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.

277,896 thoughts on “Department Store Industry”

  3. Pastor Chris Oyakhilome
    A Wonderous Lineage

    The Man Of God Reverend Chris Oyakhilome has millions of followers. Christ Embassy is a huge Christian family spreading messages of hope, love and inspiration. Like all supportive families, they’re close in numerous ways. There are 140 branches of Christ Embassy on five continents. Many ask, “Who are the m

  4. Pastor Chris
    A Wonderous Lineage

    The Man, Reverend Chris Oyakhilome, the Man of God is the spiritual father to millions of people. Christ Embassy, a large Christian family, spreads messages of hope, love, and encouragement. They’re just like all families in that they are close in many different ways. There are some 145 branches of Christ Embassy on five contine

  7. selleck kinase inhibitor
    The risk of motion sickness is considerably higher in autonomous vehicles than it is in human-operated vehicles. Their introduction will therefore require systems that mitigate motion sickness. We investigated whether this can be achieved by augmenting the vehicle interior with additional visualizations. Participants were immersed in motion simulations on a moving-base driving simulator, where they were ba

  8. wall mounted ethanol fireplace canada
    A Wall Mounted Ethanol Fire

    A wall mounted ethanol fire is an excellent choice for those who desire to conserve space and include a modern-day touch to their home. This kind of fireplace is not only simple to set up however likewise requires no chimney or gas.

    Before beginning the setup procedure, it is essential to exa

  9. NF-κB inhibitor
    This study investigated the idea that when one recalls past episodes, that the content of those memories will activate additional episodic memories with like content, and such memories will then have the potential of surfacing in subsequent acts of involuntary and voluntary recall. We tested the episodic content priming hypothesis in two experiments. In Experiment 1, priming group participants first re

  10. https://www.fileviewpro.com/en/file-extension-js/
    FileViewPro is an comprehensive file viewer that aims to remove the inconvenience of managing a multitude of file types, notably the widely used but often challenging JavaScript (JavaScript) files. Whether or not you are manipulating multimedia, documents, or coding files like JS files, FileViewPro delivers a comprehensive solution, making easy the process of opening, viewing, a

  11. robot vacuum sale
    Top Rated Robot Vacuums

    A robot vacuum will keep your floors tidy enough to decrease the frequency of hoovering manually. Look for one that offers an easy navigation, can clean stairs and corners and also has a large dust bin that needs emptying only periodically.

    You can also find models that clean and char

  12. selleck kinase inhibitor
    Results indicated a temporal increase of anxiety, depression and stress scores during the COVID-19 lockdown. Factors such as age, consumption of information about COVID-19 and physical activity seem to have an important impact on the evolution of psychological symptoms.

    Results indicated a temporal increase of anxiety, depression and stress scores during the COVID-19 lockdown. Facto

  13. check details
    Levels of other tested cytokines were similar between patients and healthy subjects. CONCLUSION IFN-γ and IL-6 are proinflammatory cytokines that are strongly related to autoimmunity. Despite being limited by the small sample size, our data offer new insight into a better understanding of the pathogenesis of CSU and support the need for further investigations. © 2020 The International Society of Dermatology.The bior

  14. Voruciclib supplier
    We also show that water exchange in the S3 state is governed by a different equilibrium than in S2, and that the exchange of the fast substrate water in the S2 state is unaffected by Ca/Sr substitution. These findings support that (i) O5 is the slowly exchanging substrate water, with W2 being the only other option, and (ii) either W2 or W3 is the fast exchanging substrate. The three remaining possibilities fo

  15. agen domtoto
    The entertainment value of Domtoto prolongs beyond the gameplay itself. Many players enjoy the thrill of expecting outcomes, planning their relocations, and celebrating their successes. The adrenaline thrill associated with placing wagers and the satisfaction of accomplishing a well-earned win are integral parts of the experience. For some, the platform also functions as a method to unwind and g

  16. automatic vacuum
    The Best Robot Vacuum Cleaner

    Robot vacuums can make the chore of vacuuming a bit less painful. Today’s models also mop and climb (small) steps.

    They have a tiny dustbin that they empty themselves, and some of them can be operated by a smartphone app instead of a

  20. giá bình ắc quy 12v 60ah
    Trong khi, cũng nên mò hiểu về chỉ số khởi động CCA, độ cao thấp bình nhằm tách trường hợp xe cộ phát động kém cỏi hay ko lắp đặt vừa vào khay đựng. Ắc quy tên thương hiệu Delkor thích hợp dùng cho xe pháo vận chuyển, xe du ngoạn và tàu thuyền có nhu yếu di gửi thông thường xuyên. Ưu điểm của loại ắc quy này là hiệu suất cao và cung cấp năng lượ

  21. best freezer brands uk
    The Leading Five Names of Fridge Brands

    Whether you’re buying a fridge with energy performance, sustainable features or a wise style, it pays to weigh the credibility of fridge brands versus your particular needs and choices.

