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.

400,708 thoughts on “Department Store Industry”

  2. robot vacuum cleaner sale
    The Benefits of Robotic Vacuum Cleaners

    Regularly vacuuming and sweeping is essential to maintaining a clean house. This will stop dust particles from becoming airborne allergies. But with a busy lifestyle, cleaning can fall off your to-do list.

    Robot vacuum clea

  3. purchase used pallets
    Where to Buy Pallets Near Me

    In the Craigslist free section there is a section for pallets of wood for sale at a bargain price. However, you must be cautious about using pallets that were previously used for food as they may contain E.coli and other bacteria.

    Ask furniture, hardware, and garden

  4. robot vacuum cleaner cheap
    Top Rated Robot Vacuums

    A robot vacuum can keep floors clean enough to decrease the frequency you’ll need to manually vacuum. Select a vacuum that has good navigation, has the ability to clean stairs and corners and has large bins that only needs to be emptying every so often.

    <

  5. cleaning robots
    Vacuuming With a Robot Hoover is the Best Hands-Off Model We’ve Tested

    This high-end Eufy bot is the most hands-off model we’ve test so far. It vacuums, mop, self-empties, and washes and dry mop pads without your involvement.

    It doesn’t feature advanced cleaning options or a la

  9. robot vacuum cleaner cheap
    The Best Home Vacuum Cleaner

    The ideal vacuum cleaner for the home is a multi-functional and easy-to-use tool. The right model will also be quiet, light and efficient.

    This pick offers great suction at a reasonable price, with an effective anti-hair wrap floorhead as well as an odor neutralizing puck. It al

  10. secret info
    Treating Adults With ADHD

    If you suffer from ADHD daily tasks can seem like an enormous obstacle. It can be difficult to get out of bed in the morning, meet deadlines, and maintain healthy professional and personal relationships.

    To be diagnosed with ADHD, you must experience five

  11. robot vacuums cheap
    Robot Vacuum – Top Pick For Busy Households

    This is a top pick that combines robot vacuum and mop technology. Its sensors allow it to avoid obstacles, and it is able to empty its own bin.

    It features a smart dustbin equipped with 2,700-pascal vacuum power that can be adjusted to different surfaces. The app makes it easy to plan and monitor cleans.

  12. máy đóng gáy lò xo
    Whether you are looking for a printer that can do a little bit of everything, or you just need a printer that you can rely on for everyday tasks, the Epson XP410 printer is ideal for you. This multifunction printer has features that make it easy to print and copy, scan, fax, and scan. It is compatible with Apple AirPrint, Google Cloud Print, and has wireless capabilities.

    I

  13. you could look here
    Hamlin Candle Arch French Bulldog Puppies

    Frenchies are a very lovable breed. They are playful and fun and are great companions. Like all dogs, they do have some health issues.

    One of the most severe is brachycephalic airway syndrome (BS). This condition can cause difficulty breathing. This condition can cause respiratory infections, heart diseases

  14. simply click the following page
    How to Choose the very best Brand Fridge Freezer

    A fridge freezer is a big purchase so discovering a brand name you can trust is necessary. We asked devices professionals to name their favourite brand names.

    Bosch is a top choice for dependability with a concentrate on usefulness

  15. https://sunwin.delivery/
    Cá cược là một hoạt động được yêu thích và rộng rãi trên toàn thế giới. Với sự phát triển của công nghệ, cá cược trực tuyến đã trở thành một lựa chọn phổ biến của nhiều người, đặc biệt là những ai yêu thích thử thách.

    Cá cược trực tuyến là một trong những hình thức cá cược phổ biến hiện nay. Những người tham gia có thể đặt cược vào esports để kiếm tiền. Để tham gia, bạn chỉ cần đăng ký trên nề

  16. pallet for sale​
    How Large Pallets Are Used in Different Industries

    Pallets are everywhere: in the back of supermarkets, in the trash and on construction sites. They are the basis of supply chain operations and help facilitate trade across borders.

    Large pallets serve a wide range of industries, such as bevera

  18. robot vacuum cleaner cheap
    Finding the Best Robot Vacuum and Mop

    A robot mop and vacuum is a fantastic solution for homes with carpet or bare floors. Finding the ideal robot vacuum and mop may be difficult.

