you’re in search of a thick leather sofa that is fashionable and durable, this option is worth taking into consideration. It is made of dried kiln-dried wood, has an Eco sustainable design, and is upholstered with high density foam cushioning.

    It’s also available

  6. Fascia and Soffit Replacement
    Soffit and Fascia Repair Near Me

    Roofers, gutter specialists and general contractors are all experts who can repair soffit and fascia. It is essential to research these professionals prior to selecting one to do the job.

    Neglected soffit and fascia can create cracks or openings that pro

  7. bio ethanol fireplace for media wall
    Wall Mounted Ethanol Fireplaces From Art Fireplace

    Ethanol wall mounted fireplaces use a modern clean-burning option that produces dynamic flames and real heat. They are easy to fuel, adjust and extinguish.

    They need no chimney and produce extremely little smoke and carbon monoxide.

  8. rayleigh french door hinge repairs
    Replace Garage Door With French Doors

    Removing your garage door and replacing it with French doors is a fashionable home improvement project that can transform your space. You can pick from a wide range of designs and colors to complement your existing decor. This kind of upgrade also provides practical benefits like an increase

  10. hoki311
    seorang betaruh slots online selalu harus mendalami beragam istilah penting di dalam permainan itu. dengan mengenal seluruh arti yang ada pada permainan atau permainan slots online itu, keuntungan bakal simpel diperoleh. lalu, apa arti utama di perjudian slots online itu? berikut yaitu jejeran istilah utama di perjudian slots online yang penting disadari beberapa betaruh.

    spin

    spin merupakan perintah untuk

  12. redhill french door hinge repairs
    Why It’s Important to Repair Broken French Door Glass

    French door glass that has been damaged can be a significant safety risk. It is recommended to repair it as soon as is possible. It can also impact the security of your home and increase energy efficiency.

    Replacing a pane of glass in an ex

  13. tan leather 4 seater sofa
    Buying a Black 4 Seater Leather Sofa

    If you’re thinking about buying a black sofa There are a few things to consider. First, ensure it fits your space. A sofa that is too big can make your space feel crowded and overwhelming.

    Another thing to consider is the hue of your walls and rugs. So

  15. wall bio ethanol fireplace
    Bioethanol Wall Mounted Fire

    Wall-mounted bioethanol fireplaces are ‘plug and play’ and can be fitted in less than an hour. All they require is clean-burning bioethanol fuel and a few basic actions.

    They can be mounted on a wall, or recessed into a recess. They usuall

  17. try these out
    Treatments For ADD – Drugs and Counselling

    Counseling and medication are both effective treatment options for ADD. Both are important to test to see which is more effective.

    People suffering from classic ADD are disorganized, inattentional and are often hyperactive. They have a lack of blood flow to the prefrontal cortex and the basal ganglia. They also

  18. tan leather 4 seater sofa
    4 Seater Leather Sofas uk

    There’s a sofa that will fit every design. The Devon is a good example. It is a classic in distressed leather that will get better with age. It’s deeply cushioned and has fixed back and seat cushions that are cushioned with pocket-sprung foa

  19. view website
    Buy French Bulldog Puppies

    French bulldogs make excellent pets for families of all sizes. They are docile and easily adapt to any home environment. However, they need moderate physical exercise outside and could be prone to snoring or drooling at times.

    Find the ideal Frenchie breeder for your l

  20. mid century leather sofa
    Deep Leather Couch

    If you’re looking for a deep leather couch that’s both elegant and durable, this option is worth looking into. It’s made of kiln-dried wood and is made of eco-friendly materials and comes with high-density foam cushioning.

    It’s also available in a wide range of colors.

  21. csgo case battle
    CS2 Case Battles

    CS2 battles give an edge of competition to the opening of cases. They are entertaining and engaging. They also foster teamwork and the ability to work together in stressful situations, abilities which are valuable in gaming and in real life.

