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.

227,839 thoughts on “Department Store Industry”

  1. click through the following website
    Where to Buy Pallets UK

    The UK pallet is the best solution for moving items in a cost-effective, secure and reliable way. This premium pallet has solid construction that helps reduce the risk of deterioration of your product and helps improve your productivity.

    Return pa

  2. Arvada Dental Excellence
    Welcome to our guide on keeping your dental implants clean in Lake Arbor, Arvada, CO! Maintaining good oral hygiene is essential for the longevity of your dental implants and overall oral health. With the proper care and regular cleaning routine, you can ensure that your implants remain strong and healthy for years to come. In this article, we will provide you with valuable tips and advic

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

    Men suffering from ADHD might experience difficulties at work and in their personal lives. They might start, but never finish their work and may have issues with their moods.

    A thorough evaluation will consider a range of aspects, including education, professional, personal r

  4. cot for bedside
    Benefits of a Bedside Baby Sleeper

    A sleeper for your baby in bed is a great method to keep your newborn close during the night to feed, comforting and bonding. It also removes the need to get out of bed to do these things.

    Some bedsides are angled towards your bed, while others have sides that drop down to make it easier for you to access your baby. These featu

  5. extreme ADHD symptoms adults
    ADHD Symptoms in Adults Quiz

    Many adults take online ADHD self-tests and rating scales to get an idea of whether they be suffering from symptoms. These ratings are useful however a physician should test an adult for ADHD.

    These tests will ask you to rate how often you

  6. wall hung bioethanol fires
    Bioethanol Wall Fire

    A bioethanol wall fire can be a gorgeous addition to any home. Not just do they create a beautiful focal point, however they also provide a good quantity of heat.

    Installation expenses are minimal, with many bio ethanol fireplaces being ‘plug an

  7. abc8
    In addition, there are also many internet gambling sites that enable you to put wagers significantly. Test their sites out, opinions before investing more money into recreation. But ensure of scam sites though, you will find yourself losing profits even before you make a bet.

    People bet on almost every sport. From Olympic events to mega senses Bowl and everythi

  8. Best kitchen remodeling Eugene OR
    The kitchen is often regarded as the heart of the home, where families gather, meals are prepared, and memories are made. However, over time, even the most beloved kitchens can start to feel outdated or cramped. Kitchen remodeling offers a unique opportunity to breathe new life into this essential space, transforming not only its aesthetic appeal but also its functionality.

  9. business intelligence advisors
    Business Intelligence Advisors with Lightray Solutions. In today’s fast-paced business environment, making informed decisions is crucial for success. Companies are inundated with vast amounts of data, yet many struggle to transform this information into actionable insights. This is where business intelligence advisors come into play. By harnessing their expertise, organizations can

  10. fridge brands uk
    Leading Makes

    Fridge freezers keep food better for longer, but how do you understand which one is right for you? This short article covers the very best fridge freezer makes and helps you discover the ideal one for your home.

    Bosch has a track record for dependability and offers appliances

  11. pure caluanie muelear oxidize for sale
    Caluanie Muelear Oxidize

    Caluanie muelear oxide is a potent chemical utilized in a variety of industrial processes. Its oxidizing properties are powerful and contribute to the degradation and disintegration of different materials. It is used in numerous manufacturing processes, including recycling of metal and paint removal.

    <br

  12. NVP-BEZ235
    collaboration.Metformin, an anti-diabetes drug, has been recently emerging as a potential “anti-aging” intervention based on its reported beneficial actions against aging in preclinical studies. Nonetheless, very few metformin studies using mice have determined metformin concentrations and many effects of metformin have been observed in preclinical studies using doses/concentrations that were not relevant to therapeutic l

  15. Badkamer betegelen
    Een goede tegelzetter uit Groningen inhuren is al mogelijk vanaf 30 euro per uur. Het is echter verstandig om meerdere offertes voor je klus op te vragen. Zo krijg je een beter beeld van de tarieven en kun je ook een keuze maken uit de aanbiedingen. Laat je hier niet alleen leiden door de prijs, maar kijk vooral naar de kwaliteit van het werk. Als je voor weinig een schots en scheve vloer of muur k

  16. französischen Bulldoggenwelpen kaufen
    Buy Franz Bulldog

    Buy Franz Bulldog is a wonderful pet for those with small living spaces or who frequently travel. They are only moderately active and can be kept in small spaces.

    The most frequent positive behavioural attribute highlighted by owners was their playfulness. T

  17. try what he says
    Bedside Crib Vs Cot

    A bedside crib, also known as a cosleeper lets your baby sleep close to you during the night. It’s important that you adhere to the official safe sleeping guidelines of the NHS and Lullaby Trust.

