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.

263,276 thoughts on “Department Store Industry”

  2. bedside cot used
    What Is a Bedside Cot?

    Bedside cots are available in a bassinet-style and are fixed to the bed’s side. They have a side that is removable or drop-down which makes it easier to feed and pick up your baby during the night.

    These are an excellent alternative to bed-sharing, which isn’t recommended by experts and increases the risk

  3. NSC-2260804 in vivo
    The biocontrol test showed that the date palm wastes compost was more effective; from the sixth day of incubation, the unsterilized extract of this compost at 10% showed the highest antagonistic effect against the pathogen with an inhibition rate of 100%. The inhibition rate using microfiltrated extract didn’t exceed 30%. All autoclaved extracts lost their antagonistic effect against the indicator fungus. Thus

  4. gas certificates buckingham
    Gas Safety Certificates For Landlords

    Getting regular gas safety checks is a fundamental part of keeping your home safe. This helps to lower the danger of carbon monoxide poisoning, which can be deadly.

    The Union Hill community is also fretted that a proposed natural gas compressor station will harm their well water and contaminate the air with toxic sub

  5. click the next document
    Treatments For ADD – Drugs and Counselling

    Treatment options for ADD include counseling and medication. It is important to try both to determine which one is more effective.

    People with classic ADD are disorganized, inattentional and are often hyperactive. They lack blood flow to the prefrontal cortex as well as the b

  6. https://waterloogardens.com/
    Pilih perjudian yang cocok menjadi hal mutlak yang semestinya selalu anda simak. Iktikad cocok di tempat ini tentunya ialah tipe permainan yang benar-benar simpel dimainkan dan punyai perbandingan kemenangan tinggi. Nach, bicara mengenai type permainan ringan dan punya kemungkinan menang tinggi, judi bola betul-betul jadi opsi terunggul anda.

    Perjudian online ini banyak diputuskan karena keuntungan serta

  9. top rated robot vacuum
    Smart Vacuum Cleaner Features

    A smart vacuum cleaner that comes with the proper features is an investment in peace of mind. Certain models come with the ability to place boundaries around the entryways to stop the robot from entering certain areas of your home.

    To maintain your robot vacuum’s per

  10. There’s A Reason Why The Most Common Online Crypto Casino Debate It’s Not As Black Or White As You
    Might Think crypto casino online (Tayla)

  12. 高齢化社会の影響
    In new years, japan economic climate has found itself at an important crossroads, juggling typically the delicate balance in between growth and steadiness. Because the third-largest overall economy on the globe, Japan encounters a special set involving challenges and possibilities that shape the economic landscape. After decades of stillstand, Japan is trying to rekindle financial growth while making sure financia

  13. 日本製造業の革新
    In current years, the Bank of Japan provides adopted a range of unconventional monetary policies aimed at revitalizing the nation’s economy. These endeavours, including quantitative reducing and yield contour control, have greatly influenced financial market segments, specially the stock market. As investors carefully monitor the key bank’s actions, knowing how these guidelines shape market aspect becomes increasingly impor

  14. Gas safety certificates buckingham
    For Landlords To Perform A Yearly Gas Safety Check

    If you’re a landlord you have a legal responsibility to guarantee that gas appliances, pipeline work and flues are preserved in a safe condition. This consists of annual safety checks.

    Landlords

  15. Binomo strategy
    Online trading platforms, such as platforms like Binomo, have reshaped the way individuals interact with financial markets. They offer a opportunity to engage with various assets, including forex, stocks, and raw materials, making the process more available to traders of all skill levels Binomo interface.

    One of the main benefits of platforms like Binomo is its convenience. Traders can use systems from any l

  16. bioethanol fireplace wall
    Bio Ethanol Wall Mounted Fireplace

    Ethanol wall mounted fireplaces are an excellent way to heat up a room without a chimney or flue. They also look sensational and produce a very reasonable flame.

    While bio ethanol fires are low-cost to run, they can not repla

  17. read more
    Release of dsDNA from necroptotic chondrocytes was found to be significantly increased compared to controls. This study demonstrates that cartilage trauma leads to a high prevalence of necroptotic chondrocyte death, which can be induced and inhibited in vitro, indicating that both necroptosis and its consequential release of immunostimulatory cellular contents are potential therapeutic targets in post-traumatic arthriti

  18. https://khususmaxim.com/
    bila anda benar-benar berkeinginan untuk main perjudian slots online, karenanya anda sebaiknya ketahui kalau ada cara-cara dan ada sejumlah kiat yang dapat anda pakai. salah satunya ada dianjurkan tidak untuk gampang terambil emosi. banyak salah satunya yang kalah dan tidak sukses dalam perjudian slots karena mereka terikut emosi. menjadi pemain sebaiknya anda memang tidaklah melaksanakan itu sebab bakal ada rugi besar yang dapat a

  19. best bunk bed desk
    How to Choose the Best Bunk Bed With Slide

    A bunk bed with a slide can transform a sleeping area into a jolly play space. The sturdy structure and safety guardrails ensure a secure sleep, while the storage steps support twin mattresses without the need for a box spring.

