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.

309,610 thoughts on “Department Store Industry

  1. adhd untreated in adults
    Adult Treatment For ADHD

    Adults who are not treated for ADHD frequently face difficulties in their relationships and careers. They are also at a higher-risk for certain mental conditions like depression and anxiety.

    Treatment options can help those with ADHD gain control over their lives and utilize their strengths. Treatment options i

  2. https://turnlocked.com/
    Bandar judi online makin hari makin banyak. Pastinya banyak bettor dapat bertambah ringan buat memutuskan serta mendapati agen taruhan judi terbaik. Penyaringan saja link website agen taruhan online terpercaya dan terbaik buat mendapatka bermacam keuntungan. Terutamanya dalam masalah ini banyak bettor harus memahami berkaitan penyeleksian agen taruhan dapat dipercaya biar tidak terjerat agen abal abal.

    Dengan masuk

  3. Final Thoughts on Raising a Chihuahua
    Chihuahua 101: Your Best Manual to Raising Content and Healthful Puppies

    Chihuahuas are Probably the most beloved little Doggy breeds, cherished for their exclusive temperament, intelligence, and loyalty. long hair chihuahua puppies for sale near me if you happen to be contemplating Chihuahuas available for purchase or have presently welcomed a Chihuahua Pup into your life, It is reall

  4. best wall mounted ethanol fireplace
    Wall Mounted Ethanol Fireplace Canada

    Ethanol fireplaces are simple to fuel, spark, snuff out, and keep. Merely pour Regal Fuel into the burner( s), spark with a long grill-style lighter, and delight in dancing orange flames and extra heat.

    They don’t need chimneys, ar

  5. gif buongiorno
    Iniziare la giornata con un sorriso è fondamentale per affrontare al meglio le sfide quotidiane. Ogni mattina ci offre l’opportunità di rinnovare i nostri obiettivi e ritrovare la motivazione. Un caloroso “buongiorno” può fare la differenza, non solo per noi stessi, ma anche per chi ci sta attorno. Immagini e gif divertenti possono aggiungere un tocco di gioia e positività ai nostri saluti, renden

  6. find your perfect pair of earrings today
    If you’re on the hunt for jewelry that blend classiness, modernity, and a bold sense involving style, Statement Connection has you included. With a selection that caters to all tastes, you’ll find the excellent pair to raise your look and make a lasting feeling. Whether you’re looking for subtle designs or even bold statement items, their range presents something for every person.
    <br

  7. dual-fuel range style cookers
    Choosing a Range Dual Fuel Cooker

    The addition of a dual fuel range to your kitchen can add value to your home and allow you to host. It requires a gas line and an electrical outlet, which is why it should be installed by a licensed professional.

    The

  8. bio ethanol fireplace for media wall
    In-Wall Bioethanol Fires

    Unlike gas and electric fires that require an external connection to energies, bioethanol fires run solely on fuel. This makes them a lot simpler and cheaper to set up than their equivalents.

    Ethanol fireplaces don’t require a chimney or flue, and they can be moved from room to space as your spatial needs alter. They’re

  9. http://www.pgzeed
    Are you ready to get in to the thrilling planet of PGZEED and even unleash your potential for big gains all the perks? Whether you will be a seasoned player or new to be able to the game, this guide is designed to be able to offer the insights and strategies you want to excel. By understanding the inches and outs involving PGZEED casino features to mastering PGZEED slots, we will cover everything necessary for maximizing your current betting expe

  10. navigate here
    Selecting a 3-Seater Sofa Brown Fabric

    We all have that friend sofa that offers comfort when you need it, rest when you’re worn out and friendly assistance at the drop of a hat. Our brown fabric sofas provide a warm and inviting ambiance with durable luxurious upholstery and strong eucalyptus wood frames.