    This model has an auto-emptying bin and a tank that can be filled with water, and is able to wash itself. It also has digital areas for keeping out and

  19. robot vacuums cheap
    Robots That Vacuum and Mop

    Robots that mop and vacuum offer the convenience of cleaning dry debris (dust dirt) and wet mess (spills and stains) in one session without the need to switch out devices. They can also save storage space compared to having two separate units, especially in smaller living

  20. range cookers uk
    Range Dual Fuel Cookers

    Dual fuel cookers from Range offer an efficient heat control on the cooktop as well as consistent heating in the oven. These appliances are designed to be professional and ideal for home cooks who love to experiment with new recipes.

    They can also add value to your home, since they are a sought-after feature for a lot of prospe

  22. Sunwin
    Chơi cá cược là một trò chơi được yêu thích và thịnh hành trên toàn thế giới. Với sự phát triển của công nghệ, cá cược online đã trở thành sở thích của nhiều người, đặc biệt là những ai yêu thích thử thách.

    Cá cược trực tuyến là một thị trường phát triển mạnh mẽ hiện nay. Những người tham gia có thể đặt cược vào các sự kiện thể thao lớn để thử vận may. Để có cơ hội chiến thắng, bạn chỉ cần đăng ký tài khoản.
    <b

  24. https://plumbers-camden-town.co.uk
    From Apprentice to Master: The Journey to become a Skilled and Successful Plumber As soon as we are born, we embark on a journey through life. Some take the route of academia, while others choose to explore the wilderness. And after that there are those who discover their passion in the trades, like plumbing. The journey from apprentice to get good at is a challenging one, but for those who are ready to place in

  25. New Patient Dental Exam For Children
    Welcome, parents! Are you looking for dental insurance options for your little ones in your area? Finding the right coverage can be overwhelming, but we’re here to help make the process easier for you. From basic cleanings to more extensive treatments, it’s important to have a plan in place to ensure your children’s oral health needs are taken care of. Let’s explore some of the best dental insurance options

  26. media wall bioethanol fireplace
    Bio Ethanol Fireplace Wall Mounted

    Yes, wall-mounted bio ethanol fireplaces can be recessed into the wall. However, the product utilized should be non-combustible, such as a concrete backer board or brick. It should likewise be fire-resistant and certified as a class A.

  27. annual gas safety check buckingham
    Boiler Fixes in Buckingham

    If your boiler isn’t warming your home, it may require a repair work. This problem might be brought on by a range of factors, consisting of worn-out parts and air blockages.

    It’s crucial to set up routine upkeep gos to for your boiler. Thes

  29. https://plumbers-camden-town.co.uk
    Plumbing Myths Busted! What You Shouldnt Believe Plumbing related is an important aspect of our daily lives, yet it looks like there are so many misconceptions encircling this crucial program. From DIY remedies to old wives’ stories, there are many misconceptions circulating that may lead to costly mistakes and unnecessary stress. In this content, we will debunk these plumbing myths and provide you with the fact

  30. bioethanol wall mounted fires
    Ethanol Fireplace Wall

    A wall-mounted ethanol fireplace supplies a modern and elegant focal point. They are simple to use and preserve and offer extra heat without creating smoke or ash. They also need minimal setup.

    Ethanol wall fires are quickly sustained by p

  31. good refrigerator brands
    The Best Fridge Brands

    The refrigerator is one of the most crucial big appliances in your home. It keeps your food fresh and safe, so it’s a huge purchase you ought to research.

    The most trusted fridge brand names are LG, GE and Whirlpool. They have low repair work rat

  32. hole in wall bioethanol fires
    Bio Ethanol Wall Fire

    A bio ethanol wall fire is a contemporary and easy to utilize alternative to standard wood-burning ranges and gas fireplaces. They require no chimney and minimal setup.

    They produce genuine flames and heat without the smoke that can trigger black soot marks on surface areas and smoky smells penetrating materials. A b

  33. hipnoterapi terbaik di batam
    Hipnoterapi telah menjadi jalan keluar populer dalam membasmi berbagai masalah emosional, mental, hingga pengembangan diri. hipnoterapi terbaik di batam , tersedia beberapa mottagning hipnoterapi terpercaya yg menawarkan layanan berkualitas. Artikel ini jadi membahas secara mendalam rekomendasi hipnoterapi Batam terbaik, termasuk informasi mengenai biaya, ulasan, dan manfaat terapi ini untuk penduduk setempat.
    <b

  34. best dual fuel range cookers uk
    Dual Fuel Range Cooker With 13amp Plug

    Are you a cook at home who enjoys the fast cooking control of gas cooktops but wants an electric oven to bake? Find a dual fuel cooker that has the best of both worlds.

