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.

573,780 thoughts on “Department Store Industry”

  1. this website
    Convertible Crib With Changing Table

    A short article is a written piece that narrates or shares information. It’s an excellent way to construct credibility and engagement with your audience.

    Quickly converts to a young child bed and full-size bed (bed rails offered indivi

  2. 프라그마틱 공식홈페이지
    Pragmatic Free Trial Meta

    Pragmatic Free Trial Meta is a free and non-commercial open data platform and infrastructure that supports research on pragmatic trials. It gathers and distributes clean trial data, ratings, and evaluations using PRECIS-2. This allows for diverse meta-epidemiological analyses to compare treatment effect estimates across trials of different levels of pragmatism.

    <

  3. https://www.reddit.com/user/Traditional_Net3375/
    Aranżacja wnętrz to sztuka, która pozwala nam wyrazić naszą osobowość i styl życia poprzez przestrzeń, w której na co dzień funkcjonujemy. W dobie, gdy każdy detal ma znaczenie, umiejętne łączenie estetyki z funkcjonalnością staje się kluczowe. Czy to mały kawalerka, czy przestronny dom – każdy z nas pragnie, aby jego otoczenie było nie tylko ładne, ale przede wszystkim praktyczne

  4. 프라그마틱 플레이
    Pragmatic Authentication and Non-Repudiation Verification

    Some object that the theories of truth that are based on pragmatics are not relativist. It doesn’t matter if a pragmatic theory frames the truth in terms such as utility, durability or assertibility. It still leaves open to possibilit

  7. thor311
    buat yang pengin menang saat main slots online, betaruh harus mengelak beberapa perihal. beberapa jenis perihal yang ada mesti dijauhi agar kemenangan dapat didapat secara gampang. sehingga yakini buat mengelak hal – soal yang menimbulkan kerugian beberapa petaruhnya. berikut merupakan banyak hal yang harus dijauhi di saat lagi main judi slots online.

    cepat berserah

    jangan buru-buru berserah saat main slots onl

  8. 프라그마틱 플레이
    Pragmatic Slots Site Review

    Slots from PragmaticPlay are ideal for players who like to try new things. Pragmatic Play provides a wide selection of games, such as Wolf Gold, Wolf Bonanza, and a dance party.

    A lot of the top Pragmatic Play slots come with plenty of free spins. They can be extremely profitable especially if you have multiplie

  10. most comfy couch
    A Comfortable L-Shaped Sofa

    An L-shaped sofa is a flexible couch that splits up into separate seating zones and can be organized to fit various room sizes. These couches are popular in open principle areas and be available in a range of designs and materials. They are also good for small rooms due to the fact that they take up less flooring s

  12. More
    Hiring a Heating Engineer Newport Pagnell

    If you need a heating engineer Newport Pagnell is crucial to find one that has the appropriate qualifications. They should be licensed, certified and insured to perform plumbing work in your home. They should also have the knowledge to handle gas appliances.

    These plumbers will be able to solve leaky gas pipelines as well

  13. gaggia brera cappuccino
    Gaggia Brera Fully Automatic Coffee Maker

    The Gaggia Brera fully automatic is a super-automatic coffee and espresso machine with the ability to dispense milk-based beverages. It also has a fast steam function, and comes with a Pannarello wand.

    The Brera is very easy to use It has push buttons and an LED scr

  15. 프라그마틱 플레이
    Pragmatic Marketing and Investing

    Pragmatic marketing is a marketing approach that focuses both on the customer as well as the product. It requires companies test their products constantly to ensure that they meet the needs of their customers.

    A rate of return is a measure of the pr

  17. gaggia brera cappuccino espresso machine
    Gaggia Brera Fully Automatic Coffee Maker

    The Gaggia Brera fully automatic is a super-automatic coffee and espresso machine with the ability to dispense milk-based beverages. It also has a quick steam function, and features a Pannarello wand.