    <

  11. thor311
    dua kiat baik menjadi pemenang slots online secara memberikan kepuasan. bercakap tentang slots online pastinya dapat mengulas banyak obyek. begitu banyak kajian perihal slots online yang sekarang ini tengah ternama di golongan penggemar judi online. salah satunya kajian menarik terkait slots online adalah jumlahnya kiat yang bisa dipakai buat meraih kemenangannya.

    tapi biasanya dari banyak pemain tidak perhatikan sejumlah cara hin

  12. Guava tree
    Consider components corresponding to local weather suitability, tree size, fruit taste, seed content, and illness resistance when choosing a tangerine variety. Fill the opening halfway with the soil you eliminated, gently patting it down to get rid of any air pockets. Water the tree thoroughly to settle the soil and ensure moisture reaches the roots. Gently place the tangerine tree in the heart of the opening, ensuring it sits on the simi

  13. Nutrition and Diet
    Chihuahua one hundred and one: Your Best Tutorial to Elevating Content and Wholesome Puppies

    Chihuahuas are one of the most beloved little Pet dog breeds, cherished for his or her special identity, intelligence, and loyalty. Irrespective of whether you might be taking into consideration Chihuahuas available for sale or have presently welcomed a Chihuahua Dog into your daily life, it’s essential to underst

  14. quy trình chống mối công trình
    Để thực hiện nay khảo sát và phạt hiện tại côn trùng đối với công trình nằm trong loại A, B và C, người thực hiện muốn có con kiến thức cơ bạn dạng về sệt tính sinh học của các giống và loài mối. Họ cũng muốn có kinh nghiệm thực tiễn trong nghành nghề chống phòng mối, mặt khác có khả năng xác lập chủ yếu xác loại mọt gây hại chủ yếu trên quần thể vực xây dựng công trình. Công trình cấp cho D là những công trình xây dựng kh

  15. cribs convertible white
    Baby Cots That Convert to Young Child Beds

    As your kid grows into a young child, moving them from the cot to a young child bed is a big step. These baby cots that transform to young child beds assist you get ready for this shift with a smooth changeover.

    Our preferred cot, the Mamas & & Pa

  16. 3 piece suites fabric
    Buying a 3 Seat Fabric Sofa

    A 3 seat fabric sofa is the perfect alternative for a modern-day or standard living-room. It is likewise a terrific choice for smaller areas that can not accommodate a large sectional.

    The makeup of a fabric’s thread can inform you a lot abo

  17. convertible crib and changer
    Black Crib Convertible

    While it’s appealing to buy a crib that matches your nursery design, think about opting for something that will grow with your kid. These black convertible cribs can change into young child beds and even daybeds and full-size beds, making them the ultimate value investment.

    T

  18. TEH WANGI, TEH MAWAR, TEH SARI
    Laundry PGSAFTY ialah usaha yang hidup di bidang jasa cuci baju atau pun perlengkapan lain nya , dengan menagcuhkan servis maksimal pada setiap konsumen jasa kami , bersama mendukung para pengguna jasa kami agar dapat melindungi kwalitas bahan tetap bagus

    Laundry PGSAFTY tersedia visi misi yang di antaranya :

    VISI :

    sebagai industri

  19. please click the next document
    Black Dual Fuel Range Cooker

    A black dual fuel cooker provides the responsive temperature control of gas cooktops and constant heating of electric ovens. Explore our range of options to find the ideal model for your kitchen.

    Gas cooktops are popular with cooks who want to control the hea

  20. wyciszenie ścian
    W dzisiejszym świecie, pełnym hałasu i zgiełku, coraz bardziej doceniamy przestrzenie, które potrafią nas wyciszyć i uspokoić. Wyobraźmy sobie ściany, które nie tylko oddzielają pomieszczenia, ale także wpływają na nasz stan psychiczny i samopoczucie. Sztuka wyciszania przestrzeni staje się niezwykle istotna, gdyż pozwala nam na znalezienie chwil wytchnienia w natłoku codziennych obowiązków.

    <

  21. settlements Perth
    A settlement agent is a professional responsible for handling the closing or “settlement” process in tangible estate transactions. Acting as a neutral 3rd party, they manage the legal and administrative details necessary to transfer property ownership from seller to buyer. Settlement agents play an important role both in residential and commercia

  22. fabric 3 piece suite
    A Guide to Fashionable, Elegant, and Stylish Fabric Three Piece Suites

    A fabric three piece suites can be a fashionable, stylish, and stylish clothing that is perfect for a wide array of events. It can also be comfortable, depending upon the fabric and design you choose. Additionally, is ageless and will never ever head out of de

  23. https://qualityran.com/
    kalau ada beberapa pilihan permainan slots online, anda tidak boleh panik karena ada banyak hal yang baik dapat diputuskan. kita harus mencari dan dapatkan satu diantaranya berdasar referensi yang siap atau berdasar pada beberapa kenyataan dan kelebihan yang dijajakan nya. dengan langkah demikian kita akan tambah sangat percaya buat masuk dan bermain di satu diantaranya opsi website agen judi khusus.

