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.

397,555 thoughts on “Department Store Industry”

  2. Tangerine tree
    Mango timber could be propagated from seeds, although grafting is the preferred technique for ensuring true-to-type fruit production. Seed-grown trees may take 6-10 years to bear fruit, whereas grafted trees usually produce fruit inside 3-6 years (from grafting time). Grafting additionally permits for the combination of fascinating rootstocks with particular mango varieties, enhancing illness

  3. Gas safety certificate buckingham
    Boiler Repair Works in Buckingham

    If your boiler isn’t heating your home, it may require a repair. This problem might be triggered by a range of factors, including damaged parts and air blockages.

    It’s important to arrange regular upkeep check outs for your boiler. These can assist identify problems early and prevent significant break

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

    When you look at the revolution of healthy life, greater numbers of individuals are desperate to have the figure that is ideal leading a healthy lifestyle.Faced by having a number of alternatives, Nagano Tonic is similar to a clear stream, and contains develop into a star product in the weight loss field with its unique formula

  6. business and technology consulting
    Lightray Solutions Business and Technology ConsultantsBusiness and Technology Consulting using Lightray Solutions. Within an increasingly sophisticated and rapidly changing marketplace, companies are faced with myriad issues that require modern solutions and a strategic approach. The particular intersection of technological innovation and business method has never recently been more crucial. Companies th

  9. best bedside cot uk
    Amazon Bedside Cot Review

    A bedside cot can be described as an infant bassinet that can be attached to the side of your bed to allow you to get up and down easily during the night. This one can be adjusted in height and comes with a travel bag. It was shortlisted for the 2021 Mother&Baby A

  10. french door lock repairs
    Replace the Glass in a French Door Without Buying a New Door

    French doors can be stunning additions to any home. However, as with any windows or doors, they can be damaged. It is possible to repair the glass on a French door’s glass without having to buy another one.

    Double pane (also known by the nam

  12. cong ty ban mai
    Trong lĩnh vực sửa chữa ô tô, việc lựa chọn thiết bị phù hợp và đảm bảo chất lượng là yếu tố quan trọng để tối ưu hóa hiệu quả làm việc. Dưới đây là những bí quyết giúp bạn lựa chọn thiết bị sửa chữa ô tô bền, chất lượng như mong muốn.

    1. Xác định nhu cầu sử dụng

    Trước khi mua bất kỳ thiết bị nào, bạn cần xác định rõ

  14. Ga verder
    Er zijn in Nederland veel tegelzetters te vinden waarvan elk ook nog zijn eigen prijs hanteert. Wij begrijpen dat u niet goed weet welke het meeste geschikt en betrouwbaar zijn. Via ons kunt u gratis de beste bedrijven met elkaar vergelijken.

    Laat het ons weten en we verbinden u snel met de beste leveranciers. Laat uw wanden in Huizen bet

  15. ghost autowatch immobiliser
    The Immobiliser Ghost and Vehicle Tracker Reduce the Risk of Car Theft

    Theft of vehicles is a problem that continues to increase as thieves continue to develop their strategies. You can lower the chance that your vehicle could be taken away by implementing additional security measures such as an immo

  16. https://xxh5gamebbs.uwan.com/home.php?mod=space&uid=731077
    Choose metrics that are easy to understand and provide insight into how your SEO strategy is performing and how you can further optimize it. By analyzing which of your site pages have high exit rates, you can make improvements and optimize pages to keep users from leaving them. Organic search traffic is an important SEO metric to track because it helps you

  17. thor311
    permainan slots online classic itu jadi salah satunya model permainan yang benar-benar menarik untuk dipermainkan. dengan semuanya kelebihan yang ada, permainan slots online classic ini dapat menjadi salah satunya alternatif terbaik buat banyak pemain dan betaruh. untuk raih kemenangan di permainan ini, betaruh dapat gunakan cara-cara. berikut beberapa tips raih kemenangan di permainan slots online classic.

