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.

226,815 thoughts on “Department Store Industry”

  1. rainier beer
    , a brand with deep origins in the Pacific Northwest, has transcended its standing as a cherished drink to end up being a renowned cultural symbol. Understood for its rich history and its association with the scenic landscapes of Washington state, Rainier Beer has inspired a line of garments that’s catching the hearts of beer fanatics and style-conscious individuals alike. But what makes Rainier Beer apparel so enticing, and why has it gaine

  2. simply click the up coming web site
    Best Robot Vacuums

    The best robot vacuums excel in removing dust, pet hair and other particles from carpet and hard floors. However, they leave a lot behind on baseboards and furniture.

    Some models can be operated by a smartphone application however others require physical remote

  3. Commissioner Of Oaths Saskatoon
    If you have run into legal troubles, you need to know how to pick a lawyer for your distinct situation. Not every legal issue is the same, and different types of lawyers are needed to handle a variety of unique situations. This article will share s

  4. bachelorette party t-shirts
    In today’s competitive market, establishing a strong connection with your customers is essential. One innovative way to create that bond is through the use of custom t-shirts. These personalized garments not only serve as a canvas for creative expression but also allow your brand to stand out in a crowded landscape. Imagine your loyal customers proudly

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

    In Nagano in Japan, there’s a spot that is mystical since the “spring of youth”.Here is a magical nectar called Nagano Tonic, that will be quietly changing the medical health insurance and breathtaking journey of countless people around the world.What could be the secret with this specific product?let us reveal its mystery toget

  6. fabric three piece suites

    There’s nothing rather like unwinding in a fabric 3 seater recliner sofa. Designed to assist you discover your best reclining position, they combine convenience and design.

    To operate, they normally utilize a manual system or a power recliner chair choice which needs electrical power to work

  7. best automatic vacuum
    Robot Vacuum Reviews

    While robot vacuums reduce the need for periodic full-blown sweeping, they don’t replace traditional plug-in models. Maintaining them in good shape requires emptying the dust bin following every cleaning session, wiping the cameras and sensors occasionally and changing filters and side

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

    In Nagano, Japan, there was a mysterious place called the “spring of youth”, which can be really a magical mannal dew that could wake the potential up in connection with human body -Nagano Tonic.this system has set off a revolution in bodybuilding and dropping pounds globally, also it has end up being the gospel of countless peo

  10. combien coute un teste de grossesse
    Vous pourrez également en réaliser bizarre test à l’égard de grossesse ou avérés examens complémentaires suivant votre condition.”

    Un agrandissement insuffisante suivie d’bizarre réduction du relation peut indiquer unique grossesse non évolutive, telle lequel’unique fausse couche imminente.

    Ne buvez enjambée exagérément avant d’réaliser ce te

  11. Commissioner Of Oaths Saskatoon
    Make sure that you have a decent interaction with any attorney before you invest any money. You may have to spend a good amount of time with your lawyer, so it is important that you choose one that you don’t have any issues working with. Take the time to sit down with any potential attorneys and see if you get a good feel for them.

    Ask your friends and fa

  12. 社会保障制度
    Japan detects itself at the crucial crossroads as the nation grapples with the delicate balancing act of pursuing economic development while ensuring balance. The Japanese economy, when a global leader, now encounters an array of challenges which include an aging populace, stagnant labor marketplace, and persistent deflationary pressures. Recently, policymakers include been tasked together with creating a good envi

  13. click through the following page
    How to Find the Best Car Locksmiths in Milton Keynes

    A trusted locksmith can help keep your vehicle, home and office secure. They are trained to handle a wide range of issues, including key duplication, repair and installation of locks.

    They can also giv

  14. duel fuel cookers
    Dual Fuel Range Cookers

    This 30-inch dual fuel range by Zline includes five burners as well as an electric oven. It’s sleek and simple, which fits in with many aesthetics.

    Handles and knobs are made of stainless steel that is resistant to fingerprints and easy to clean. Baker

  15. best freezer brands
    The Very Best Fridge Brands

    The finest fridge brand names are roomy and energy efficient, keeping your food fresh for a very long time. They also feature helpful features like smart tech and return alternatives.

    LG keeps up with brand-new device patterns, providing Wi-Fi-enabled fridges and elegant ice designs. The brand likewise ranks highly in Yale Applian

  16. https://howlingbone.com/
    penyeleksian situs slots online terhebat itu dapat berdasar pada beberapa hal sekalian. salah satunya yang dapat jadi dasar ialah penawaran bonus yang ada pada dalam sitsnya. maka lihat terus tawara bonus yang ada di dalam sebuah web judi slots oline. bagaimana caranya pilih berdasarkan bonus? berikut yakni petunjuk memutuskan situs slots online dari penawaran bonus yang ada.

    putuskan yang bonusnya banyak

    <b

  17. 不確実性と投資市場
    In current years, the Bank of Japan offers adopted a range of unconventional budgetary policies aimed at revitalizing the nation’s economy. These initiatives, including quantitative reducing and yield competition control, have profoundly influenced financial marketplaces, specially the stock market. As investors tightly monitor the key bank’s actions, comprehending how these guidelines shape market characteristi


  18. Caluanie Muelear Oxidize

    Caluanie muelear oxide is a potent chemical used in many industrial processes. Its powerful oxidizing properties help in the disintegration of a variety of materials. It is utilized in a variety of manufacturing processes like recycling metal and paint removal.