    <br

  24. body oils
    Throughout a world that will often feels chaotic and fast-paced, locating moments of harmony and rejuvenation has become essential for the well-being. Spa Ceylon, a brandname that represents the luxury of wellness, offers a delectable variety of massage oils and body oils built to elevate your self-care program. Their products combine traditional Ayurvedic perception with contemporary procedures, buil

  25. best rated robot vacuum
    How Robot Hoovers Can Improve Your Home

    A lot of robots have mapping capabilities that allow them to remember the layout of your home. This lets them avoid hitting obstacles and furniture, allowing them to keep your home cleaner.

    Pick a robot with an extremely long-lasting battery as well as a large dust collection bin. Models that can be recharged and r

  26. Related Web Page

    Selecting a smart vacuum cleaner that has the right features could be an investment in peace and quiet. Some models come with virtual walls that can be placed around entryways to block robots from entering certain areas.

    Empty the dust bin and clean the sensors between cleaning sessions to maintain

  27. best bunk bed brands
    The Best Bunk Beds to Buy

    Bunk beds are large, heavy pieces that need to be put together. You will need a friend to help you with this.

    If you’re short on space, you might consider bunk beds that have built-in storage. The Harriet Bee Tena has drawers under each step to store toys, clothes and other belongings.

    IKEA Mydal

  28. robotic vacuum cleaner
    Best Affordable Robot Vacuum

    If you don’t need smart features such as mapping, no-go zones and self-emptying dust bins This basic robot vacuum offers solid performance for under $300. It is great at cleaning low-pile carpet and hard floors. It also picks up pet hair and other debris.

    It uses random navigation and does not connect

  29. buongiorno
    Iniziare la giornata con il piede giusto è fondamentale per affrontare le sfide quotidiane con energia e positività. Ogni mattina ci offre l’opportunità di rinnovare le nostre intenzioni e di diffondere buone vibrazioni, e un semplice “buongiorno” può fare una grande differenza. In questo articolo, esploreremo una raccolta di immagini e GIF che catturano l’essenza del “buongiorno”, rendendo più piacev

  30. pgbetflix

    เกมพนันสล็อต แมชชีนเป็นแบบอย่างความสนุกสนานยอดนิยมในคาสิ และก็ด้วยการเพิ่มขึ้นของการเดิมพันออนไลน์ สิ่งกลุ่มนี้ก็เลยแพร่หลายมากขึ้นสล็อตแมชชีนเป็นงานที่ชอบทำในเวลาว่างยอดฮิตสำหรับคนที่ถูกใจคาสิโนตั้งแต่แมื่อสร้างสรรค์ขึ้นในช่วงปลายทศวรรษ 1800 ด้วยความเจริญของเทคโนโลยี เกมกลุ่มนี้ได้ไปสู่โลกอินเตอร์เน็ต ทำให้ผู้เล่นได้รับความเบิกบานใจไม่รู้จักจบสิ้นรวมทั้งช่องทางสำหรับการชนะรางวัลใหญ่ อย่างไรก็แล้

  31. rural settlements Perth
    A settlement agent is an experienced to blame for handling the closing or “settlement” process in real estate transactions. Acting as a neutral third party, they manage the legal and administrative details required to transfer property ownership from seller to buyer. Settlement agents play a vital role in both residential and commercial real estate transactions, m

  32. 3 seater fabric recliner sofa
    Include Seating to Living Room With a 3 Seater Fabric Sofa

    A fabric 3-seater sofa supplies a lot of seating for cosy evenings in your home and sociable entertaining. Usually, these sofas can be found in either contemporary or conventional styles which are simple to integrate into various living-room design styles.

    If you’re a fan of Scan

  33. https://fi88.studio

    19. Total revenue generated from your website. A proof of regular revenue from different advertising and affiliate programs will drive the sale price up, yet a significant site content alone will doubtfully develop a good sale if the domain doesn’t meet at a minimum some of your aforementioned criteria from 1 to 10.

    I obviously had no idea what I felt talking almost. If

  34. führerschein legal kaufen
    How to Buy a Motorcycle License

    A motorcycle purchased without a license is legal in a lot of states, however it’s not very practical. You won’t have the ability to test drive the bike and most insurance companies will take additional measures to assess the risk of an unlicensed driver.

    The process of obtai

Leave a Reply

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