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.

382,013 thoughts on “Department Store Industry”

  1. private certifier Campbelltown
    A building certifier is a qualified professional responsible for making sure construction projects meet all legal, safety, and regulatory standards. Acting as an intermediary between builders, developers, and local authorities, building certifiers play a vital role within the construction process. Their expertise means that structures are secure, compliant, and buil

  2. https://buketik39.ru/user/TheRankingForge/
    The internal search engine is most frequently used by visitors that want to quickly find specific brands, products, or content on your site. Considering that Google Analytics is the product of the very search engine that visitors use before opening your website, it can capture some unique insights and data that other SEO tools can’t. Similar to the SERP analysis, pay attention to the connection b

  3. media wall bioethanol fireplace
    A Wall Mounted Bioethanol Fire

    A wall mounted bioethanol fire is an excellent method to add an elegant and safe feature to your home. It is easy to install and can be hung at eye level or higher for a focal point. It likewise does not require a chimney or ventilation.

    Before setting up an ethanol fireplace, it

  4. Hi there! Do you know if they make any plugins to safeguard against hackers?
    I’m kinda paranoid about losing everything I’ve worked
    hard on. Any tips?

    Also visit my web page :: Live Draw SDY

  7. mouse click the following web page
    How to Pick the very best Fridge Brand in the UK

    Fridge freezers are some of the most popular white products in UK homes. They range in rate from less than 200 GBP to a couple of thousand GBP. Powerpoint Wallesey carries top-quality home devices, consisting of fridge freezers from leading brands. These consist of Beko, Hotpo

  8. Lightray Solutions Business and Technology Consulting
    Business and Technology Consulting with Lightray Solutions. Throughout today’s fast-paced in addition to ever-evolving marketplace, typically the fusion of business strategy and technology is becoming increasingly critical for organizations striving to achieve eco friendly success. The difficulties of navigating this particular landscape are compelling companies to seek out guidance that l

  9. best bunk bed with trundle
    The Best Bunk Beds For Teens

    If you’re looking for bunk beds that grow with your child take a look at this collaboration between PB Teen and West Elm. The beds are constructed with solid spruce wood and feature a full-length guardrail on top, which helps children feel secure and protected.

    This twin-overtwin floor model has more tha

  12. vegan leather couch
    Faux Leather Couch – A Stylish Alternative to Genuine Leather

    Faux leather provides the look like real leather but without the cost. Faux leather is not indestructible and will wear out over time if you use it a lot.

    There are a variety of ways to determine if the sofa is real or fake. You can look at price, a label, and a test of touch to determine the material

  13. hoki311
    Judi memang suatu permainan yang terlarang agama dan aturan di Indonesia dapat terserang sangsi tertentu buat yang memainkan. Tetapi, dapat mendapati banyak pejudi yang tersebarkan di semuanya Indonesia masih memainkan. Sebab memang bermain judi sangatlah membahagiakan serta dapat mendatangkan uang secara gampang. Apa lagi kian maju technologi yang mempunyai pengaruh ke dunia permainan judi, ialah ada judi online. Nach, buat pelaku judi hanya butuh

  14. bioethanol wall mounted fires
    A Small Wall Mounted Bio Ethanol Fireplace Creates a Stunning Focal Point in Living Areas

    A little wall mounted bio ethanol fireplace produces a sensational centerpiece in living locations. These fireplaces do not need a flue and can be placed anywhere in the home. They also provide a good amount of heat.

  15. get more info
    Auto Vacuum and Mop Combos

    The top auto vacuum and mop are designed to allow hands-free cleaning. They’re compatible with smart home systems, can set scheduling through apps, and have virtual boundaries. Some, like the eufy X2 Omni, even dry and wash mop pads after using them.

    These models are an exc

  16. top online casino in bangladesh, new online casino, online gaming in Bangladesh, best online casino in Bangladesh, online cricket betting, best slots, best fishing games, global poker casino, best live casino games, bengalwin lottery, world sports betting
    Online gaming is on the rise in Bangladesh, and **Bengalwin** stands tall as a premier destination for casino lovers and sports betting enthusiasts. Known as **বেঙ্গল উইন**, the pla

  17. Welpen Französische Bulldogge Kaufen
    Buy bulldogge kaufen That Are Smart and Affectionate

    French bulldogs are smart and affectionate dogs that can adapt well to many types of homes. They are very entertaining and enjoy playing! They are a breed who requires a daily routine to stay healthy and happy.