    GE, for example, is understood for its dependability and uses designs that fit numerous price points. Meanwhil

  22. AS601245 order
    Single nucleotide polymorphisms (SNPs) in Pharmacogenetics can play an important role in the outcomes of the chemotherapy treatment in Neuroblastoma, helping doctors maximize efficacy and minimize toxicity. Employing AgenaBioscience MassArray, 96 SNPs were genotyped in 95 patients looking for associations of SNP with response to induction therapy (RIT) and grade 3-4 toxicities, in High Risk patients. Associations of

  23. Selleckchem Ataluren
    cancer-related features of energy metabolism could be detected in both types of specimens. On the other hand, in contrast to RT-induced changes observed in serum metabolome, this pilot study did not reveal a specific radiation-related pattern of exosome metabolites.

    cancer-related features of energy metabolism could be detected in both types of specimens. On the other hand, in contrast to RT-i

  24. Pastor Chris Oyakhilome worth
    After the pastor Chris Oyakhilome and Anita Ebhodaghe’s divorce, rumors about marriage remarriage or a new spouse have surfaced.

    In 2014 the story of a love affair that appeared to be a retelling from a fairytale came an end. After 23 years of marriage, 2 kids and a joint global mission of spreading the

  25. automatic vacuum
    The Lifespan of a Robot Hoover

    A top-quality vacuumer and mop that avoids (most) obstacles, works on rugs and does an excellent job at cleaning. can use the app to schedule regular cleanings, send it to specific areas or rooms, and set zones that are not allowed to be used.

    Keep this robot in top shape by regularly cleaning the sensors and cameras by emptying

  26. Full Post
    For ADHD

    Psychosocial therapy is the primary treatment for adding. The medications can include stimulants such as amphetamine and methylphenidate, as well as nonstimulants like atomoxetine, viloxazine, guanfacine, and clonidine.

    The use of stimulants should not be used in patients

  27. Pastor Chris Oyakhilome
    Introduction

    Pastor Chris Oyakhilome is a well-known Nigerian Pastor and televangelist. He is the founder, Believers’ loveworld Incorporated, also known by Christ Embassy. His dedication to his family, and his constant commitment to encouraging his spiritual growth are what make him so special. Pastor Chris Oyakhilome’s dedication to his family’s prosperity is a wonderful

  28. sex dolls
    Throughout history, human beings have sought companionship and intimacy in various forms, often driven by a deep-seated need for connection. In recent years, one of the most intriguing developments in this search for companionship has come in the form of sex dolls. These lifelike creations have evolved from simple, rudimentary figures into sophisticated, highly customizable products that can cater to

  29. Mocetinostat cost
    Moreover, PC treatment improved gut dysbiosis, which reversed the metabolite dysfunction of bile acid. These findings reveal that PC is a promising therapeutic agent, which might ameliorate the cognitive function of AD by restoring the imbalance of Aβ production and clearance and gut microbiota dysbiosis.

    To evaluate the effectiveness of a psycho-educational intervention for shou

  30. FAQs
    Understanding Chihuahua Coat Types

    Brushing Your Chihuahua’s Coat

    Bathing Tips for Your Chihuahua

    Trimming Your Chihuahua’s Nails

    Cleaning Your Chihuahua’s Ears

    Dental Hygiene for Chihuahuas

    Whe

  31. best low bunk beds
    The Best Bunk Beds For Teenagers

    Bunk beds are much more than frames, slats and ladders. They are pods of imagination and corners of security.

    Many bunks offer clever storage options that make life easier for parents. Look into a bed with drawers to stash

  32. Pastor Chris Family
    Introduction

    Pastor Chris Oyakhilome from Nigeria is a well-known preacher and televangelist. He is the founder of the Believers’ Loveworld which is which is also known as Christ Embassy. He is well-known for his dedicated to his family and his unwavering dedication to the spiritual growth of his family. Pastor Chris Oyakhilome’s commitment to his family’s future is an example of how a

  33. CX-4945 manufacturer
    By virtue of multitunable spin structures upon designing the π-electron topologies, phenalenyl-based nanographenes are of substantial interest in fundamental science and for potential applications in spintronics. Heptauthrene, as one of the well-known phenalenyl diradicals, is composed of one benzene-fused bisphenalenyls in mirror symmetry and expected to have a triplet ground state. However, the

  35. mln0128 inhibitor
    By analysing Populus x canescens isoprene synthase (PcISPS) promoter reporter flowers, we discovered PcISPS promoter activity in certain parts of the roots such as the vascular muscle, the differentiation zone plus the root limit. Remedy for roots with auxin or salt increased PcISPS promoter task at these websites, particularly in the developing lateral roots (LR). Transgen

