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.

376,720 thoughts on “Department Store Industry”

  1. where to get pallets​
    What You Need to Know About Pallets of Wood for Sale

    Pallets may appear to be simple products however there’s a lot more that goes into their production. And, like any other commodity, they’re priced based on their raw materials.

    One of the main factors is the grade of lumber. Pallets are usually mad

  2. test de grossesse
    Calculateur en tenant semaines de grossesse – Découvre à combien en compagnie de semaines toi es après Supposé que tu peux déMoi-mêmeà faire seul test à l’égard de grossesse

    Merci pour votre épitaphe ! Vous allez recevoir votre libéralité dans Courrier d’céans quelques laps. Personnalité consulte mien Inventaire Rare erreur orient survenue…

    test de grossesse

    Ceci huile celu

  3. thor311
    salah satunya mimpi paling buruk betaruh yaitu mendaftarkan ke situs slots online penipu. mendaftarkan ke suatu situs slots online penipu itu bakal betul – betul bikin rugi beberapa petaruhnya. oleh karena itu, betaruh mesti mengetahui benar berkenaan ciri-ciri – ciri-ciri dari suatu situs slots online penipu. di bawah ini ialah jejeran tanda-tanda inti dari situs slots online penipu.

    permainan sedikit

    tanda-tand

  4. französische bulldogge kaufen welpen
    A French Bulldog For Sale in New York

    A French bulldog is a large investment. You’ll be required to pay for vet treatment and medications. Additionally, you’ll need to purchase equipment and toys.

    Breeders who are not ethical often create litters that don’t take into account the health or longevity of their puppies. These b

  5. emergency gas engineer buckingham
    Why You Need to Just Utilize an Experienced Industrial Heating Engineer

    When your central heater malfunctions, you require skilled and competent professionals to assist you out. We can link you with Gas Safe registered heating engineers in Buckingham that can identify any issue and fix it at a time practic

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

    In the present wave of search for health, more and more people aspire to attain the greatest fat and healthy lifestyle.With the rise of varied weight loss items available in the market, Nagano Tonic quickly stood down along with its unique formula and significant effects, becoming the decision this is certainly most beneficial i

  7. more information here
    There is de facto no major benefit either way, except knowing what tools and resources you need to have available to determine the strength on the company. As an example if may possibly publicly held, there are several filings that they have to make on hand. If they are privately held you can run a credit check or businesses such as Dunn and Bra

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

    In a society by having a top sense of health today, lots of people want to have fat that is perfect healthy systems.Facing a wide range of weight-loss items, Nagano Tonic, being an revolutionary option, quickly became a well known item within the hearts of customers along side its unique formula and excellent impacts.

  9. pelet sobası
    Taleplere ilişkin olarak herhangi bir ücret dileme edilmemesi asıl olmakla omuz omuza, Şirket’in Zatî Verileri Koruma görevlisi Müesses aracılığıyla belirlenen ücret tarifesi üzerinden ücret istek etme hakkı saklıdır. Bu kapsamda Kanun’un 11. maddesi uyarınca şahsi done sahipleri;

    Bunun yerı dizi tasarımı ve teknolojisi sebebiyle pelet sobası yakmak odun sobası yakmaktan elan teamül. Temelı pelet sobalarını karşıd

  10. Commissioner of oath 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 of the docum

  11. Contact
    Welcome to a safe space for those who struggle with dental anxiety in Cary, NC. We understand that going to the dentist can be a stressful experience for many individuals, which is why we are dedicated to providing gentle dentistry to help ease your fears. Our team is committed to creating a calming and supportive environment to ensure that you feel comfortable and at ease during your dental visits. Say goodbye to your dental anxiety and h

  12. buy lsd blotters 300 ug for sale
    In recent years, the conversation surrounding psychedelics has gained significant traction, with substances like LSD (lysergic acid diethylamide) emerging from the shadows of stigma and into the spotlight of research and discussion. Among the various forms of LSD, liquid LSD stands out as a unique and potent variation, often surrounded by b

  13. ID verification Saskatoon
    A good tip to keep in mind when thinking about hiring a lawyer is to write down several questions that you wish to ask him or her. You want to find out what their philosophy is and so on, and asking questions will help give you a clear idea about them.

    A good tip to remember if you’re thinking about hiring a lawyer is to take your time and make your search th

  15. duel fuel cooker
    Range Cookers Dual Fuel

    Dual fuel range cookers blend electric and gas heating to deliver the best of both worlds. They provide instant heat adjustment on the cooktop and precise baking and roasting results in the oven.