    When deciding where to purchase your french bulldog puppy, look for a

  18. best dual range cookers
    Upgrade Your Kitchen With Cheap Dual Fuel Range Cookers

    Upgrade your kitchen with a dual range cooker with fuel that has the ability of a gas cooktop coupled with a precise electric oven. Explore a variety of finishes and widths to meet your space and cooking needs.

    In recent years the Go

  21. ADHD symptoms in adult men
    Symptoms of ADHD in Adults Women

    Dr. Frank says that the symptoms of ADHD in women who are typically more difficult to identify than in men, because women have coping mechanisms to hide their symptoms. Fortunately, lifestyle support and medication can help them improve the

  22. Lightray Solutions Business and Technology Consulting
    Business and Technology Consulting with Lightray Solutions. Throughout today’s fast-paced in addition to ever-evolving marketplace, typically the fusion of business strategy and technology is becoming increasingly critical for organizations striving to achieve eco friendly success. The difficulties of navigating this particular landscape are compelling companies to seek out guidance that l

  23. hoki311
    Perjudian online kartu adalah permainan sangat menarik serta tenar di dunia. Juga game judi lebih sama juga diketahui dengan taruhan judi kartu, maka alamiah saja kalau taruhan ini demikian terkenal bukan cuma di banyak negara saja bahkan di dunia lantas telah mengenalinya dengan baik sekali.

    Banyak bettor demikian ingin untuk main judi kartu di tiap ada peluang. Lantaran itu, bila pemain mau tah

  24. media wall bioethanol fireplace
    How to Choose the very best Wall Mounted Bioethanol Fires Indoors

    Ethanol wall fireplaces are a fantastic way to enhance your home. They are easy to install and can be recessed or mounted onto the wall.

    Nevertheless, before you acquire a bio ethanol fireplace

  26. helpful site
    Take a hunt at the executive exactly where there is he has worked. He or she is usually engaged in a single of the social media platforms the actual information is generally not difficult to find. Search enterprise records observe if he’s been a consumer before. That they were, definitely will know how to leverage that experience.

    Am

  27. french door repairs worthing
    Install a French Door Lock to Prevent Burglars From Getting Through

    French doors look stunning on any home but they can be an invitation to burglars if not properly secured. Install a lock on your door to ensure your family’s safety and your belongings secure.

    If your French door locks aren’t work

  28. 消費税改革
    Asia stands at the crossroads in the economical journey, grappling together with the challenge of achieving a fragile balance between growth and stability. While the world’s third-largest economy, Japan features long been recognized by its resilience, but recent worldwide uncertainties have positioned immense pressure upon its fiscal in addition to monetary frameworks. Typically the

  29. cong ty ban mai
    Trong ngành sửa chữa ô tô đang ngày càng phát triển tại Việt Nam, việc lựa chọn đơn vị cung cấp thiết bị uy tín đóng vai trò quan trọng đối với các xưởng dịch vụ. Công Ty Ban Mai đã khẳng định vị thế là nhà cung cấp thiết bị sửa chữa ô tô hàng đầu, mang đến giải pháp đồng bộ và hiệu quả cho khách hàng trên khắp cả nước.

    Sự Khác Biệt Của Công Ty Ban Mai

  30. thor311
    ada banyak sumber pemasukan yang dapat kita temukan sekarang ini, dan satu diantaranya dari main permainan. kemungkinan dahulu tidak memikirkan bila main game dapat memperoleh uang. dahulu banyak yang memiliki anggapan jika main game cuman buang -buang uang dan waktu saja. tapi bersamaan dengan berjalannya waktu nyatanya ada beberapa prinsip pengembangan di dalam permainan games online itu hingga ada sekian banyak permainan yang dibuat untuk memper

  31. リスク管理
    The recent depreciation in the yen has caused considerable debate amongst economists and policymakers, highlighting its twin impact on Japan’s economy. As typically the currency weakens towards major global stock markets, Japan’s export sector finds itself inside a favorable place, enabling goods being sold overseas with more competitive costs. This trend not merely boosts demand for Japanese products yet also plays the crucial role in

  32. commercial heating engineer buckingham
    Why Landlords Need a Gas Safety Check

    Landlords are required by law to have their gas devices and pipework examined yearly. The examination is conducted by a certified expert and guarantees the safety of renters.

