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.

335,755 thoughts on “Department Store Industry”

  1. 45678 tv
    Reckon all-in-matchless displays screen background computing device for your necessarily. This agency that the reckoner has a big admonisher with the legal age of its components in the in reply. They follow in many sizes and with and without extend to input. They are easier to tape drive due to to a lesser extent wires. Many also rich person built-in webcams for easier picture conferencing. They work out keen for entertainment purposes, as well.

    <

  2. 해외에이전시
    슬롯 플레이를 위한 팁 및 전략

    포커 및 기타 게임에는 우연의 요소가 있지만 슬롯 머신은 완전히 무작위입니다.

    말하겠습니다. 완전히 무작위입니다.

    이제 명확해졌으므로 여전히 가장 많은 승리를 거둘 수 있는 전략을 세웁니다.

    게임을 하는 동안에도 게임을 즐겨야 합니다.

    슬롯머신을 하기 전에 하고 싶은 게임을 선택하세요.

    베팅하기 전에 배당률, 최소 및 최대 베팅, 잭팟을 알아야 합니다.

    다음 단계는 이 모든 정보를 기반으로 가장 적합한 게임을 결정하는 것입니다.

    여러 유형의 슬롯을 사용할 수 있으며 각 회사에는 다른 잭팟

  3. ratu311
    Jadi seseorang pejudi online yang andal pastilah yaitu satu diantara hasrat dan keinginan bahkan kemungkin hasrat pihak lain atau juga semuanya orang. Seluruh orang yang memilih untuk kembali tubuh termaju di pastilah menghendaki itu semua tapi Tentu saja semuanya itu tidak bisa digapai apabila anda tak mengerti Bagaimana cara dan siasat bermain mesti dilakukan. Bakal lebih bagus apabila setelah itu ada belajar banyak juga cari kabar berapakah tehni

  4. betflixslot

    แจกเครดิตฟรีคาสิโน แนวความคิดประเด็นการพนันแล้วก็คาสิโนมี โดยมีการอ้างอิงแรกสุดย้อนกลับไปถึงยุคกรีกรวมทั้งโรมโบราณ อย่างไรก็ดี กระทั่งช่วงปลายศตวรรษที่ 20 การเดิมพันและก็คาสิโนออนไลน์ยุคใหม่ก็เลยเกิดขึ้น ในตอนนี้ อุตสาหกรรมคาสิโนออนไลน์เป็นธุรกิจที่มีมูลค่าหลายพันล้านดอลลาร์ ทำให้ผู้เล่นได้รับความสบายสบายและก็น่าเร้าใจสำหรับเพื่อการเล่นการเดิมพันจากที่บ้านของตัวเอง คาสิโนไม่มีติดเทิร์น ในเน

  5. agen sbobet
    Dalam dunia taruhan olahraga, istilah “cashback” telah menjadi salah satu fitur yang paling diminati oleh para pemain. Cashback memberikan kesempatan kepada pemain untuk mendapatkan kembali sebagian dana mereka dari taruhan yang tidak berhasil. Saat ini, banyak platform taruhan menawarkan promosi cashback bola terbesar untuk memberikan nilai tambah bagi pengguna mereka. Artikel ini akan menjelaskan apa itu

  6. https://go88.loans/

    In a object-oriented language one among the first tasks that you evaluations know is basically need to instantiate which mean that you would declare that something potentially there is so where you can refer in order to it. For instance if possibly going the following mammal1 with your source code then end up being have to always attributes. Those would be furcolor and

  7. công ty 45678
    Going green does not always require big changes; sometimes it’s the little things that matter. Any changes you make, big or small, will still benefit the earth. The advice in the paragraphs that follow can help you understand how to switch to different, green sources of energy.

    One of the simplest ways to help save the environment is to use less energy. Unplug appliances when you’re not using them. Televisi

  8. https://koldingwaddell4.livejournal.com/profile
    Kubet là một sàn cá cược trực tuyến đáng tin cậy, cung cấp nhiều loại hình cá cược và trò chơi giải trí. Với giao diện người dùng thân thiện và hệ thống bảo mật cao, Kubet đảm bảo mang lại cho người chơi trải nghiệm an toàn và mượt mà.

