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.

237,608 thoughts on “Department Store Industry”

  1. buon mercoledì
    Iniziare la giornata nel modo giusto può fare la differenza tra una giornata produttiva e una piena di stress. Con un semplice “buongiorno”, possiamo trasmettere positività e gioia a chi ci circonda. Il potere di un saluto sincero può illuminare anche il lunedì più grigio e rendere il mercoledì più leggero. Oggi, esploreremo come immagini e gif incantevoli p

  3. sengtoto
    Speaking about the discrepancies amongst on the internet and offline slots one particular significant point to recall is that the excitement is existing in both. The change involving the two is not enormous. The principle of taking part in the video game is all the identical. A result arrives out of the reels and if it is a successful amount, the payout is made.

    The practicalities of enjoying an on the ne

  4. 해외선물미니업체
    In your struggle to obtain the very best weight loss information to help you toward your goals, you may feel a little confused. There is so much information you will come across, it could be difficult to manage. We have compiled some great tips to

  5. more info
    Heating Engineers in Buckingham

    Discover trusted regional heating engineers near you, all vetted and examined. Book a repair work or setup free of charge.

    The heating engineers we link you with are fully certified Gas Safe registered and can attend your residential or commercial property to deal with a central heating fault at any time 24/7 365 days a year. They likewise

  6. what is the best fridge freezer brand
    The Finest Brand Fridge Freezer

    Buying a fridge freezer is a major purchase, and the brand you select can affect how well it performs. Whether you’re trying to find a budget option, wise fridge or something professional chefs would go gaga over, here are the best brand names to think about.

  8. cheap dual fuel range cookers
    Reconditioned Dual Fuel Range Cookers

    A range cooker is an essential appliance in every kitchen, but it doesn’t have to be expensive. Reconditioned dual fuel range cookers are a great choice for those who wish to save money without sacrificing quality.

    They combi

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

    In Nagano, Japan, there is a mystical spot known as the “spring of youth”, that is a magical mannal dew that may wake the potential up associated with body -Nagano Tonic.This product has set off a revolution in bodybuilding and fat loss globally, and it also has get to be the gospel of countless individuals’s pursuit of medical

  10. best brand for refrigerator
    The Finest Fridge Brands at Lowe’s.

    When buying large home appliances like fridges, you want them to be reliable and look excellent in your cooking area. You also wish to be able to get customer care and guarantee help in a prompt manner.

    A couple of brand names stand apart for their outstanding

  11. Click On this site
    Why Landlords Need a Gas Safety Check

    Landlords are needed by law to have their gas appliances and pipework checked every year. The inspection is performed by a licensed professional and ensures the safety of renters.

    In addition to ensuring compliance with legal requirements, a gas safet

  12. best brand for refrigerator
    How to Choose the very best Fridge Freezers

    GE fridge freezers get leading marks from reviewers for their sturdy develop, temperature regulation and frost-free design. This prevents the freezer developing ice, saving space and effort when defrosting.

    It’s likewise freestanding, which gives it more versatility for placing in your cooking area. There a

  16. https://output.jsbin.com/gobijupexu/
    Canada has what generally call a national florida sales tax or a worth added tax (VAT). This Goods and Services Tax (G.S.T.) of five percent (as at January 1, 2008) is applicable to many Canadian purchases.

    E-mail is actually quick straightforward to write and send, that each and every give it the same attention once we would a printed mail. It’s VERY important to make

  17. https://kinogo.host/35198-transformery-4-epoha-istrebleniya-2014.html
    В английском языке есть особый термин, который обозначает безденежье. Brassic – это слово обозначает отсутствие средств в данный момент. Оно, чаще всего, относится к определенному человеку, а не к группе. Сюжет этого сериала рассказывает о матери, которая оказалась на пороге бедности.

    Сюжет кинофильма завязывается сразу посл

  19. Dental Assisting Clinical Practice
    Welcome to the world of dental assistant training! If you’re looking to start a career in the dental field but aren’t sure where to begin, you’ve come to the right place. Finding entry-level dental assistant training near you can be the first step towards achieving your career goals. From learning the basics of dental terminology to gaining hands-on experience in a dental office, this training can set you on

  20. pallet near me
    Buying Liquidation Pallets

    Buying liquidation pallets is a great method to earn cash. The trick is to sort through the various items and select those that have a significant price. This includes electronics, fashion and home products.

    Most listings will offer an extensive inventory list (called manifest) of what’s in the pallet. Be sure to read it carefully, as s

  21. treatments for adhd in adults
    Treating Adult ADHD

    Adult ADHD can be treated to help manage symptoms and improve quality of life. Generally using a combination of medication and psychosocial therapy is the most effective approach.