    In addition to ensuring compliance with l

  33. casino extreme no deposit bonus
    Fiber plays a considerable role within the digestive system health of pigs by influencing their gut function, nutritional absorption, and general gastrointestinal health. Whilst pigs are mainly monogastric animals (similar to humans), their very own digestive systems enjoy the right amount and even kind of fiber throughout their diet. The particular impact of fibers on pig food digestion depe

  35. ADHD symptoms in adult men
    ADHD Symptoms in Adult Men

    Men who suffer from ADHD might experience difficulties both at work and in their private lives. They might start, but rarely finish projects and may have issues with their moods.

    A thorough evaluation will consider many factors, such as a perso

  36. emergency gas engineer buckingham
    Gas Safe Engineer in Buckingham

    A gas safe engineer in buckingham is a tradesperson who must be registered with the Gas Safe Register to legally deal with gas appliances. They are trained and certified to work with piped natural gas and liquefied petroleum gas (LP

  37. https://nagano-tonic-reviews.shop/
    ✔️Nagano Tonic Official Website: 🔥 🔥

    In the current fast life that is-paced more and more people are desperate to own healthier weight and perfect figure.However, when confronted by a number of diet items available on the market, choosing really a effective item has converted into an issue for a lot of people.The emergence of Nagano Tonic undertake a fresh solution

  39. Going Listed here
    Transitioning From Moses Basket to Co-Sleeper

    A bedside crib, also known as a co-sleeper, lets your baby sleep safely close to your bed. Many come with extra features, such as music and rockers.

    The Shnuggle Air comes with a cot mattress and conversion kit, which transforms your child’s secure, cosy sleeping space into a chic cot. This innovative feature was w


  40. Caluanie Muelear Oxidize

    Caluanie Muelear Oxidize is a powerful chemistry compound that offers a number advantages. It is safe and efficient and can be used for a wide range of industrial applications. It is also easy to store and transport making it an ideal choice for businesses that need to move products from one place to another.

    Caluanie Muelear Oxidize

  41. https://nagano-tonic-reviews.shop/
    ✔️Nagano Tonic Official Website: 🔥 🔥

    When speaing frankly about bodybuilding and weight reduction, a name often starred in the field wide web -Nagano Tonic.What will be the secret for the magical dew from Nagano, Japan, can countless beauty fans global crazy?Let’s have the uniqueness by using this product together.

    1. Explore

  42. 日本の産業政策
    The particular recent depreciation of the yen offers stirred a complex interplay in Japan’s economic climate, creating both challenges and opportunities. Since the yen weakens against major values, the export business finds itself in a more competitive position, making the most of enhanced pricing positive aspects in international markets. This shift is essential for Japan, a nation whose economic vitality largely depends on i

  43. nagano tonic reviews and complaints reddit
    ✔️Nagano Tonic Official Website: 🔥 nagano-tonic-reviews.shop/ 🔥

    When speaing frankly about bodybuilding and fat loss, a name often starred on the planet wide web -Nagano Tonic.What will be the secret regarding the magical dew from Nagano, Japan, can countless beauty fans global crazy?Let’s obtain the uniqueness utilizing this product together.

  44. brands of fridge
    How to Choose Good Refrigerator Brands

    Fridges can be a huge purchase. You’ll wish to be confident that the brand you pick will last a very long time, with minimal repairs and low electrical energy usage.

    This is why it’s valuable to do your research before striki

  45. ghost immobilise
    Autowatch Ghost Immobiliser

    Ghost Immobiliser is a renowned product that protects your vehicle from key-cloning hacking and theft. This TASSA-verified system is undetectable by thieves and blocks your vehicle from being started.

    This device is silen

  47. Paid online surveys in UK
    There are multitudes of people struggling in this economy, and many would love to work for themselves. Sadly, they have no idea how. Making money on the Internet is a solution to this problem. This article is going to teach you the basics of making money online.

    Figure out your niche before making money online. Do you love to write in your spare

Leave a Reply

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