    Thông tin:

    Địa chỉ: 17/29/7 Đất Thánh, Phường 6, Tân Bình, Thành phố Hồ Chí Minh, Việt Nam

  12. https://superslotth168.net/

    สล็อตแตกง่าย2024 โลกของการเดิมพันออนไลน์เติบโตอย่างยิ่งในตอนไม่กี่ปีที่ล่วงเลยไป แล้วก็ปัจจัยหลักอย่างหนึ่งที่ทำให้เป็นแบบนั้นก็คือการเจริญเติบโตของสล็อตออนไลน์ สล็อตแมชชีนเหมือนจริงกลุ่มนี้เป็นที่นิยมมากขึ้นในกลุ่มผู้เล่นเนื่ ้วก็การเข้าถึงในเนื้อหานี้พวกเราจะเจาะลึกประวัติศาสตร์ของ สล็อต ผลดีที่สล็อตแมชชีนมอบให้ และก็แนวทางการเพิ่มกำไรของคุณให้สูงสุดผ่านคำแนะนำพิเศษและก็โบนัสบนเว็บต่า

  13. https://leoai.net/seo
    在當今數字化時代，搜尋引擎已經變成了主方向訪客查找信息，產品和服務。一個小和中型企業，你可能有實現簡單的提示伸出來當你看著搜索引擎結果定位在激烈的競爭市場。這是任務你的公司 – 螺旋您的業​​務意識到搜索引擎營銷（SEO），增強排名搜索結果，吸引更多潛在客戶並增加業務收入。

    我們的專業團隊有很多年SEO經驗，在-Depth中理解運營原則互聯網搜索引擎算法，並不斷跟踪和調整策略確保您的在線業務顯然是領導我們是不僅僅限於關鍵字分析和優化，但此外提供全面的網站優化服務，包括網站結構優化，內容優化，鏈接構建，技術優化等。確保您的網站得到搜索引擎本質中的最佳可見性和排名

    主要優勢我們的公司不僅是技術，但此外我們的理解每個客戶的獨特需求和個性化服務。我們有一個深刻的理解您的公司，針對客戶和競爭環境，能夠制定SEO策略最適合你最好

  14. agen bola resmi
    SBOBET telah lama dikenal sebagai salah satu platform taruhan online paling populer di dunia. Dengan berbagai pilihan permainan dan layanan berkualitas tinggi, SBOBET menjadi pilihan utama bagi para pecinta taruhan olahraga dan permainan kasino. Artikel ini akan membahas cara mendaftar atau daftar SBOBET serta manfaat bergabung dengan platform ini.

  15. naza666

    เล่นคาสิโนยอดนิยม ในโลกของคาสิโนออนไลน์และก็ ่างๆที่ผู้เล่นสามารถเพลินใจกับเกมโปรดของพวกเขาขณะที่ใช้ประโยชน์จากข้อเสนอแนะที่น่าระทึกใจ แนวความคิดของเครดิตฟรีในคาสิโนบางทีอาจดูดีเกินกว่าจะเป็นจริง แม้กระนั้นได้เปลี่ยนเป็นเรื่องจริงในโลกของการเดิมพันออนไลน์แล้ว คาสิโนออนไลน์หลายที่เสนอเครดิตฟรีปริมาณหนึ่งให้กับผู้เล่นเมื่อลงทะเบียนเป็นสมาชิก คาสิโนสุดฮอต ซึ่งพวกเขาสามารถใช้เล่นเกมที่เลือกได้ เครดิตฟรีพวกนี้มักมากับกฎระเบียบการพนัน ซึ

  16. WBC247
    현대 사회에서 사람들이 카지노에 놀러 갈 필요가 없기 때문에 카지노에 놀러 가는 것은 말이 되지 않습니다.

    개인 게임을 즐기는 모든 플레이어가 한 번쯤은 들어봤거나 접한 단어는 파워볼입니다.

    Powerball은 사이트의 Powerball 게임입니다. 제 설명이 너무 간단하게 들릴지 모르지만, 파워볼 사이트는 사실 파워볼 게임이기 때문에 다른 설명은 필요하지 않을 것 같습니다.

    사다리 게임과 동일한 파워볼 미니게임입니다.

    24시간 언제 어디서나 쉽고 간편하게 즐길 수 있는 미니게임입니다.

    <b

  18. https://www.google.com/maps?cid=2818031247894790614
    Service de Réémaillage de Baignoire : Tout Ce Que Vous Devez Savoir

    Le réémaillage de tub est une option souvent ignorée mais particulièrement utile pour apporter une nouvelle jeunesse à une baignoire vieille sans avoir besoin de envisager un substitution. Vous pensez à de rénovation votre baignoire ? Par conséquent vous êtes à la bonne adr

  21. Binomo sign up
    Binomo sign up is an modern online trading platform designed to meet the needs of both beginner and experienced traders. It provides access to a diverse array of financial instruments, including forex, stocks, raw materials, and other assets. With -to-use interface and advanced trading tools, Binomo enhances the trading process, making it accessible to anyone interested in financial markets.