    The process of

  20. commercial heating engineer buckingham
    Landlord Gas Safety Certificate in Buckingham

    As a landlord, you have legal duties to make sure that gas home appliances and pipeline work are safe. This need to be done every year by a certified Gas Safe engineer and a gas safety certificate (CP12) will be released.

    <br

  22. wall mounted ethanol fireplace
    Wall Mounted Fireplace Bioethanol

    Wall mounted fireplace bioethanol are easy to set up and can be a spectacular centrepiece in any room. They produce no smoke and do not require a chimney making them an excellent alternative to solid fuel fires.

    When installing an ethanol fireplace to a wall, it’s crucial to measure the height o

  23. robot vacuum cleaner best
    Robot Vacuum Cleaner on Sale

    A robot vacuum cleaner is a great option to set it and forget it for a tidy home. They are ideal for removing pet fur, crumbs and dust from floors made of hard materials such as tile or wood and low pile carpets.

    Expect models

  24. Commissioner Of Oaths Saskatoon
    Make sure to find out who all will be involved with helping to work on your case. What sort of experience do they have? Some may have years of experience, whereas others may be fresh out of law school. How much time is your lawyer anticipating on devoting to your case?

    Stay as organized as possible when you are working with a lawyer. This means that you should have all


  27. Where to Buy Caluanie Muelear Oxide

    What is caluanie muelear’s oxidize?

    buy caluanie muelear oxidize australia is a powerful chemical compound that plays a significant role in many industrial processes. It is used in metal processing, mineral extraction, chemical synthesis and industrial cleaning. This chemical’s powerful oxidizing properties make it ideal for

  28. breathable t-shirts
    In today’s competitive market, businesses are constantly seeking innovative ways to connect with their customers and stand out from the crowd. One effective method that has gained popularity is the use of custom t-shirts. These personalized tees offer not only a versatile fashion sta

  29. High-Quality Factory-Made Pallets
    Why Choose ?

    The quality of pallets can have a significant impact in warehouse operations. Good quality pallets lower the chance of damage to products and workplace accidents, and improve efficiency and effectiveness in the handling of materials.

    Find a manufacturer with an established reputation and a successful track record.

  30. 投資家向けリターン
    Japan stands in a pivotal crossroads in the economic panorama, in which the pursuit associated with growth must be carefully balanced with all the want for stability. Since the third-largest economy on the globe, Japan is grappling with numerous challenges, including an getting older population, fluctuating pumping rates, and a new complex labor industry. These factors create an unique environment in which policies must get crafte

  31. where to get pallets​
    What You Should Know About Used Pallets For Sale

    If you’re interested in the second hand pallet business you will need an automobile that can carry a lot wood. Standard pallets measure 48″x40″, which means that you’ll need an automobile or truck with high sides.

    Larg

  32. thor311
    Bervariasi koleksi permainan taruhan judi online yang ada memanglah begitu banyak serta satu diantaranya juga tawarkan keuntungan yang besar sekali ketimbang anda memainkan permainan taruhan secara off-line. Satu diantaranya yang membuat permainan ini termashyur serta banyak disenangi salah satunya yakni sebab memang memungkinnya banyak pemain untuk dapat memainkan permainan lewat cara online dengan akses yang ringan memanfaatkan banyak alternatif fea

  33. thor 311
    Dalam taruhan judi online ada sejumlah keuntungan dari kemenangan yang kamu temukan. Salah satunya keuntungan mengambil sumber dari bonus jekpot. Bonus yang satu berikut satu diantara kelompok bonus yang sangat prospektif sekali. Banyak bettor dapat mendapat bonus itu dengan enteng kalau mengerti perihal ketentuanya.

    Dalam agen sah sediakan bermacam bonus yang luar biasa sekali terhitung jekpot. Bonus ini sering kali jadi satu d

  34. FILTER AIR, FILTER AQUARIUM, FILTER IKAN
    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 dur

  35. trucker hat
    , a brand name with deep origins in the Pacific Northwest, has actually transcended its condition as a cherished drink to become a famous social symbol. Known for its rich history and its organization with the beautiful landscapes of Washington state, Rainier Beer has actually influenced a line of apparel that’s recording the hearts of beer fanatics and styl

  36. gas safety check buckingham
    Central Heating Engineers in Buckingham

    Doveguard Construction Ltd

    . A malfunctioning main heating unit can not just cause hassle, it can likewise present a threat of carbon monoxide poisoning to your household. We can connect you with regional Buckingham main he

  37. Read the Full Post
    Top Robot Vacuums and Mop Combos

    While robots aren’t able to replace a traditional vacuum in picking up dirt-in particles like metal screws and chunks of orzo pasta, they are excellent in sweeping dust, crumbs and pet hair. The best models have intelligent navigation systems, which helps them avoid

  38. gas safety check buckingham
    Gas Safety Certificates in Buckingham

    There is a lot of duty that comes with owning a home, and acquiring a gas safety certificate is simply one part of it. This certificate is a legal requirement for landlords to make sure that their occupants are safe and protected.

