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.

29,738 thoughts on “Department Store Industry”

  4. Understanding SAP Basis:
    SAP Basis, often referred to as the “technical heart” of SAP systems, encompasses a range of components essential for system administration and optimization. It serves as the underlying framework for various SAP applications, ensuring seamless integration, robust performance, and data reliability across the enterprise.

    Core Components of SAP Basis:
    a. SAP Application Server: Facilitates communication between users and SAP systems, handling tasks such as user authentication, session management, and workload distribution.
    b. Database Interface: Establishes connectivity between SAP applications and database systems, ensuring efficient data storage, retrieval, and management.
    c. System Monitoring Tools: Enables real-time monitoring of system performance, resource utilization, and application health, allowing for proactive issue resolution and optimization.
    d. Transport Management System (TMS): Streamlines the process of deploying changes and updates across SAP landscapes, ensuring consistency and integrity of system configurations.

    Importance of SAP Basis Optimization:
    Optimal performance of SAP Basis is critical for maximizing the efficiency and effectiveness of SAP implementations. By optimizing SAP Basis, organizations can:
    a. Enhance System Stability: Proactively address performance bottlenecks, minimize downtime, and ensure uninterrupted business operations.
    b. Improve Scalability: Scale SAP environments to accommodate growing business needs, without compromising performance or reliability.
    c. Boost Productivity: Streamline administrative tasks, automate routine processes, and empower users with faster access to critical information.
    d. Reduce Total Cost of Ownership (TCO): By optimizing resource utilization, minimizing maintenance efforts, and improving system efficiency, organizations can lower the overall TCO of SAP deployments.

    Best Practices for SAP Basis Optimization:
    a. Regular Performance Monitoring: Implement robust monitoring tools to track system performance metrics, identify areas for improvement, and proactively address potential issues.
    b. Patch and Upgrade Management: Stay current with SAP patches, updates, and version upgrades to leverage the latest features, enhancements, and security fixes.
    SAP BASIS institutes in Hyderabad

  5. Improve your knowledge of music online! StyleMind Lessons is a renowned music academy in Atlanta serving community in music education for the last 28 years. Our tutoring platform offers one-on-one lessons with the best online music tutors. Learn at your comfort and pace from world-class instructors. You can take live group lessons anytime, anywhere. Contact us today to book your seat

  6. Looking to Buy Vidalista Black 80 Mg in England? Look no further! Vidalista Black 80 mg is a popular medication used to treat erectile dysfunction. You can purchase it from reputable online pharmacies or consult your healthcare provider for a prescription. Ensure to verify the authenticity of the product and the credibility of the seller before making your purchase. Enjoy discreet and convenient delivery to your doorstep.

  7. Thái Nhật Minh là CEO của nhà cái K8cc kể từ khi thành lập. Tuổi trẻ tài cao, với suy nghĩ không ngừng đổi mới, sáng tạo và phát triển, CEO Nhật Minh đã thành công đưa K8cc gia nhập liên minh OKVIP – liên minh cá cược hàng đầu hiện nay. K8cc đã thành công sánh vai cùng những nhà cái hàng đầu châu Á như 789bet, New88, Hi88, Jun88,…

  8. The up police constable mock test free are the mimic practice set created to help aspirants in the UP Police recruitment Procedure. These sets help candidates understand the real exam experiences, and the exam pattern and get familiar with the format of questions. Mockers provides free mock tests for UP Police exam preparationUP Police Constable Mock Test free

  9. You can Buy Tadalafil Vidalista Ct 20mg in Alaska from various online pharmacies or local drugstores with a prescription. Ensure to consult with a healthcare professional before taking any medication, as they can provide guidance tailored to your specific needs and medical history. Always follow the prescribed dosage and usage instructions for safety and effectiveness.