    Treatments for adult ADHD include stimulants and nonstimulants like atomoxe

  22. source web page
    Adult ADHD Treatment

    Adults with ADHD often struggle more than children for one reason: the childhood safety measures that helped them overcome their inattention and impulsivity to be socially supervised, despite the mundane demands of everyday life no longer exist. Fortunately, behavioral psychotherapy with medication can aid.

    Psychotherapy is a standard part of coun

  23. Sunwin
    Cá cược là một hình thức giải trí được yêu thích và ưa chuộng 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 bóng đá là một thị trường phát triển mạnh mẽ hiện nay. Những người tham gia có thể đặt cược vào các trận đấu thể thao để thưởng thức trò chơi. Để có cơ hội chiến thắng, bạn chỉ c

  24. automated vacuum cleaner
    Robot Vacuum Cleaner Reviews

    The best robot vacuums will cover a lot of ground in one cleaning session, due to their long battery life and large dustbin. Choose a model that has a dock that can self-empty and recharge between cleaning sessions.

    Avoid models with a rudimenta

  26. 債務舒緩服務
    在今天錯綜複雜貨幣景觀，許多個人找到自己面對令人沮喪債務重組。這憂慮能真的有不可逾越，導致壓力和焦慮和不確定關於未來。謝天謝地， 有選項隨時可用那可以援助減少這經濟的壓力。之中這些都是IVA財務債務重組，DRP債務重組寬慰，個人破產， 和不同的借用選擇。每個途徑提供獨一無二的機會和挑戰，做重要的為了人們到理解他們的選擇完全地。

    私人的自願安排（（伊瓦斯） 區域首選方法對於那些尋找到重組他們的債務。一個IVA是一個官方的協定介於兩者之間一個具體的和他們債權人，允許這借款人到償還一個部分他們欠的放期間，通常五年。這選擇不是僅有的補給品一個有組織支付計劃然而也用途保護從破產程式。經過參加一個個人自願協議，人們

  27. what is the best fridge freezer brand
    How to Choose the very best Fridge Freezers

    GE fridge freezers get top marks from reviewers for their sturdy construct, temperature guideline and frost-free style. prevents the freezer developing ice, saving space and effort when thawing.

    It’s likewise free

  28. https://kuwin.gallery/

    Canada has what generally call a national sales tax or a price added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Canadian trades.

    If loud office spaces hair is thick and long use small scissors to reduce the hair to upto a quarter of inch. Helps avoid blunting and clogging the razor too simply.
    <b

  29. Pastor Chris
    Introduction

    Pastor Chris Oyakhilome is known as a well-known Nigerian preacher and televangelist is well-known. He is the founder of the Believers’Loveworld Incorporated also known as Christ Embassy. He is well-known for being devoted to his family as well as his unwavering dedication to his family’s spiritual development. Pastor Chris Oyakhilome’s ded

  30. pallet wood for sale
    Where to Buy Pallets Near Me

    Pallets are used to transport most of the hardware and furniture that is delivered to stores. You can find quality pallets by contacting newspaper companies or builders. Develop a rapport with them and ask for some of their used pallets.

    Local liquidat

  31. https://www.cityofcovingtonla.com
    Tips regarding playing online slot game titles or strategies for being successful a new jackpot? We would like to consider them all tips because there will be not any sure fire approaches to win a goldmine. If there were being, everyone would be winning most the time. These are generally a good few tips that most on the internet gamblers should take into account before lodging their challenging earned income in t

  32. https://kinogo.host/37141-podchinenie.html
    К тому же, новые коллеги встречают Коваля с неприязнью и не понимают его слишком импульсивных и прямолинейных методов работы. Но только Коваль, со своей решительностью, отчаянностью и связями в бандитских кругах, может задержать неуловимого киллера, известного как Архитектор. Кинематограф зародился чуть больше века назад и с каждым годом кинопродукты становятся качественней и лучше, хоть и не все

  33. media wall with bioethanol fireplace
    Recessed Wall Mounted Bio Ethanol Fire

    Whether you choose to hang a bio ethanol fireplace on the wall or build it into a recess, you ought to initially consider its load-bearing capacity and fire-resistance. It should also be put on a non-combustible surface such as concrete backer bo

  34. media wall with bioethanol fireplace
    Recessed Wall Mounted Bio Ethanol Fire

    Whether you pick to hang a bio ethanol fireplace on the wall or build it into a recess, you need to first consider its load-bearing capability and fire-resistance. It ought to also be put on a non-combustible surface area such as concrete backer board, HardieBacker, Durock, or Wonderboard.