  18. website
    Using PVC bathroom wall panels is an excellent method a homeowner can enhance the appearance of the bathroom. Many people use conventional methods such as painting, wall paper and also tiles to update their bathrooms. However, a house owner may also start using these panels to embellish along with increase the durability in the walls. These are simple panels manufactured from different materials, with common ones being metal and plastic

  20. https://rowretry.com/
    waktu ini benar-benar ada banyak teknik dan taktik slots online yang sejauh ini telah dipakai oleh banyaknya orang untuk dapat mendapat kemenangan. walau demikian dari banyak trick itu tak segalanya bagus serta tidak seluruhnya dapat dihandalkan. kadangkala ada diantaranya trik yang buruk dan bikin rugi apabila kita coba pakainya. oleh karenanya kita harus belajar banyak perihal bervariasi trick yang amat tepat yang dapat kita pakai. bil

  21. official source
    Bedside Cot 6 Months Plus

    Bedside sleepers allow you to keep your baby close in the same room as you without the risk of sharing a bed, which is associated with a higher chance of being suffocated. They’re a great choice for babies.

    Look for models that have an adjustable height that will fit perfe

  22. best bedside cot for newborn
    With Wheels

    A bedside crib is a cot with a bassinet style that can be placed next to your bed for fuss-free feeding at night or soothing back to sleep. They’re also great for mums recovering from the c-section.

    MFM home testers were awed

  23. cong ty ban mai
    Công ty Bán Mai từ lâu đã được biết đến là một trong những nhà phân phối thiết bị sửa chữa ô tô hàng đầu tại Việt Nam. Với cam kết cung cấp những sản phẩm chất lượng, dịch vụ hoàn hảo và sự đổi mới không ngừng, Bán Mai đã khẳng định được vị thế của mình trong ngành công nghiệp thiết bị sửa chữa ô tô. Cùng với sự phát triển mạnh mẽ của ngành ô tô tại Việt Nam, Công ty Bán Mai lu

  25. thor311
    beberapa syarat dalam download terapan slots online pkv permainan. sekarang ini banyak model perjudian online yang acapkali jadi sebuah alternatif menarik buat beberapa orang yang senang bermain judi online. semua permainan itu tentulah memberinya kehebohan masing-masing hingga tak memberinya effect jemu. kalian pastinya memerlukan begitu banyak model permainan karena tak kan bahagia cuman dengan 1 permainan saja.

    sekarang begitu ba

  27. https://www.outlived.co.uk/author/radarcoke4/
    Trong thời đại công nghệ số phát triển mạnh mẽ như hiện nay, livestream đã trở thành một công cụ đặc biệt quan trọng cho các doanh nghiệp trong việc gia tăng tương tác với khách hàng và xây dựng thương hiệu. Một trong những nền tảng nổi bật và đáng chú ý trong lĩnh vực này chính là SOCOLIVE. Với khả năng cung cấp các dịch vụ livestream chất lượng cao, SOCOLIVE đang trở thành lựa chọn hàn

  29. check here
    Protecting from Damage

    Fixtures and fittings in the house or place of business may necessitate protection from damage but this can be something which is additionally applicable for walls as well as a wall protector must be sought to make sure this.

    Wall protectors possess a numerous benefits and may provide in a very whole host of situati

  30. ghost 2 immobiliser review
    Installing Ghost Immobiliser

    The Ghost immobiliser is different from traditional security systems due to the fact that it connects directly to your vehicle’s ECU/CAN data network. This makes it very difficult for thieves to bypass or duplicate the key fob’s signal.

    Befor

  31. landlord gas safety certificate buckingham
    Commercial Heating Engineer in Buckingham

    If your main heating unit breaks down, it is essential that you call in an expert as quickly as possible. The Gas Safe registered engineers we can link you with will treat your home as though it were their own, and will work at a time that suits you. They’ll intend to finis

  33. visit homepage
    Are you looking for a straightforward to put in green means of protecting your own home through the elements? Of course you happen to be. One choice is external timber cladding. By installing external timber cladding in your house you can create a beautiful exterior that can avoid the erosion and decay that constant contact with weather and pollution. Contrary to vinyl siding containing issues of trappin

  34. ghost immobilise
    Car Ghost Immobiliser

    Ghost Immobiliser The Ghost Immobiliser, a sophisticated system, prevents your vehicle from starting without a unique code input using buttons that are already in place. The device is unnoticeable to thieves and runs quietly.

    It can be helpful in preventing hotwiring, as well as newe

  35. pallets of wood for sale​
    New Wood Pallet For Sale

    Wood pallets made from wood are now a standard packaging option for the transport and logistics sector. They’re also a favorite for industries that require durable shipping materials such as energy, oil, and gas.