    Many experienced home chefs favor gas coo

  35. automated vacuum
    Cleaning Robot Mop and Vacuum Combo

    The majority of robot vacuums and mops come with an application that lets you save maps of your home, create cleaning schedules, and choose mopping modes. Certain models with dual rotating pads also return to the dock to clean their brushes and empty dirty water.

    <

  36. Learn how it works
    As homeowners age, several seek ways to be able to enhance their financial safety without having to sell their very own cherished residences. One particular option that has gained popularity within recent years is the reverse mortgage, a financial merchandise that allows seniors for converting a part of their home equity into cash while still mai

  38. file GPX android
    FileMagic is a comprehensive and user-friendly file management application designed to simplify your digital experience. Be it dealing with popular document formats or niche file types, FileMagic is the ideal software for users who want to open, view, and manage a diverse array of files without requiring multiple specific programs. One of the standout feat

  39. names of fridge brands
    How to Choose the very best Fridge for Your Kitchen

    The very best fridges are spacious, trustworthy, and look terrific. You want a refrigerator that will deal with your kitchen’s general style and offer plenty of space for your food.

    This streamlined French-door design has a user friendly beverage center and a smart app for tracking i

  40. bedside cot crib cotsfortots
    The Silver Cross Slumber Bedside Crib Travel Cot

    This bedside crib, designed for divan beds, is simple to put together. The instructions can be a bit difficult to follow, especially as there’s an order in which the pieces have to be placed in, however MFM testers found it very easy once they were used to it.

  41. treatment for adhd adults
    Treatment For Adult ADHD

    Treatment for adhd in adults includes therapy with medication, talk therapy and lifestyle modifications. Medicines can ease symptoms, but they may take time to work and every person reacts differently.

    Talk therapy can help you an

  42. https://sunwin.delivery/
    Đặt cược là một hình thức giải trí được yêu thích và phổ biến trên toàn thế giới. Với sự phát triển của công nghệ, cá cược online đã trở thành sở thích của nhiều người, đặc biệt là những ai yêu thích thử thách.

    Cá cược bóng đá là một trong những hình thức cá cược phổ biến hiện nay. Những người tham gia có thể đặt cược vào các sự kiện thể thao lớn để thử vận may. Để chơi, bạn chỉ cần đăng ký tà

  44. names of fridge brands
    How to Choose the Best Brand of Refrigerator

    The very best brand name of fridge depends upon your particular requirements and preferences. Whether you’re a tech enthusiast in search of innovative functions or looking for a resilient fridge that can stand the test of time, there are a lot of choices out there.

    Device repair work experts applauded

  45. secret info
    Add Treatment For Adults

    Adults with add/adhd might not show as many severe symptoms as children, however it can affect their lives in significant ways. In most cases, stimulants are prescribed as the first option for treatment. They can enhance academic performance, improve so

  46. bioethanol wall mounted fires
    A Media Wall With a Bioethanol Fireplace

    A media wall with a bioethanol fireplace is an eye-catching feature in any home. These are frequently constructed into a false wall or stud wall, which allows you to hide wires and plug sockets so the space looks clean and contemporary.

    <br

  48. máy đóng gáy xoắn
    Refurbished Dell laptops on sale are a great way for you to get a brand new laptop for a fraction off the price. There are some things that you need to remember before you shop for refurbished Dell laptops. Before you use your refurbished laptop, it is important that you clean it thoroughly. To ensure that the functions of your refurbished laptop are working properly, you should also inspect it.

    <br

  49. media wall bioethanol fireplace
    In-Wall Bioethanol Fires

    Unlike gas and electric fires that require an external connection to energies, bioethanol fires run entirely on fuel. This makes them a lot easier and more affordable to install than their equivalents.

    Ethanol firepla

  50. media wall bioethanol fireplace
    Bio Ethanol Wall Mount Fireplace

    A bio ethanol wall mount fireplace is an unique decoration piece that will draw the attention of anyone who sees it. They are typically used indoors but can likewise be mounted outdoors.

    Before utilizing a wall mounted bio fire, it is important

Leave a Reply

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