    The best CS2 case battle site requires several cons

  23. AUY-922 ic50
    Most pregnancy losses were due to spontaneous abortion (81.3% of all losses (95% CI = 76%-86.1%)). Rate of obstetrical complications was 25.4% (95% CI = 13-40.2%) among all finished pregnancies. Pooled estimate of preterm labor was 12.8% (95% CI = 8.7%-17.5%), and pooled estimate of low birth weight (LBW) was 10% (95% CI = 6.2-14.6%). Considering the findings of the study, a safe pregnancy after UAE is obviously pos

  25. gas safety engineer buckingham
    What Does a Gas Engineer Do?

    A gas engineer is accountable for the setup, evaluation and maintenance of gas devices. They likewise guarantee that these devices adhere to safety policies. They should have a pertinent qualification and be registered with the Gas Safe Register.

    <

  27. best wall mounted ethanol fireplace
    Bioethanol Wall Mounted Fireplace

    Unlike standard fireplaces, a bioethanol wall mounted fire doesn’t require a flue or chimney. This makes them a safer and more versatile heating solution.

    Bioethanol fireplaces are also easy to run and maintain. They include integrated security features and are easy to install

    <

  28. https://powerjuicy.com/
    Oleh karena ada broker judi online yang sajikan games komplet tentunya ini akan jadi suatu keuntungan tertentu untuk beberapa bettor. Hal ini yang membuat beberapa bettor buat melaksanakan bet lebih lepas maka bermacam kemungkinan keuntungan banyak yang bakal dicapai serta diperoleh oleh banyak bettor dengan amat ringan dalam bet itu. Beraneka keuntungan serta kelebihan yang dapat kita raih dan peroleh memang sudahlah banyak dinyatak

  29. robot vacuum cleaner cheap
    How to Choose a Robot Hoover and Mop

    Some robot mop vacuums also sweep. Some do both. Dustbins and sweeping pads must be emptied regularly on robot mops that just sweep.

    It is also important to wash regularly (or replace) mop mops for those who mop. Vacuum-proof your home and keep things such as pet toys, cords and clothes away from reach.
    <


  31. CS:GO Case Battles

    The csgo case battle s feature is a thrilling new method to play the game. It allows players to compete in a game of luck in which the winner will receive all the items unboxed. The winnings can be transferred to the player’s Steam inventory or traded.

    To participate in a CSGO battl

  32. large 4 seater leather sofa
    Invest in a 4 Seater Leather Recliner Sofa

    This modular sofa is perfect for modern interiors due to its sleek lines. It’s available in a variety of fabrics and comes in easily maneuverable boxes.

    This classic sofa from Maker & Son prioritises Britis

  33. 野猴子探險森林
    Hualien, sebuah daerah yang terletak di pesisir timur Taiwan, dikenal dengan keindahan alamnya yang mempesona, mulai dari pantai-pantai eksotis hingga pegunungan yang megah. Salah satu daya tarik utama yang menjadikan Hualien semakin terkenal adalah populasi monyet liar yang dapat ditemukan di berbagai kawasan alamnya, terutama di sekitar Taman Nasional Taroko. Dalam bahasa Mandarin, monyet liar Hualien dikenal dengan nama 花蓮野猴子

  34. best fridge brands uk
    How a Branded Refrigerator Can Help Your Brand Stand Out

    A fridge is among the most necessary kitchen appliances. A high-quality fridge will keep your food fresh for a long period of time and save energy, which can conserve you cash for many years.

    When picking a fridge, consider its capability and size. Try to find a design that will f

  35. wismabet

    Bermain slot online dapat memberikan hiburan dan peluang kemenangan yang menarik. Namun, penting untuk memilih situs yang tepercaya dan resmi agar pengalaman bermain Anda aman dan menyenangkan.

    Salah satu situs yang direkomendasikan adalah WISMABET, yang menawarkan akses ke berbagai permainan slot gacor terbaru

  36. how much is a ghost immobiliser
    The Ghost Immobiliser

    Immobilisers are a powerful tool in the fight against vehicle theft. They prevent vehicles from being started without a key fob, and are effective in stopping hotwiring and other traditional methods of vehicle theft. However, more modern methods such as key cloning and relay theft are becoming more widespread.

    <br

  37. budget robot vacuum
    Features of an Automatic Vacuum Cleaner and Mop

    A robot vacuum cleaner and mop offers an efficient cleaning solution for your floors. will keep your floors spotless while you’re away, and are perfect for floors with hard surfaces.