    These appliances are great for chefs who like to explore different cooking techniques a

  17. best car locksmith milton keynes
    How to Find the Best Auto Locksmiths Near Milton Keynes

    Locksmiths install and repair locks of all kinds including simple key-based locks to high-security electronic devices. They also provide assistance on office and home security systems. They are accessible 24 hours a day and can help wi

  18. buy caluanie muelear oxidize europe
    Caluanie Muelear Oxidize

    Caluanie muelear oxidize is a potent chemical used in a variety of industrial processes. Its powerful oxidizing properties aid in the breakdown of various materials. This makes it a key element in a myriad of manufacturing processes, such as recycling metals and removal of paint.

  19. gas safety check buckingham
    Why It is very important to Get the Assistance of Central Heating Engineers

    If you have a problem with your central heating in buckingham it’s crucial to call a qualified Gas Safe engineer. gas safety check buckingham can repair and preserve your boiler rapidly and securely.

    They can also assist with other mainten

  22. Read the Full Post
    Smart Vacuum Cleaner Features

    A smart vacuum cleaner that has the right features is an investment in peace of mind. Some models come with virtual walls that you can put around the entryways to prevent robots from entering certain areas.

    Clean the dust bin thoroughly and clean the sensors between c

  26. nagano tonic tea
    ✔️Nagano Tonic Official Website: 🔥 nagano-tonic-reviews.shop/ 🔥

    In today’s fast life that is-paced greater numbers of individuals are desperate to possess healthier weight and perfect figure.However, when confronted by a variety of diet items on the market, choosing really a effective item has changed into a problem for a lot of people.The emergence of Nagano Tonic undertake a fresh solution due

  27. 国内消費促進
    The Bank regarding Japan plays some sort of pivotal role throughout shaping the scenery of financial markets, particularly through their monetary policy projects. With 高齢化社会の影響 to managing interest rates and quantitative easing, the middle bank has aimed to stimulate Japan’s economy while influencing wall street game dynamics. As some sort of result, the actions of the Western yen and typically the fluctuations of resource prices hav

  28. best place to buy bunk beds
    The Best Bunk Beds For Small Spaces

    Bunk beds are a great space-saving solution in small bedrooms. But finding the best one for your kids’ bedroom is dependent on the room’s size and ceiling height, as well as your budget and unique requirements.

    Find a twin-overtwin bunk with sturdy guard rails and a wide ladder entrance

  29. ethanol wall mounted fireplace
    Bioethanol Media Wall

    Media walls integrate entertainment and storage into a streamlined, trendy unit. They likewise add a cosy, inviting feel to any living space. They can even increase your home’s resale worth.

    Bioethanol fires are a fantastic alternative for a

  30. automatic vacuum cleaner
    Best Robot Vacuum Cleaner on Sale

    If you’re looking for a hands-free cleaning companion, you should consider a top-of-the-line vacuum cleaner with mopping capabilities. These models typically feature automatic water refills, powerful suction, smart navigation and mapping, and an auto-emptying dock that collects debris back into its dustbin after each use.

    <

  31. https://cip4d01.rest/

    Kenapa Harus Pilih CIP4D untuk Slot Live?

    Slot live di CIP4D emang pilihan terbaik buat pencinta slot gacor. Dengan modal receh, kalian udah bisa gas bermain. Nggak cuma gampang menang, sistemnya juga aman dan cepat.

    Slot Gacor CIP4D untuk Semua Budget

    CIP4D ngasih kemudahan buat kalian yang pengen main tanpa takut kanto

  32. duel fuel cookers
    Buying Second Hand Dual Fuel Range Cookers

    A dual fuel range cooker is an excellent appliance that has a gas cooktop as well as an electric oven. These range cookers offer many benefits depending on your preferences, including temperature control that is quick and responsive, and the capability to

  33. 企業競争力
    In new years, the Japanese economy has found by itself at a crucial crossroads, juggling the particular delicate balance among growth and stability. As being -largest overall economy on the globe, Japan encounters a special set involving challenges and options that shape it is economic landscape. Right after decades of stillstand, Japan is attempting to rekindle economic growth while guaranteeing financial stability inside a r

  35. best place to buy bunk beds
    The Best Bunk Bed Reviews

    Bunk beds are an excellent option for families with multiple children and can help to reduce space in smaller rooms. However, you’ll need take into consideration your room size and ceiling height and whether or not you’d like an trundle bed for sleepovers.

  36. 3 seater leather and fabric sofa
    Choosing is an integral part of any living-room. Choosing the right one is essential to ensure it fits your space and offers enough seating for you and your guests.