    If you are considering buying new wooden pallets, there

  36. official source
    Bedside Crib and Travel Cot

    Bedside cribs are a bassinet-style cot that fixes to the side of your bed. Some have an end that can be lowered for easy access, while others have an inclined design that is perfect for reflux babies.

    MFM test subject Georgina said that this crib was easy to assemble and

  37. https://globalider.com/
    Trong những năm gần đây, thị trường giải trí trực tuyến tại châu Á đã có sự bùng nổ mạnh mẽ với sự xuất hiện của nhiều nền tảng khác nhau. Giữa muôn vàn lựa chọn, 7Ball nổi bật lên như một trong những nền tảng online đáng chơi nhất hiện nay. Với giao diện thân thiện cùng hàng loạt trò chơi đa dạng, 7Ball không chỉ thu hút người chơi mà còn tạo ra một cộng đồng gắn kết và sôi động.

    <

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

    Into the revolution of healthy life, increasing numbers of people are desperate to have the figure this is certainly ideal a healthy lifestyle.Faced by having an amount of alternatives, Nagano Tonic is much like a definite stream, and contains develop into a star product in the weight loss field with its unique formula and signi

  39. french door handle repairs yeovil
    Fixing French Door Locking Mechanism Replacement

    When you lock your french doors, you need to ensure they’re secure. You can accomplish this by selecting a lock that will ensure your door is secure without obstructing airflow or affecting the aesthetic look of your home.

    French door locks usual

  41. media wall bioethanol fireplace
    Wall Hung Ethanol Fireplace

    If you’re trying to find a modern-day, clean-burning fireplace solution, consider a wall hung ethanol fire. These beautiful pieces hang on the wall like a picture and produce lively flames and real heat.

    Ethanol fires are also simple to install. They do not need a flue or chimney and can be set up in

  42. try here
    How to Pick the very best Fridge Brands

    Fridges are a significant financial investment. So, select a brand that’s dependable and reputable. Yale Appliance interviews home appliance repair pros to get their insight on the most and least reliable fridge brands.

    KitchenAid refrigerators get high marks for their thoughtful designs and large capabilities. They likewise have fin

  43. More inspiring ideas
    Gas Safety in Buckingham

    Carbon monoxide gas poisoning is an extremely severe health threat that can kill in just hours. It is necessary to have routine gas safety checks conducted by an engineer.

    Landlords are required to have their prop

  44. trang chủ Nổ hũ đổi thưởng

    Trong thế giới game online hiện đại, Nổ hũ đổi thưởng đang trở thành một trong những trò chơi thu hút sự chú ý mạnh mẽ từ cộng đồng game thủ. Với cơ hội trúng thưởng hấp dẫn và những trải nghiệm giải trí thú vị, trò chơi này không chỉ đơn thuần là một hình thức chơi game mà còn là một sân chơi đầy hứa hẹn cho những ai đang tìm kiếm vận may và niềm vui.

  46. purchase used pallets
    Where to Find Used Pallets for Sale

    Based on your budget and your environmental goals, you could buy or sell used pallets. You will need an auto that can carry a large number pallets made of wood.

    Pallets can be found close to construction sites. But, it is es

  47. adult ADHD symptoms in men
    How to Recognize Extreme ADHD Symptoms

    People with ADHD often feel slighted and not supported. This can lead them to believe their challenges are caused by mental health issues like anxiety or depression, instead of ADHD.

    The signs o

  48. africa happy birthday
    Easily customize your birthday greeting from Africa video on our website. Choose unique themes and backgrounds to create unforgettable Africa happy birthday videos for your friends and family. Elevate your celebrations with a touch of unique African culture. , guaranteed.

  49. cloud cannabis
    Marijuana has turn into a major subject of discussion throughout recent years, using increasing legalization plus acceptance around the world. From the wondering beginner for the veteran grower, there is a great deal to learn about marijuana plants, clones, and cannabis plant seeds. In this article, we will jump into these topics and explore the particular role of firms like Aurora Marijuana, as well while how to get the correct cannabis go s

  50. best car locksmiths milton keynes
    The Best Car Locksmith Milton Keynes

    Auto locksmiths are experts in fixing issues with car locks. They are highly skilled and able to solve a variety of problems. They also have a lot of experience. They are available 24 hours per day and can offer a variety of services.

    No matter if you’re enjoying your

Leave a Reply

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