  36. wygłuszanie ścian
    W dzisiejszych czasach hałas stał się nieodłącznym elementem życia w mieście. Samochody, budowy, sąsiedzi – wszystko to może negatywnie wpływać na nasze samopoczucie oraz jakość snu. Wyciszanie mieszkań stało się więc ważnym tematem, z którym boryka się wiele osób pragnących stworzyć komfortową przestrzeń do życia. W tym artykule przyjrzymy się skutecznym metodom, które pozwolą Ci cieszyć się cisz

  37. deep comfy couch
    How to Pick a Comfortable Take Out Couch

    If the dreadful bar (the metal system where the couch folds out) is harming your back, attempt a foam topper. It nestles the mattress, adds pressure relief, and creates a smoother sleep surface.

    Interior designer Michelle Castagna states to look for a tough frame and upholstery that feels comfortable. Also, think about the s

  38. Pastor Chris Oyakhilome worth
    A Wonderous Lineage

    The Man of God Reverend Chris Oyakhilome (The Man of God), is the spiritual father to thousands of followers. Christ Embassy is an immense Christian family who spreads messages of hope, love and inspiration. They are supportive in many ways, just like all loving families. There are

  39. situs toto macau
    Permainan togel online semakin populer di kalangan pemain di seluruh dunia. Dengan berbagai jenis taruhan yang tersedia, para pemain dapat memilih jenis permainan yang sesuai dengan gaya bermain dan strategi mereka. Namun, sebelum memulai permainan togel online, penting untuk memahami berbagai jenis permainan yang ada agar Anda bisa memilih yang paling sesuai dengan preferensi dan tingkat pengalaman Anda.

  41. VX-445 in vivo
    The effect of snoring on the bed partner can be studied through the evaluation of in situ sound records by the bed partner or unspecialized raters as a proxy of real-life snoring perception. The aim was to characterize perceptual snore events through acoustical features in patients withobstructive sleep apnea (OSA) with an advanced mandibular position.

    Thirty-minute sound s

  42. best l shaped bunk beds
    7 of the Best Built in Bunk Beds for Your Kids’ Rooms

    Bunk beds are an enclave of Americana. They bring back memories of sun-drenched beach days and vacation homes on lakes.

    Most bunks have a fixed ladder that can be straight or angled. Angled ladders are more comfortable to climb but take up more

  43. PF-06424439 cell line
    Recommendations for dietary fibre intake in patients with inflammatory bowel disease are highly variable. Despite the potential benefits of prebiotic fibres on the gut microbiome, many patients with inflammatory bowel disease follow a low fibre diet. The present study comprehensively evaluated intakes of total and prebiotic fibres in patients with inflammatory bowel disease, aiming to determine the adequac

  44. reconditioned dual fuel range cookers
    Dual Fuel Range Cooker

    If you’re looking for a responsive temperature control on your cooktop or even consistent baking in the oven, a dual fuel cooker will provide both. To find out more, schedule a showroom appointment with Clarke to see these professional ranges in large kitchens

  46. GLPG0187 in vivo
    Local duplication was shown to play a predominant role in gene expansion in papaya, castor, and jatropha, which is only confined to the Lhcb1 group. By contrast, WGD plays a relatively more important role in cassava, arabidopsis, and other Brassicaceous plants. Further comparison of Brassicaceous plants revealed that loss of the SEP6 group in arabidopsis is lineage-specific, occurring sometime after papaya-arabido

  47. BMS986020
    In the present study, we investigated various biochemical, clinical, and histological factors associated with bone metastases in a large cohort of pre- and postmenopausal women with breast cancer. Two hundred and sixty-one consecutive women with breast cancer were included in this study. Breast adipose tissue specimens were collected during surgery. After having established the fatty acid profile of breast adipose tiss

  48. Pastor Chris Family
    Following Pastor Chris Oyakhilome and Anita Ebhodaghe’s divorce, rumors about getting married again and having a new partner are circulating.

    A love story that appeared like it came straight from the pages of a fairytale came to an end in 2014. After 23 years together with two children, and a global mission to spread the message of God, pas

  49. auto vacuum
    The Benefits of Robot Vacuum Cleaners

    A robot vacuum can make the task of vacuuming your floors simpler. The most effective models will sweep the floor.

    The cheapest robot cleaners use rudimentary bump navigation, but more advanced models can map out your room by using camera

  50. AMG 232 datasheet
    The survival rate from breast cancer is lowest in African countries and the distribution of breast self-examination practice of and its determinants are not well investigated in Ethiopia. Therefore, this systematic review and meta-analysis was designed to determine the pooled prevalence of breast self-examination and its associated factors among women in Ethiopia.

    Preferred

Leave a Reply

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