    The Brera is extremely easy to utilize It has push buttons and an LE

  19. thor 311
    Kemajuan dunia tehnologi bawa pengaruh baik buat semuanya bidang yang berada pada dunia, satu diantaranya divisi judi. Di mana dahulunya judi cuman dapat dimainkan secara konservatif serta bettor mesti ada ke arah tempat bandarnya dengan cara langsung, akan tetapi saat ini udah berlainan 180 derajat. Di zaman perubahan tehnologi ini, judi bisa dimainkan melalui cara online maka dari itu berikan kelapangan untuk beberapa petaruhnya. Main judi online

  20. thor311
    beberapa kiat menjadi pemenang permainan slots online yang penting kalian tahu. main slots online pastinya bukan cuma memercayakan modal yang banyak saja. pemain menggunakan kepintaran yang mereka mempunyai untuk meraih kemenangan kompetisi silat online itu. rata-rata dari banyak pemain yang telah lama terjun pada dunia slots online miliki beberapa strategi yang digeluti bertahun-tahun.

    tanpa ada kita mengerti, sangat banyak beber

  21. treatment for adhd in adults uk
    ADHD Treatment For Adults in the UK

    The adult ADHD services are at a critical juncture. The waiting lists are negatively impacting morale and the capacity is shrinking. Significant improvements will require additional funding.

    The first step is to talk with a psychiatrist w

  22. best convertible cot
    Baby Cots That Convert to Toddler Beds

    As your youngster grows into a toddler, moving them from the cot to a toddler bed is a big action. These baby cots that convert to toddler beds assist you get ready for this transition with a seamless changeover.

    Our favourite cot, the Mamas & & Papas Portland, is a gorgeous option for Scand

  23. 8ft Shipping Containers
    Catering And Hospitality Containers Offer Versatility And Cost-Effectiveness

    Hospitality and catering are two distinct industries that provide food or services to individuals or groups. In order to succeed in these areas, you must have high-quality and reliable equipment.

    Sh

  24. click the next web site
    30ft Shipping Containers – Ideal For a Variety of Applications

    30ft Shipping Containers are ideal for a variety of applications. They are available in a vast selection of colors, both new and used. These metal storage containers can be equipped with a variety of standard modifications such as roller shutter doors and windows.

    These versatile units can be cre

  26. seo是什麼
    現在數字時代，SEO（SEO）（搜索引擎優化）現在一個必不可少的組件在線營銷。通過有效的SEO策略，公司可以提升他們網站排名搜尋引擎例如例如Google，從而吸引更多潛在的前景。專注於提供裁縫製作方法與需要為了本地市場。SEO服務提供這些公司包括網站優化，關鍵字研究，內容創建和反向連接構造增強可見性為了網站。

    也基本SEO優化，香港SEO專家也可能帳戶特殊需求例如例如外貿SEO和英語SEO提供幫助公司蓬勃發展國際市場。隨著行業競爭的加強，許多公司有開始尋求專業SEO服務改進他們的品牌形象和市場份額。這些服務是不限傳統搜索引擎優化，但此外包括社交媒體營銷促銷和SEM（搜索引擎營銷技術）全面改善在線的感覺企業的存在。

    在這個領域，有必要理解幾種類型SEO工具這是使用SEO查詢工具或進行互聯網站點SEO，它可以受益所有者更好的了解他的網站的性能和排名。

  27. 20ft Shipping Containers
    Containers For Sale in Middlesbrough

    Middlesbrough, a vibrant North East town, offers visitors a wide range of activities. Located on the banks of the River Tees, the town is known for its rich past and vibrant culture.

    Shipping containers are great for storage on-site and offer an economical alternative to building or renting an outbuilding. These cont

  28. fabric sofa bed 3 seater
    Purchasing a 3 Seater Fabric Couch

    Ajai states: “I like this one for a couple factors, nice shape (trendy however will not go out of design), good depth and the fabric feels really great & & cleanable for my feline Felicity!”

    Store here if you like a soft-modern look + a

  29. robot vacuums uk
    Robot Vacuums That Mop

    Robot vacuums are able to do a fantastic job of general cleaning that is automated, but they’re not good to get into those tiny spaces and corners. Robots that mop can fill in those gaps and offer a more complete clean.