    Landlords must have all gas appliances, flues and pipework examined by a Gas Safe s

  39. click through the following website page
    Ecovacs Deebot – The Best Automatic Vacuum Robot

    Ecovacs Deebot is one of the most efficient robots that we have test. It can be used for vacuuming and mopping. It also has an auto-emptying bin as well as efficient navigation.

    It scored a high navigation score in CR’s assessments

  40. unisex
    Rainier Beer, a brand name with deep origins in the Pacific Northwest, has actually transcended its condition as a beloved drink to end up being a famous social icon. Understood for its abundant background and its organization with the picturesque landscapes of Washington state, Rainier Beer has actually inspired a line of garments that’s catching the hearts of beer lovers and style-conscious individuals alike. But what makes Rainier Beer apparel so a

  41. bedside travel crib
    The Best Bedside Cot For Newborns

    A bedside crib is a bassinet-style crib that attaches to the mattress’s side. This makes it easy to reach your baby at night to feed them without fuss. These are suitable for babies from birth to six months old.

    Official safe sleeping guidelines from both the NHS and The Lullaby Trust recommends newborns sleep in a separate crib

  42. best car locksmith milton keynes
    Car Locksmith in Milton Keynes

    The evening before we were contacted to replace the lock since a previous owner had not returned the spare key. We gained entry using non-destructive techniques and discussed new options for locking. The customer decided to install high security snap-safe euro cylinder locks fitted

  43. 不確実性と投資市場
    The particular recent decline with the yen has caused intense debate concerning its implications regarding Japan’s economy. While a weaker yen enhances the competition of Japanese export products around the international stage, it simultaneously troubles consumers and companies with rising import prices. This dual impact underscores the particular complexity of currency fluctuations and their very own significan

  45. Learn more about asset financing options
    Starting a fresh business is an exhilarating journey filled together with opportunities and issues. Probably the most crucial aspects of launching and even scaling a startup company is securing the necessary resources to develop. For many business people, the upfront charges of kit, technology, in addition to other essential assets can be daunting. This is wherever asset finance arrives into play, su

  46. Upcoding and downcoding

    小說 – 日光愛人 – 日光爱人

    漫畫 – 山照密碼 – 山照密码

    看着頃還在那邊眉飛色舞刺人粘膜的女人家此刻片段心驚肉跳的脫離，到位的人都時有發生一種爲怪的感。不只因夫總算今這裡高的主任出其不意被罵跑了，更歸因於楊光曝露和他平淡看上去截然相反的單方面。那是一種敬意大千世界的凜然氣勢，唯獨在切實有力人家好多的情事下才能發散出來，就像一隻獸王在玩兒一隻小羔羊。

    “切！還美容得蠻有品的勢頭，卻是個沒大腦的太太！”楊光又透露他的標記笑影，“你們幹嘛？還禁絕備不休，真想搞砸啊？”

    專家哦了一聲，擾亂從呆頭鳥變成跑跑顛顛的鵲，進去迫在眉睫磨拳擦掌狀態。

    “阿光，這麼樣沒事兒嗎

  47. robot cleaner
    Auto Vacuum and Mop Combos

    The top auto vacuums and mops are designed to let you clean hands-free. They’re compatible with smart home systems, set schedules through apps, and have virtual boundaries. Some, such as the eufy Omni X2, even dry and wash mop pads after use.

    These models combine 8000Pa suction and mopping

  48. https://dripborn.com/
    Banyak yang mereomendasikan untuk bermain dengan memakai app judi online. Hal itu sebetulnya benar-benar berdalih. Betaruh direkomendasikan buat main memanfaatkan app judi online karena dirasakan lebih memberikan keuntungan dan membantu. Bermacam pekerjaan bisa dilaksanakan dengan begitu gampang kalaupun menggunanakan app judi online.

    Pemakaian program amat penting untuk mendukung permainan satu hari – hari. Berbagai h

  49. wyciszenie mieszkania
    W dzisiejszym świecie, gdzie hałas jest nieodłącznym elementem naszego życia, staje się niezwykle istotnym zadaniem. W każdym z nas tkwi pragnienie stworzenia przestrzeni, która sprzyja relaksowi, skupieniu i wyciszeniu. Dlatego warto przyjrzeć się skutecznym sposobom na redukcję hałasu, który może zakłócać nasz spokój.

    Wyciszanie mieszkań to nie tylko kwestia estetyki, ale

  50. best freezer brands uk
    The Very Best Brand Name Fridge Freezer

    Getting a fridge freezer is a major purchase, and the brand name you pick can impact how well it performs. Whether you’re trying to find a spending plan choice, wise fridge or something professional chefs would go gaga over, here are the finest brands to consider.

Leave a Reply

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