  10. stomach noises , the association of bowel cancer with stomach noise, is not usually considered a direct symptom of cancer, but in some cases it can be a factor to watch out for. Bowel cancer, also known as colorectal cancer, is a serious medical condition that affects the large intestine (colon) or the rectum.

  12. เล่นเกมสล็อตxo flow1234 ลุ้นรางวัลนับแสนได้ด้วยเงินขั้นต่ำแค่ 1 บาทเท่านั้น ใครที่ชอบเล่นลุ้นรางวัลเยอะ ๆ ด้วยเงินลงทุนน้อย ๆ จะต้องถูกใจ ทุกเกมจะใช้เงินในการเล่นขั้นต่ำเพียงแค่เบทละ 1 บาท อัตรารางวัลตอบแทน

  14. SV388 là sân chơi đá gà trực tuyến, casino online lớn nhất hiện nay. Với chính sách cược, thưởng hấp dẫn, nhà cái này đang được cược thủ nồng nhiệt săn đón.
    #sv388 #gavietsv388 #gavietsv388today

  15. สล็อตไพ่นกกระจอกภาคต่อ easyslot ที่ปรับรูปเเบบใหม่ ทำเงินได้ตรงใจกว่าเดิม เกมแตกดี No.1 ที่เเตกถี่จนคนโอนเงินยังอึ้ง เเถมยังเเตกสูงสุกพุ่งไปถึงสองเเสน ในไม่กี่รอบปั่นเท่านั้น ถ้าท่านอยากได้เกมเล่นง่าย จ่ายโบนัสปัง เลือกเล่นเกมนี้ เงินดีไม่ผิดหวัง 100%

  16. There are many tools available to help you write CSS and incorporate it into your site. Most IDEs for web development, tools like Dreamweaver and Visual Studio, come with CSS authoring and integration built right in. There is also a wealth of information online about CSS.

    istana168

  18. เล่นสล็อตทุนต่ำกำไรปัง queenslot แค่สมัครก็รับโปรโมชั่นสล็อตไปเลยทันที และกิจกรรมมากมาย เท่านั่นยังไม่พอท่านสามารถมาร่วมลงทุนกับเกมพนันออนไลน์อื่นๆ ก็สามารถเล่นได้ ลงทุนต่ำ กำไรสูงแต่สามารถที่จะทำเงินหมื่นได้ เเต่ละเกมยังมีรางวัลเเจ็คพอต เเละ สปินฟรี ให้อีกด้วย บอกเลยว่าห้ามพลาดเด็ดขาด

  19. DEBET, một nhà cái cá cược trực tuyến tại Việt Nam, chuyên cung cấp đa dạng các thể loại game cá cược trực tuyến như Thể Thao, Xổ Số, Game Bài… Trang web DEBET.EC đã được chính phủ Philippines cấp giấy phép cá cược hợp pháp, đảm bảo tính an toàn và uy tín cho người chơi. 

  20. DEBET, một nhà cái cá cược trực tuyến tại Việt Nam, chuyên cung cấp đa dạng các thể loại game cá cược trực tuyến như Thể Thao, Xổ Số, Game Bài… Trang web DEBET.EC đã được chính phủ Philippines cấp giấy phép cá cược hợp pháp, đảm bảo tính an toàn và uy tín cho người chơi. 
    debet#debet.ac#debet.casino#nhacaidebet#dangkydebet

  22. เกมสล็อตที่มีความสนุกและเทคโนโลยีสูง betflix285 เกมสล็อตที่มีภาพและเทคโนโลยีที่ล้ำสมัย มักมีฟีเจอร์, โบนัสที่น่าสนใจ ที่จะเพิ่มความสนุกในการเล่น

  23. Data science certifications are programs that provide formal recognition of your skills and knowledge in the field of data science. These certifications can enhance your career prospects and validate your expertise. Some popular data science certification programs include:

    IBM Data Science Professional Certificate: Offered on platforms like Coursera, this program covers data science tools, methodologies, and projects.