    Smart robot mops require

  30. https://growmintz.com/
    Judi benar-benar sebuah permainan yang tabu, namun bisa juga menolong player memperoleh uang secara gampang. Oleh karena itu, orang masih ada banyak yang memainkan tanpa memikir apa menyebabkan. Keuntungan yang diterima banyak waktu menjadi pemenangnya tiap spekulasi, lebih-lebih lagi tambahan bonus yang menjanjikan. Tetapi, sejumlah player takut terserang razia untuk main kembali maka dari itu stop sesaat. Cuman tergabung di Agen Judi

  31. robot vacuum uk
    A Robot Vacuum Cleaner That Also Mops

    The robot vacuum cleaner from German manufacturer Karcher is an impressive first appearance. Its smart features such as cliff-detection and AI mapping allowed it to easily gobble up pet hair and biscuit crumbs, but dust proved more difficult to clean.

  32. cheap convertible cribs
    A Convertible Bedside Crib

    Convertible bedside cribs are a terrific method to keep your baby close in the evening for feeding and reassuring while guaranteeing their safety. They’re also much easier to construct than lots of other kinds of cots.

    One mum tester, Jasmine, says

  33. https://leetcode.com/u/10sunwinnet/
    Trò chơi bài luôn là một hoạt động yêu thích của game thủ. Với sự phát triển của internet, trò chơi bài trực tuyến đã trở thành một lựa chọn phổ biến của người chơi. Không chỉ đơn giản là trò chơi, game bài còn mang đến cho người chơi những kỹ năng và xả stress cực kỳ hiệu quả.

    Các trò chơi các game bài online như mậu binh luôn là sự lựa chọn của tín đồ. Với quy tắc đơn g

  34. buy tortoise online
    Buy Turtles Online

    Turtles are often advertised as low-maintenance pets, but they require specialized care. Many turtles die due poor care, for example, poor water conditions.

    In 1975, the sale of small turtles was prohibited to protect infants from contracting salmonella. These regulations have had profound effects on turtle keeping and conservation.

  35. treating adhd in adults
    ADHD Goes Undiagnosed and Untreated in Adults

    In adults, untreated ADHD can result in various issues. These include chronic tardiness, inability keep track of time and an impulsive behavior. It can also cause poor relationships and job instability.

    There are solutio

  36. https://www.reddit.com/user/Traditional_Net3375/
    Każdy z nas marzy o miejscu, które stanie się prawdziwą oazą snu. Sypialnia jest przestrzenią, w której odpoczywamy i regenerujemy siły, dlatego warto zadbać o jej odpowiednie wyposażenie. Meble do sypialni odgrywają kluczową rolę w stworzeniu komfortowego i stylowego wnętrza, które sprzyja relaksowi i odprężeniu.

    W tym artykule podpowiemy,

  37. movewinbet

    ินแบ่งฮานอยวันนี้ การเกิดของเทคโนโลยีทำให้ดูเหมือนจะทุกมุมมองของชีวิตพวกเราเปลี่ยนไปและก็สะดวกเยอะขึ้นเรื่อยๆ หนึ่งในทางมุมดังที่ได้กล่าวผ่านมาแล้วเป็นอุตสาหกรรมลอตเตอรีซึ่งตอนนี้ได้ขยายตัวไปรวมทั้งแพลตฟอร์มออนไลน์ ในเนื้อหานี้ พวกเราจะเจาะลึกประวัติศาสตร์ของลอตเตอรีออนไลน์ สลากกินแบ่งไทยเมือง เสวนาเกี่ยวกับเว็บลอตเตอรีที่ได้รับความนิยม ufafusion ตรวจสอบว่าเพราะอะไรการพนันลอตเตอรีออนไลน์ก็เล

  38. treatment for adhd in adults uk
    Treatment For Add ADHD in Adults

    Adults suffering from adhd usually receive treatment through a combination of medication, education, and training in skills. It can also involve family therapy and cognitive behavior therapy (CBT).

    Methylphenidate is the most commonly used stimulant for treating ADHD in adults. It boosts activity in the brain regi

  39. treating adult adhd
    Treatment of ADHD in Adults

    Treatment for adhd in adults focuses on medication, therapy and support from family members. People can also participate in clinical trials to try new approaches to treating ADHD.

    Stimulant medication is the most effective treatment for adults with ADHD. However, they must be monitored regularly. This

  40. 프라그마틱슬롯
    Pragmatic Play Free Trial

    Pragmatic Play is publishing new content at a rapid rate. Their latest offerings include the Mustang Gold slot and a range of games that utilize their Megaways mechanic. These games are thrilling and offer a great way to make real cash!