    Our mum testers love the SnuzPod’s breastfeeding-friendly drop side, 30-second ope

  18. auto locksmith in milton keynes
    Car Locksmith Near Milton Keynes

    If you’re in need of a car locksmith near milton keynes, please contact us! We provide mobile locksmith services throughout Milton Keynes, Buckinghamshire and beyond 24 hours a day. We offer precise on-the spot key cutting and coding services for all makes and models. We also offe

  19. linked internet site
    How Robot Hoovers Can Improve Your Home

    Many robots are equipped with the ability to map, which allows them to remember the layout of your home out. This helps them avoid bumping into furniture and other obstacles, while also cleaning more thoroughly.

    Pick a robo

  20. https://wayparkz.com/
    kebingungan cari situs slots online terunggul dengan service deposit yang kurang akan tetapi bonusnya tumpah ruah? site ini merupakan salah atu situs terunggul dengan pelayanan yang super nyaman. banyak orang yang selanjutnya masuk dan mereferensikan untuk tergabung dari sana, itu seluruhnya karena mereka mengetahui ada sejumlah keuntungan yang dapat diperoleh. apabila kita coba periksa dan lihat secara bagus jika sebenarnya ada begitu b

  21. best car locksmith in milton keynes
    Auto Locksmiths Near Milton Keynes

    Getting locked out of your car can be an incredibly terrifying experience. You require immediate help when you’ve lost your keys at the Mall or if you’ve had a key broke in the ignition when you went to Campbell Park.

    <b

  22. hier
    Als je een specifieke ruimte wilt laten betegelen, is het handig om de kosten per vierkante meter te kennen. Gemiddeld variëren deze kosten tussen de € 30,- en € 50,- per m2, afhankelijk van de eerder genoemde factoren. 076 tegelwerken werkt samen met andere tegelzetters voor diverse grote merken binnen de zakelijke markt. Verschillende soorten en maten zijn geen enkel punt. Een goede wandafwerking

  23. just click the up coming website
    What You Need to Know About Pallets of Wood for Sale

    While pallets appear to be simple items, there’s many factors involved in making them. Like any other commodity, their price is determined by the raw materials.

    One of the main f

  25. NSC 649890
    Components of the environment, such as soil and vegetation, are directly destroyed by ion-type rare earth mining processes, resulting in serious ecological problems. The destruction of land resources and ecological restoration in areas with rare earth ore have become key considerations in the sustainable development of the ion-type rare earth element industry. In this paper, ion-type rare earth ore areas in 6 counti

  26. https://juicyfluffy.com/
    untuk anda yang benar-benar pengin main perjudian slots online serta anda pun masih pemula pada permainan itu sangat diminta buat bisa mencoba ketahui lebih dahulu tutorial bermain dengan benar serta baik. menyadari tutorial main bisa jadi salah satunya trik dan tehnik yang pas yang dapat kita pakai. hal tersebut memiliki tujuan supaya selanjutnya kita dapat mendapatkan serta memperoleh keuntungan yang lebih janjikan dari permainan

  27. nagano tonic powder
    ✔️Nagano Tonic Official Website: 🔥 nagano-tonic-reviews.shop/ 🔥

    In Nagano, Japan, there’s a mystical spot referred to as the “spring of youth”, which can be a magical mannal dew that will wake the potential up connected with body -Nagano Tonic.This product has set off a revolution in bodybu

  28. buy caluanie muelear oxidize
    Where to Buy Caluanie Muelear Oxide

    What is caluanie, oxidize muelear?

    Caluanie Muelear Oxidize is a powerful chemical compound that plays a crucial role in a variety of industrial processes. It is used in the processing of metals, mineral extraction, chemical synthesis and industrial cleaning. The chemical’s

  29. try what he says
    A Wooden Bedside Cot Offers Versatility and Safety

    A bedside crib made of wood is a convenient and safe way to bring your baby closer to you while they’re sleeping. It also has the flexibility of easily converting into a bassinet or a standalone crib.

    Some cot beds are convertible and have

  30. https://plumbers-finchley-central.co.uk
    Stopping Blocked Drains: EASY STEPS to get a Smooth-Flowing House Are you sick and tired of the constant hassle of dealing with blocked drains in your home Nothing can disrupt your daily routines and trigger frustration quite like a clogged sink or overflowing toilet. But fear not! With a few basic guidelines, you can prevent those pesky blockages and appreciate a smooth-flowing home. So, get your glov

  31. annual gas safety check buckingham
    Gas Fitters in Buckingham

    Regional plumbers are accountable for a variety of jobs, from repairing leaking taps to installing new boilers. They must be completely qualified and registered with Gas Safe to work with gas.

    He sent Miss Glenroyd a copy of his gas training certifi

  32. https://yamcode.com/
    Does your room face the street, or an ugly building, or the window of your neighbor? Are you often awakened by the glare of the sun? Alternatively, do you simply want to remodel your casement to match the theme of your private haven? When you know your purpose, it will be easier to select the decorative window film to your glass windows.