    The Dreame X

  38. ceri 188
    ada banyak sumber pendapatan yang dapat kita peroleh sekarang ini, serta satu diantaranya dari main permainan. barangkali dahulu tidak memikirkan jika main permainan dapat memperoleh uang. dahulu banyak yang menganggap bila main permainan cuman buang -buang uang dan waktu saja. tapi bersamaan dengan berjalannya waktu nyatanya ada beberapa rencana pengembangan di dalam permainan games online itu maka dari itu ada sejumlah game yang dibentuk buat men

  39. Saracatinib molecular weight
    Conventional anthelmintics such as albendazole could not achieve complete cure of trichinellosis till now. The antimalarial mefloquine mediates oxidative stress and disrupts lysosomal functions leading to cell death. Therefore, the aim of this work was to investigate the effect of mefloquine on experimental acute and chronic trichinellosis and to clarify the possible mechanisms of such effects. Mice we

  41. 凜與撫子的約會

    小說 – 神級特種兵王 – 神级特种兵王

    漫畫 — 凛与抚子的约会

    當下他人然鬼使神差地察看除杜明浩外場的人，就叫了一聲小子，營生由自家冪，現時這收關，還訛謬怨談得來？

    杜天鵬啃道：“媽的，是，金沙是我一度人瓜分的，那時衝下濁流，我工藝美術會救人，倏讓他們送了命，後頭我把異物撈起來埋進了支脈，杜明浩讓徒弟做的壞人壞事我是真琢磨不透，但沙漠地我辯明，爾等精練去見見。”

    “惟獨瘋話說在前頭，我住進休養所一些年，那邊有不比浮動，我不敢管教。”

    “掛牽，您說得開心，大家都直率。”

    杜天鵬把有言在先培地的地方還有埋屍的方

  42. tan leather 4 seater sofa
    Choosing a 4 Seater Grey Leather Sofa

    A 4 seater grey leather sofa is a wonderful option for any living space. It is crucial to pick the best one for your space, however. It shouldn’t be too big or it could take up too much room and make the room feel cramped.

    It shou

  44. best fridge brands uk
    What Are the very best Fridge Freezer Brands?

    When looking for the finest fridge freezer brands, you’ll desire to think about brand credibility and energy scores. Look for designs with features that can help keep your expenses down, like a top or bottom freezer or clever connection.

    R

  45. richmond french door handle repairs
    French Door Handle Replacement – Upgrade the Look of Your French Doors

    Door handles are crucial to shield your home from elements from the outside. Door handles are also a prominent feature that can set the mood for your interior design.

    The majority of French doors come with two handles: o

  46. 野猴子探險森林
    Dalam tradisi dan kepercayaan masyarakat Indonesia, alam selalu menjadi sumber inspirasi yang tak pernah habis. Salah satu makhluk yang sering kali menjadi bagian dari cerita-cerita ini adalah 野猴子 atau yang dalam bahasa Indonesia dikenal sebagai “Monyet Hutan.” Kehadiran 野猴子 di tengah hutan lebat dan liar bukan hanya sekadar simbol kebebasan, tetapi juga mengajarkan kita tentang pentingnya m

  47. best bunk bed ideas
    Best Quality Bunk Beds

    There are many options available for your children regardless of whether they’d like to add bunk beds to their bedrooms for fun or for practical reasons. You’ll also want to take into consideration the size, room, ceiling height, style and budget.

    <br

  48. over here
    Dual Fuel Range Style Cookers

    Many cooks wish for a dual-fuel range. It comes with gas stove burners that provide quick temperature control as well as an electric oven that is simple to use and reliable.

    However, you must ensure that your home is able to h

  49. best bunk beds for heavy adults
    How to Choose the Best Bunk Bed

    When it comes to decorating a shared kids bedroom, converting it into an existing playroom into the perfect space for sleepovers bunk beds are versatile and stylish. Before you shop, consider these key factors.

    A centered ladder d

  50. curved leather sofa
    L-Shaped Leather Couch – Versatile and Elegant

    L-shaped leather sofas are great for large families or those who enjoy entertaining guests. They can seat more than the traditional sofa and require less space in the room.

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

Leave a Reply

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