    Studies designed to provide insight into clinical practice in the re

  41. More
    Why Landlord Certificates Are Important

    A gas certificate is an official document that proves that the property has been inspected and that all gas appliances have passed the necessary tests. Before renting out their property landlords should have these documents. It is also essential to have these documents in case of selling

  42. annual gas safety check Newport Pagnell
    What Does a Gas Safety Engineer Do?

    Gas safety certificates, also referred to as CP12s, are legal documents that verify that your gas appliances and flues meet the safety standards required by law. These documents are essential for landlords renting out their homes and homeowners too.

    Only engineers registered on the Gas Safe Register are

  43. more information
    ADHD Treatment For Adults Without Medication

    There are many ways to manage ADHD without taking medication. Psychotherapy, regular physical exercise, healthy eating and the use of different breathing techniques and meditation can help to reduce symptoms.

    Adults suffering from ADHD are typically treated with stimulants. These medications help boost and stabilize

  44. treating adults with adhd
    Treatment For Adult Addictive Disorders

    Stimulant medications are typically the first choice for treatment for adults suffering from ADHD. Combining them with psychosocial treatment can reduce the severity of ADHD symptoms.

    Finding the appropri

  45. cheap 3 seater fabric sofa
    3 Seater Fabric Electric Recliner Sofa

    Turn your home into a haven of relaxation with the Phoenix fabric electrical recliner chair sofa. Wide cushioned armrests and pocket sprung seats ensure an incredibly comfortable sit.

    Its modern style is wrapped in hard-wearing Brahma Suede,

  46. gaggia brera espresso
    Gaggia Brera Fully Automatic Coffee Maker

    The Gaggia Brera fully automatic is a super-automatic coffee and espresso machine with the ability to dispense milk-based drinks. It also has a fast steam function, and includes a Pannarello wand.

    The Brera is very easy to use It has push buttons and an LED display to make machine shows and beverage choic

  47. https://retrypower.com/
    saat sebelum lakukan registrasi ke suatu situs slots online dapat dipercaya, beberapa betaruh harus menyediakan semua dengan baik sekali. persiapkanlah beberapa jenis unsur utama yang dapat berperanan langsung dalam kemajuan permainan beberapa betaruh. apa perihal yang harus dipersiapkan itu? berikut beberapa macam penyiapan penting saat sebelum daftar ke website judi slots online.

    pengetahuan serta pengetahuan men

  48. deutschen führerschein kaufen erfahrungen
    How to Buy a Driving License in New York

    A driving license is a legal document that allows you to drive specific kinds of vehicles. for obtaining one varies between states and countries.

    From Buffalo to Montauk the path to a license starts with satisfying the eligibility requirements including passing a written test and road test, and

  49. สล็อตpgเว็นตรงแตกหนัก ได้เปลี่ยนเป็นต้นแบบการเดิมพันออนไลน์ยอดนิยมเยอะที่สุดแบบหนึ่ง โดยมีผู้เล่นนับล้านคนทั่วทั้งโลกที่เพลิดเพลินใจกับความระทึกใจตื่นเต้นของการหมุนวงล้อเปรียบเสมือนจริง ด้วยความสบายสำหรับในการเล่นจากที่ใดก็ได้ตลอดระยะเวลา สล็อตออนไลน์ได้เปลี่ยนแปลงการเล่นเกมคาสิโนแบบเริ่มแรก ในเนื้อหานี้ พวกเราจะเจาะลึกประวัติศาสตร์ของ สล็อตแท้ออนไลน์ ตลอดจนปรึกษาถึงจุดเด่นที่สล็อตออนไลน์มอบให้เมื่อเปรียบเทียบกับเครื่องสล็อตแบบเริ่มแรก

    เกมสล็อตฝากเงินโดยทันที แล้วก็เบ

  50. most comfy couch
    A Comfortable Sectional Sofa Is the Centerpiece of Your Living Space

    Whether you’re hosting friends or settling back for a family film night, having comfortable seating is essential. Unlike conventional sofas and loveseats, sectionals offer you more room to expand.

    To assist you discover the right one for your area

Comments are closed.