    Choose from

  20. robotic hoovers
    Best Automatic Vacuum Cleaner Robots

    Robot vacuums make use of the navigational tools like sensors, lasers, and cameras to map your space and efficiently clean while keeping clear of obstacles. Some robot vacuums even mop and self-empty the dustbins!

    Most connect to apps or digital voice assistants to allow hands-free cleaning. Certain models include features such a

  21. 해외에이전시
    에볼루션 룰렛과 에볼루션 바카라를 제공하는 주요 해외 카지노 사이트인 에볼루션 게이밍은 또한 정부와 라이브 카지노 게임의 세계 최고의 개발자로부터 라이선스를 받았습니다. 2006년에 Evolution Gaming이 설립되어 전 세계 최고의 온라인 카지노 플레이어에게 온라인 라이브 카지노, 스마트폰 및 태블릿 라이브 카지노 쇼와 같은 다양한 인터페이스 솔루션을 제공합니다. 한국 게임 플레이어들 사이에서 널리 알려진 이름은 Evolution Gaming에서 운영하는 온라인 카지노 게임 회사인 Evolution Casino(Evolution Baccarat)입니다. 많은 게임 개발자들이 온라인 카지노 사업에 진출하고 있지만 가장 대중적이고 인지도가 높은 사업입니다. 맞춤형 라이브 테이블, 바카라, 룰렛, 블랙잭, 용호, 머니휠 등 Gaming의 다양한 맞춤형 게임을 사용할 수 있습니다. 또한 약간 다른

  22. Invisalign For Kids With Misaligned Teeth
    Invisalign Treatment for Children with Severe Misalignment in Sugar Land, TX Welcome to Sugar Land, TX, where your child’s smile transformation journey begins with Invisalign treatment for severe misalignment. Say goodbye to traditional metal braces and hello to clear, comfortable aligners that are nearly invisible. At our specialized dental office, we understand the importance of addressing misalignment

  23. 星展債務重組
    現在快節奏的世界那是金融的許多人被束縛在似乎不切實際的債務互聯網中逃跑。職責貸款和借貸可以考慮大量使用一個人的肩膀是否是由於無法預料的醫療費用，任務損失，或只是只是生活在超越一個方法。但，有可行的解決方案可用，例如個人自願安排（IVA），信用卡債務減免計劃（DRP），以及破產， anotepad.com/notes/7cr2f2mq 。

    了解IVA債務重組

    iva只是合約那是正式的債務人及其債權人，使債務人能夠償還分享其中財務義務一個小組時期

  24. best fridge freezer brands
    How to Choose the Best Fridges for Your Budget

    Your budget plan will figure out which brand names you can manage, however even within your rate variety you’ll find distinctions in quality and functions. Look for smart fridges that prioritize peaceful operation and offer noise-dampening technology.

    <br

  26. kaufen französische bulldogge
    French Bulldog For Sale Puppies

    Frenchies are relaxed companion dogs who love to lounge and sleep. They need only light daily exercise, such as a walk or play session. They are brachycephalic and can’t cool themselves off easily. Avoid exercising too much during hot temperatures.

  27. selleck inhibitor
    Additionally, much of the existing knowledge derives from studies performed in animal models and may not accurately represent the human condition. However, available data establish a role for NGF in the modulation of nociception through effects on the release of inflammatory mediators, nociceptive ion channel/receptor activity, nociceptive gene expression, and local neuronal sprouting. The role of NGF in nocicep

  28. bedside cot used
    Bedside Cots – The Safe Alternative to Co-Sleeping

    A bedside crib is an cot with a bassinet style that is attached to the side of your bed to allow safe co-sleeping. It allows you to be able to see and reach your baby for night feeds without having to disturb them. It is also great for those who suffer from reflux.

    <

  29. how to open GG
    The FileMagic application is a flexible file handling tool designed to handle a variety of file formats with ease. For individuals who encounter different types of files that cannot be easily accessed by built-in software on their computers, FileMagic offers a complete solution. It supports a multitude of file extensions, making it an valuable application for anyone looking to

  30. bioethanol fireplace wall
    Bioethanol Fires For Media Wall

    Wall mounted bio ethanol fireplaces need proper site preparation and mindful assembly. Follow all maker guidelines for fueling, ignition and flame control.