    Microsoft Certified: Azure Data Scientist Associate: This certification validates skills in designing and implementing machine learning models on Azure.

    Google Data Analytics Professional Certificate: This program covers data analysis using tools like Google Analytics and Google BigQuery.

    Certified Analytics Professional (CAP): A vendor-neutral certification that validates your analytics expertise across domains.

    SAS Certified Data Scientist: Validates skills in data manipulation, visualization, and machine learning using SAS tools.

    DataCamp Career Tracks and Skill Tracks: DataCamp offers various tracks that cover specific data science skills, such as Python, R, machine learning, and data visualization.
    https://www.sevenmentor.com/data-science-classes-in-nagpur

  25. Looking for top-notch end of lease cleaning services in Melbourne, Australia? Look no further than Ecobond Cleaning! Our dedicated team specialises in delivering thorough and professional end of lease cleaning solutions tailored to meet the highest standards of property managers and landlords.

  26. default IP address or the mywifiext.net address. Through these addresses, you can access the login page and log in successfully. (weight loss) To set up the extender through the WPS button Here I am providing you high quality da pa backlinks for your benefit.

  27. Thanks for sharing this wonderful content. its very interesting. Many blogs I see these days do not really provide anything that attracts others but the way you have clearly explained everything it’s really fantastic. There are lots of posts But your way of Writing is so Good & Knowledgeable. keep posting such useful information and have a look at
    “Business Analyst Course In Hyderabad

  28. Thanks for sharing amazing post. I am here to share about StartFleet. Ready to kickstart your business journey in the USA? Look no further! Introducing a hassle-free and remote process to establish your US company from the comfort of your home or office.

    With our streamlined service, you can have your US company, bank accounts, debit cards, Stripe, and PayPal accounts set up in no time. Say goodbye to the complexities of traditional setup methods and embrace the simplicity and efficiency of our platform.

  29. Trang web DEBET.EC đã được chính phủ Philippines cấp giấy phép cá cược hợp pháp, đảm bảo tính an toàn và uy tín cho người chơi.#debet#debet.ac

  32. Looking to elevate your dental practice’s online presence? Look no further than SDAD Technology, the premier Dental SEO Agency . With a focus on driving targeted traffic and increasing patient inquiries, our expert team specializes in optimizing dental websites for search engines. From keyword research to content optimization and local SEO strategies, we tailor our approach to meet the unique needs of your practice. Trust SDAD Technology to boost your visibility in search engine results and attract more patients to your dental clinic.

  39. Let’s start your unforgettable adventure with our Best Vietnam Motorcycle Tours Operator. Customize your entire travel itinerary and embrace freedom.
    #vietnammotorcycletours #vietnammotorbiketours #vietnameasyridertours #easyridertours #selfridingmotorcyclevietnam #motorbiketoursaigontohanoi
    GG Site: https://sites.google.com/view/vietnamtwowheels/ 

  40. SV388 là nhà cái đá gà trực tuyến, casino hàng đầu Việt Nam và Châu Á. Cùng tham gia đăng ký tài khoản để nhận ưu đãi lên đến 300%.
    #sv388 #gavietsv388 #gavietsv388today

  43. There are many advantages to hiring a Lahore escort . First of all, it’s easy to book an escort through an e-mail. Second, you’ll be able to choose from a huge list of escorts,

  45. When it comes to finding reliable alternatives to FirstRowSports, there are a few websites that uphold the same level of quality and diverse sporting events. FirstRowSports Alternatives, indeed, stands out as an impressive platform to stream live sports globally.

  48. 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. Digital insurance marketing teams face the challenge of distinguishing their brands and engaging with customers. The indirect nature of customer outreach, through financial advisors and institutions, adds complexity to marketing efforts.

    Moreover, the intangible benefits of insurance make communicating its value proposition more challenging. Digital marketing tools offer a solution, enabling precise audience targeting and result measurement within tight budgets.

Leave a Reply

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