    Whether you’re trying to find a modern Scandi-inspired style or a more traditional design, we have a wide selection of 3 seater cream fabric sofas to suit your home d

  37. ID verification Saskatoon
    Before you hire a lawyer, sit down and define the problem that you have. Sometimes, you may find that your situation is not bad enough to warrant a lawyer. Understanding exactly what ID verification Saskatoon are going through can help save you a lot of money over time with a lawyer and court fees.

    Ask your friends and family for referrals if you

  39. 3 seater fabric electric recliner sofa
    Upgrade Your Living Space With a Grey Fabric 3 Seater Sofa

    Upgrade your living-room with the deluxe convenience of a grey fabric sofa. This couch is readily available in a wide variety of styles and textures to fit conventional or contemporary decorations. Light grey couches produce lighter vibes, while charcoal grey

  40. simply click the up coming web site
    How to Find the Best Budget Robot Vacuum

    A bargain robot vacuum is a steal. But beware that it may cost more than you expect in maintenance: detangling hair from brushes, clogging inlets, and emptying the tiny dust bins can quickly make your dream of automating cleaning a chore.

    The iRobot

  41. thor311
    Sejalan dengan makin banyaknya pencinta taruhan judi online, tak tidak mengejutkan yang pasti bila saat ini ada begitu banyak type permainan yang ada. Berkata perihal type permainan, judi sportbook memanglah tidak pernah sepi pecinta. Tipe permainan yang lebih kental dengan perjudian olahraga ini selalu memang jadi alternatif beberapa penggemar judi games online sebab disamping memberi keuntungan tentunya permainan ini sangat juga sengit.

    <b

  42. robotic vacuum cleaner best
    The Best Home Vacuum Cleaner

    The ideal vacuum cleaner for your home is a multi-functional, user-friendly tool. The best model must be light, efficient and quiet.

    This model provides excellent suction for a very low cost. It also comes with an anti-hair wrap fl

  43. adhd treatment adults
    How to Treat Adult ADHD

    Treatment of adult ADHD is a mix of. In general, counseling is used in conjunction with medications to promote functional behaviors. may also include cognitive behavior therapy, which teaches patients how to manage their emotions.

    treatment for adhd in adults involves teaching the patient how to recogn

  44. thor311
    Apa anda minat untuk bermain taruhan atau judi online? bila iya, jadi awal mulanya anda mesti tahu perihal beberapa info seperti ulasan judi judi online. apabila anda memang dapat mendalami mengenai beberapa kupasan yang diartikan, karena itu selanjutnya ini sesungguhnya begitu menolong sekali biar anda dapat memahami akan semua proses yang ada. anda dapat untuk dapat memili web-site judi atau permainan spesifik sepertii poker langsung tetapi mas

  45. Commissioner of oath Saskatoon
    Selecting a lawyer is not always easy. Many people find themselves confused as to what type of lawyer to choose for the issues they are facing. Each legal dilemma that occurs is not the same as the next one, and you need the right lawyer who has the experience for your situation. Continue reading to learn what you need to know.

    A good tip if you’re look

  46. Hamlin-Schwibbogen Französische Bulldogge
    Buy French Bulldog Nearby

    French Bulldogs are small muscular dogs that charm everyone they meet. Their distinctive bat ears and expressive eyes are a delight to see.

    They are easy to train and enjoy playing with their families. As brachycephalics they are incapable of cooling themselves, and may require a leash or

  47. duel fuel cookers
    Reconditioned Dual Fuel Range Cookers

    A range cooker is an essential feature in every kitchen however it doesn’t need to be costly. Reconditioned dual-fuel range cooktops are an excellent way to save money while maintaining the quality.

    These appliances combine the advantages of gas and electricity cookin

  48. over at this website
    are a great option for children if space is limited. These rooms are stuffed with storage and are designed with creative layouts.

    Maximize vertical space with built-in shelving beneath bunks. This feature offers more storage space and helps keep bedrooms looking clean and uncluttered.

    <br

  49. wall mounted ethanol fireplace
    Including a Wall Mounted Bio Ethanol Fireplace

    Ethanol fireplaces can be set up anywhere without the requirement for a chimney. bio ethanol fireplace wall mounted do not produce any smoke or smells, unlike wood, coal and gas fires.

    If you are considering adding a wall mounted bio ethanol fireplace, it is essential to follow fundamental safety and

  50. pallets near me​
    to Consider When You Purchase Wood Pallets

    When it comes to purchasing pallets made of wood, there are several things to consider. You must select the appropriate type of pallet for your needs and ensure that it’s compatible with the equipment you use like forklifts.

    Wheth

Leave a Reply

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