    Whether built into a media wall, a bookcase or incorporated in an existing recessed location, these fires include style style and atmosphere to a

  31. maxim4d
    deposit merupakan satu sisi penting yang mesti kita kerjakan pada waktu dapat bermain perjudian online apa saja juga termasuk judi slots. anda harus kenali kalau anda betul-betul disarankan untuk mendeposit lebih dahulu sebelumnya dapat bermain perjudian online. sebelumnya anda diijinkan buat terhubung permainan dalam website slots online bukan selenggarakan masuk, anda diwajibkan buat deposit lebih dahulu sebagai satu diantara syarat penting yang

  33. リスク管理
    Japan economy stands at a crossroads, navigating typically the intricate dynamics involving growth and steadiness in a rapidly changing global panorama. As with all the repercussions involving an aging human population, evolving labor market conditions, and fluctuating consumer demand, the particular challenge of promoting economic growth while keeping financial stability has never been more pressing. Japan’s uniq

  34. ratu311
    Saat sebelum kita memilih untuk main judi online, kita harus ajukan pertanyaan dahulu dalam diri sendiri berkaitan argumen mengapa harus bermain games itu. bukan tiada argumen sesungguhnya akan tetapi ada sejumlah argumen khusus yang lantas membikin kita menetapkan untuk terjun di dalam permainan itu. mengapa harus ketahui faktanya? Terang saat sebelum bermain dan memastikan untuk bermain, kita mesti mengetahui akan argumen kuat yang bikin kita

  35. Keene kaufen französische bulldogge
    Buy French Bulldog Nearby

    French Bulldogs are compact, muscular dogs that enchant anyone they meet. Their distinctive bat ears and expressive eyes are a joy to behold.

    They are easy to train and enjoy playing with their families. However, as brachycephalic dogs they are unable to cool themselves quickly and might require a stay i

  36. please click the next post
    Picking the Best Bunk Beds

    Bunk beds can be a smart space-saving solution for rooms with kids But there are many options to choose from. Find a style that allows for flexibility, like lower nooks that could be storage units or a trundle to accommodate sleepovers.

    Consider the position of the ladder. Some are centered, which is mor

  37. 주소모음 사이트
    Top Internet site Address Collection Sites for Seamless Searching

    In the huge expanse of the particular internet, finding the right websites for your demands can often feel overpowering. Whether you’re looking for professional sources, educational tools, or even simple entertainment, the particular sheer amount of written content can make nav a challenge. This

  38. wyciszenie ściany od sąsiada
    W dzisiejszym zaganianym świecie, gdzie hałas i zgiełk są nieodłącznymi elementami codzienności, coraz więcej osób poszukuje sposobów na wprowadzenie harmonii i spokoju do swojego wnętrza. Wyjście naprzeciw tym potrzebom staje się sztuką, której kluczowym elementem jest wyciszanie ścian. To nie tylko technika, ale również sposób na stworzenie przestrzeni, która sprzyja relaksowi i odpoczyn

  39. duel fuel range
    Range Dual Fuel Cookers

    Dual fuel range cookers offer a responsive heat control in the oven as well as a steady heat on the stovetop. These professional-style cooking appliances are perfect for home cooks who want to explore new recipes.

    They can also add value to your property, as they are

  40. this page
    Choosing the Right Robot Vacuum

    A robot vacuum can help you keep your home clean. It is important to select the best robot vacuum for your needs. Some of the features you should look for are self-emptying bins, mopping and recognition of objects.

    There are models that can be used as mops to clean up spills and pet hair. Some models have docks that a

  41. 企業投資支援
    The impact in the Standard bank of Japan’s procedures on the stock exchange is a crucial aspect of understanding Japan’s economical landscape. As one particular of the most influential central banks globally, the Loan company of Japan features implemented a variety of economic policies designed to activate economic growth, stabilize prices, and inspire investment. These policies, which include quantitative easing and give curve

  43. robot vacuum reviews
    Robot Vacuums With Mop

    Some robot vacuums can mop as well as vacuum. These models are great for homes with hard floors. These devices typically come with reservoirs that you fill with water or cleaning solutions, microfiber cloths, and sensors that allow you to move around furniture.

  45. best fridge freezer brands
    Which Fridges Brands Are Right For You?

    Whether you’re a techie who craves innovative functions or somebody aiming to make a style declaration with your fridge, there’s a brand that’s right for you. Selecting the finest fridge can help you keep your food fresh and healthy for longer.

    <b

  47. annual gas safety check buckingham
    in Buckingham

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

    The CP12 will consist of the det

  48. ND-630 mouse
    212, p=0.012) for pacemaker implant within 30 days. The presence of atrial fibrillation (hazard ratio (HR) 3.905, p= 0.001), albumin level (HR 0.316, p=0.034), and diabetes (HR 2.323, p = 0.027) were predictors of death in a multivariate analysis while pacemaker implant within 30 days was not. Atrial fibrillation patients who were anticoagulated had improved survival in a stratified Kaplan-Meier analysis compared to tho

  49. Comprehensive Dental Checkup For New Patients
    Welcome to our comprehensive guide on holistic dental care for new patients in TX 77407! If you’re looking for a more natural and integrative approach to dental health, you’ve come to the right place. In this article, we’ll cover everything you need to know about holistic dentistry, including the benefits, treatments, and what to expect during your visit. Whether you’re a seasoned holistic dental patie

  50. best fridge freezers
    The Finest Brands of Refrigerators

    There’s no one best brand of fridge. However according to CR’s laboratory and study information, GE, Bosch, Whirlpool, and KitchenAid fridges are durable and dependable.

    GE has fundamental French door and side-by-side designs, along with state-of-the-art choices with wise fridge innovation and elegant ice styles.

Leave a Reply

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