    Beyond that, it is

  35. robot vacuum cleaner cheap
    Best Robotic Mop and Vacuum Combos

    The majority of robot vacuum and mop combinations can be customized using an application that is specifically designed for. You can save maps of your home, create cleaning schedules and select mopping modes. You can also alter the suction power and fine tu

  36. https://kinogo.host/31526-igra-prestolov.html
    Начебто посміялися в кадрі з власної кмітливості, але за цим чути цвіркунів. Vodafone надасть безкоштовно своїм абонентам 1000 хвилин для дзвінків по Україні та всередині мережі та 10 ГБ мобільного трафіку для доступу до мережі. Бонуси матимуть абоненти Vodafone, які використовують зв’язок на умовах передоплати. Також оператор забезпечив безкоштовним мобільним зв’язком та інтернетом своїх а

  38. treatment of adhd in adults
    Treating ADHD With Stimulant Medication

    Stimulant drugs like methylphenidate, (Ritalin Concerta, Ritalin), and amphetamines (lisdexamfetamine, Adderall and Vyvanse), help people control their thoughts and focus. Atomoxetine is a nonstimulant that increases brain neurotransmitters dopamine and norepinephrine.
    <br

  39. best dual range cookers
    How to Clean a Dual Range Cooker

    A dual range cooker is a combination of the advantages of both an gas and electric cooker. It provides precision when baking and fast stovetop adjustments, making it ideal for those who love to explore new recipes.

    Gas cooktops provide preci

  41. https://christembassy.org/
    Introduction

    Pastor Chris Oyakhilome of Nigeria is a respected pastor and televangelist. He’s also the creator of the Believers’ Loveworld Incorporated (also called Christ Embassy). Pastor Chris Oyakhilome He is well-known for being committed to his family as well as his unwavering commitment towards the spiritual growth of his family. Pastor Chris Oyakhilome’s commitment to his family’s p

  42. best price range cookers dual fuel
    Dual Fuel Range Cooker Reviews

    Upgrade your kitchen with a dual fuel range cooker that provides an incredibly responsive cooking temperature control and precise heating in the oven. These models are designed for homeowners who want to bake with precision and cooking.

    Examine y

  44. Pastor Chris Oyakhilome
    Many are interested in the life of Pastor Chris Oyakhilome. The pastor has a fascinating background, a flourishing ministry along with his family, and even his ex-wife Anita. chris-oyakhilome-45.technetbloggers.de/whats-the-situation-with-pastor-chriss-new-spouse-3f-what-do-we-know-following-the-separation-from-anita-1734249892 This is the complete

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

    This method has tripped a revolution in bodybuilding and weightloss globally, and contains now end up being the gospel of countless individuals’s pursuit of health and beauty.Today, why don’t we expose the reality behind this myth in the remote Nagano, Japan, there is a mystical destination known as the “spring of youth”, where

  47. wall hung bio ethanol fire
    media wall with bioethanol fireplace hung bioethanol fires offer the opportunity to take pleasure in real flames and warmth with little or no construction or installation included. They are also easy to run.

    Ethanol wall fireplaces can be recessed into walls, however the material in which they are installed mu

  48. wyciszanie ścian
    W dzisiejszym świecie, w którym hałas staje się coraz bardziej powszechny, wyciszenie przestrzeni życiowej stało się kluczowym elementem komfortu domowego. Wyciszanie ścian to temat, który zyskuje na znaczeniu, szczególnie w miastach, gdzie dźwięki ulic, ruch samochodowy i hałasy sąsiadów mogą zakłócać nasz spokój. Każdy z nas pragnie mieć swoje miejsce, w którym można się zrelaksować i odpocząć o

  49. robot vacuums cheap
    Robot Vacuum That Vacuums and Mop

    Robot vacuums that mop with navigation tools move around your home, suctioning pet hair, crumbs and dirt to a dustbin on hard floors and low-pile carpet. Many robot vacuums feature features like boundary strips to prevent them from straying into areas you do not want them to. Some can even can climb (slowly!) stairs.

  50. Pastor Chris Miracles
    A Wonderous Lineage

    Reverend Chris Oyakhilome is the spiritual father to millions of people. Christ Embassyis a Christian family who spread love, hope, encouragement. As all supportive families, they are close in many ways. There are approximately 140 Christ Embassy

Leave a Reply

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