  24. A prenuptial agreement, often called a “prenup,” is a legal contract entered into by a couple before marriage to outline the division of assets, liabilities, and financial responsibilities in the event of divorce or death. If you’re in Arlington, VA, and considering a prenup, finding the right lawyer is crucial to ensure that your interests are protected while adhering to Virginia law. Arlington family lawyer

  26. Hi, I do believe this is an excellent website. I stumbledupon it 😉
    I will return yet again since i have saved as a favorite
    it. Money and freedom is the greatest way to change, may you be rich and continue to guide
    other people.

    Here is my blog post; children porn

  27. 45678 tv
    Construction your ain computer behind save up a mint of money, patch at the Sami clip producing a organisation that is doubly as potent as you would find if you bought it from a manufacturer. Construction your ain information processing system saves time, money, and cuts out the center humankind. Beginning edifice your ain today!

    If you are purchasing a desktop computer onlin

  29. crfr receptor
    This could easily improve the communication among surgeons and associates regarding Tessier craniofacial clefts.OBJECTIVE evaluate and analyze the effectiveness and safety of conventional craniotomy and small bone screen craniotomy within the treatment of hypertensive cerebral hemorrhage (HICH). PATIENTS AND METHODS Fifty-four customers with HICH addressed with co

  35. công ty 45678
    Many people want to do their part to save the environment, but have no clue what actions they need to take to do so. There are a wide variety of alternative energy solutions that are perfect for consumers to do their part. This article has great tips to help you use green energy now.

    Clean or replace

  37. this site
    Second Hand Containers For Sale UK

    The industry of shipping containers both used and new, is booming because of their durability and flexibility. There are a lot of containers available on the market.

    Buying used containers is a great method of saving money while getting your project started faster. Here are some of the

  43. gk88

    There is certainly not with less credibility compared to cold email out of the blue. A warm voice on another end among the phone carries much more credibility than an subscriber.

    There always be people who say no, who aren’t interested inside partnership. There could also be some who do

  44. araliyalands
    At Park Properties, we’ll assist and information you in purchasing probably the most applicable land in Sri Lanka to match your requirement and price range. Select from our range of strategically positioned lands depending in your requirement and price range. I particularly need to lengthen my honest due to Ms. Nidusha, who was incredibly friendly and supportive all through the method. Thank you very a lot, Ms. Nidusha, and the whol

  45. https://powerofratu.com/
    bakal ada sejumlah keuntungan yang dapat dirasa beberapa pemain dalam sesuatu agen slots online bisa dipercaya. beragam keuntungan yang ada dapat difungsikan langsung buat raih keuntungan pada permainan. sehingga kenali selalu beragam keuntungan waktu main di dalam agen slots memiliki pengalaman. di bawah ini merupakan beberapa jenis keuntungan main dalam suatu agen slots online yang profesional.

    kekuatan mendapa

  46. https://articlescad.com/kubet-s-n-c-c-c-tr-c-tuy-n-an-to-n-v-h-p-d-78-367317.html
    Kubet là một sàn cá cược trực tuyến đáng tin cậy, cung cấp nhiều loại hình cá cược và trò chơi giải trí. Với giao diện người dùng thân thiện và hệ thống bảo mật cao, Kubet đảm bảo mang lại cho người chơi trải nghiệm an toàn và mượt mà.

    Thông tin:

    Địa chỉ: 17/29/7 Đất Thánh, Phường 6

  47. land for sale ragama
    The firm is dedicated to providing a streamlined and efficient course of, connecting sellers with buyers and facilitating profitable transactions. With in depth experience within the land market, it provides personalized providers, market insights, and a dedication to maximizing the value of each property. Whether helping builders to find the best website for his or her projects or retail patrons in search of the right plot

  48. k86sport
    Dalam dunia taruhan olahraga, istilah “cashback” telah menjadi salah satu fitur yang paling diminati oleh para pemain. Cashback memberikan kesempatan kepada pemain untuk mendapatkan kembali sebagian dana mereka dari taruhan yang tidak berhasil. Saat ini, banyak platform taruhan menawarkan promosi cashback bola terbesar untuk memberikan nilai tambah bagi pengguna mereka. Artikel ini akan menjelaskan apa itu cashback b

  49. gk88

    There is certainly not with less credibility compared to cold email out of the blue. A warm voice on another end among the phone carries much more credibility than an subscriber.

    There always be people who say no, who aren’t interested inside partnership. There could also be some who do

  50. ratu311
    Jika Anda memang pengen mendapat kesenangan serta serunya dari perjudian yang Anda kerjakan, jadi Selanjutnya Anda mesti cari kabar dan temui beberapa info terkait teknik yang dapat dikerjakan. Ada bervariasi trik yang dapat anda kerjakan supaya Lalu Anda dapat rasakan dan mendapati kesenangan dari permainan itu. Beberapa dari anda kemungkinan banyak yang sudah ketahui cara-cara yang dapat dijalankan dari itu.

Leave a Reply

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