    The plot is similar in most scary movies. There is usually a gro

  33. nagano lean body tonic ingredients
    ✔️Nagano Tonic Official Website: 🔥 nagano-tonic-reviews.shop/ 🔥

    In Nagano, Japan, there’s a mystical spot referred to as the “spring of youth”, which is a magical mannal dew that may wake the potential up related to body -Nagano Tonic.This

  34. My Home Page
    How to Select are a major investment. So, pick a brand that’s trustworthy and reliable. Yale Appliance interviews appliance repair pros to get their insight on the most and least dependable fridge brands.

    KitchenAid refrigerators get high marks for their thoughtful styles and large capabilities. They likewise ha

  35. best auto locksmith near milton keynes
    How to Find the Best Auto Locksmith in Milton Keynes

    You can rely on a locksmith in your vehicle for assistance, whether you’ve locked yourself out of your car after an evening at Campbell Park, or if your keys fell out of the ignition while you were out shopping. Discover a trustworthy professional by using our local business directory that only

  36. Lees hier meer
    Bij het bepalen van de hoogte van het legloon wegen diverse aspecten mee. Hou er rekening mee dat hoe lastiger het werk is, hoe hoger het legloon wordt. De klusser komt langs om uw klus uit te voeren naar tevredenheid. De volgende tips kunnen je helpen te besparen op de totaalprijs.

    Je vergelijkt de verschillende bedrijven en beslist zelf wat de beste deal is. In onderstaand tabel zie je een overzich

  37. check details
    We estimate that there were very large increases in the percentage of patients diagnosed at stages I or II between 2008-09 and 2012-13 from 32% to 44% for colorectal cancer, 19% to 25% for non-small cell lung cancer, and 28% to 31% for ovarian cancer. Geographical inequalities reduced for colorectal and ovarian cancer. Interpretation Multiple imputation is an optimal approach to reduce bias from missing data, but res

  39. Best Power BI Consulting Services
    Power BI Consulting Services with Lightray Solutions. In today’s data-driven world, companies are increasingly seeking for ways in order to harness the power of their files to make informed decisions and drive growth. Power BI, being a leading organization analytics tool, provides incredible opportunities intended for organizations to see their data and even gain valuable informat

  40. dual fuel range cooker with 13amp plug
    How to Clean a Dual Range Cooker

    A dual range cooker offers the benefits of an electric and gas stove. It is ideal for people who enjoy trying out new recipes. It offers precision baking and rapid stovetop adjustment.

    Gas cooktops permit precise temperature control for pans and po

  41. KAOS, KAOS SANTAI, KAOS MURAH
    menanti dalam waktu yang lama , karena di laundry PGSAFTY sudah memiliki jasa WASH AND DRY

    2. Apa saja fasilitas yang di bagikan 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 dengan durasi yang

  43. auto locksmiths in milton keynes
    How to Find the Best Car Locksmiths in Milton Keynes

    Locksmiths are experts in the repair and replacements of keys, locks and security systems. They also provide services like car keys cutting. They are usually open all hours of the day, and can assist you in any emergency. They can also

  44. link
    Auto Locksmith Services in Milton Keynes

    Milton Keynes is a modern town known for its innovative design as well as sprawling parks and dependable auto locksmiths. If you’ve put keys in the ignition taking a stroll through Campbell Park or locked your keys inside when shopping at

  46. best car locksmith in milton keynes
    Auto Locksmiths Near Milton Keynes

    Getting locked out of your car can be an incredibly terrifying experience. If you’ve forgotten your keys while shopping at the Mall or if your key shattered off in the ignition while visiting Campbell Park, you need urgent assistance to gain access to your vehicle.

    <br

  48. wall hung bioethanol fires
    Adding a Wall Mounted Bio Ethanol Fireplace

    Ethanol fireplaces can be installed anywhere without the need for a chimney. They also don’t produce any smoke or smells, unlike wood, coal and gas fires.

    If you are considering adding a wall mounted bio eth

  49. best double bunk beds
    Find the Best Bunk Beds

    Bunk beds are an excellent way to furnish the room of a child or guest bedroom. without spending a fortune. We talked to experts to discover the most effective solutions.

    Find wood materials that can stand up to a lot of staining and use as well as finishes that blend with other furniture. Also consider the size, style and extra features

  50. https://rentry.co/9d34nmu3
    There’s a straightforward social phenomenon researchers located in online interactions. They’ve found people often change their standards of politeness and diplomacy any conversation is happening online, versus face-to-face.

    Alternatively, take a long hot bath or stay on the shower of a while certain the pubic area turns into a lot of

Leave a Reply

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