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.

254,455 thoughts on “Department Store Industry”

  1. related webpage
    Bunk Bed with Slide and Stairs: The Ultimate Guide

    Intro

    When it pertains to developing the best bedroom for your kids, a bunk bed with a slide and stairs can be the ultimate addition. Not just does it supply a fun and special sleeping plan, but it likewise adds a touch of experience to the room. With the flexibility of

  2. PF-06882961
    Coccidioidomycosis is a fungal infection of the Western hemisphere that is endemic to the soil in areas with limited rainfall. Human and animal infections result with inhalation of arthroconidia. Most often, this is an asymptomatic event. When illness occurs, it is primarily a pneumonic presentation. A small minority of infections eventuate in disseminated disease. Predominately, this presents as meningitis or oste

  3. buy Bezafibrate
    center. Yet, there are gaps such as absence of full-time physicians. This study highlights the need for periodic review to identify gaps in care.

    Palliative care physicians in India have achieved access to methadone for pain relief in cancer patients. Despite being an effective drug in terms of analgesia, there are a number of reasons why this opioid medication is not as much as popular as mo

  4. JSH-23 manufacturer
    Participants completing vigorous intensity exercise reported more negatively valenced affective response and higher RPE, on average, across weeks. Greater total exercise volume completed and greater change in VO₂max were associated with more negatively valenced affective response, on average. Baseline affective response scores were positively associated with exercise minutes at follow-up; however, average affecti

  5. https://www.selleckchem.com/products/proteinase-k.html
    A cortical mastoidectomy was performed using Landmarx image navigation. BSS filled the mastoid and a 0-degree endoscope with endoscrub was used to see the SCC underwater. The SCC was entered near the ampullated end with a bur. A stepwise plugging process included applying strips of wet and dried fascia and bone dust. The non-ampullated end was similarly plugged. BSS was su

  6. https://www.selleckchem.com/products/caspofungin-acetate.html
    Notably, the fish fillets were found to produce the fewest COPs due to the presence of a low amount of cholesterol and unsaturated fatty acids. In conclusion, adapting boiling as a way of cooking and choosing the right type of meat could serve to reduce COPs in processed foods.Buriti (Mauritia flexuosa L.) oil (BO) is a byproduct that can be incorporated int

  8. raf signaling
    Conclusion Prolonged droughts manipulate the mortality of big trees, leading to a decline in aboveground carbon shares. Here, as well as in other neotropical forests, current droughts are capable of shutting down and reversing biomass carbon basins. These brand new outcomes add to evidence that anthropogenic environment changes already are negatively impacting tropical forests.Hydro

  9. UPF 1069
    ntrol for both age and BMI. Researchers should also compare ratio approaches with multivariate techniques, such as geometric morphometrics, to examine whether the latter have greater utility for understanding the evolution of facial sexual dimorphism.The study of super-gentrification has important practical significance for maintaining social fairness, spatial justice and achieving sustainable urban development. In this a

  10. click here
    The nanoparticles were uniform in size and approximately 100 nm in diameter. They were highly stable and functional for up to 24 h under physiological conditions and demonstrated slow release kinetics. In vitro and in vivo toxicity studies showed no appreciable drug toxicity to human skin fibroblast (GM38), prostate cancer cells (PC3), and to C57/BL mice. Cell uptake studies demonstrated accumulation of the nanoparti

  11. 프라그마틱 슬롯
    Pragmatic Slots Review

    Pragmatic Play’s online slot games feature numerous bonus features as well as a high Return to Player (RTP) that allow players to maximize their winning potential. These games are also compatible with a wide range of languages and currencies. These games work with the majority of mobile devices.

  12. Panobinostat clinical trial
    8%, 98.8%, and 98% and for reader 2 was 89.5%, 100%, and 98%, respectively. Positive predictive value and negative predictive value for reader 1 was 94.7% and 98.8% and for reader 2 was 100% and 97.6%, respectively. Interrater correlation between the two readers was calculated with kappa of 0.93.

    The black rim susceptibility appearance of colloid cyst on SWI is a n

  13. checkpoint inhibitor
    You can find a number of cases reported involving distribution with COVID-19 infection, but small important recommendation was provided about what healthcare providers of obstetrics and neonatology must do inside their clinic rehearse for unknown status or presumed negative women. Here, we summarized current practice of delivery management in Asia that effectively avoided rap

  15. gaggia brera super
    Gaggia Brera Coffee Machines

    The Gaggia Brera is a trendy, compact bean-to-cup espresso machine that uses an amazing variety of modification options. It includes an integrated milk frother and programmable settings for brewing the perfect cup of coffee each time.

    Its brew procedure starts wi

  16. 3 seater fabric sofa sale uk
    3 Seater Fabric Sofa Recliner

    A 3 seater fabric sofa reclining chair is the ideal mix of appearances and comfort. Pocket sprung seats and soft inset arms lay the structure for genuine relaxation and a power recliner lets you find your ideal seating position at the touch of a button.

    There’s a big var

  17. portable x ray near me
    PDI Health stands as a premier provider of mobile diagnostic imaging services, offering a comprehensive suite of healthcare solutions right at your doorstep. Specializing in mobile X-ray services, mobile imaging, and mobile radiology services, we deliver ease and exceptional care to patients across various locations. If you are in need for “X-ray nearby me” or need immediate imaging services, PDI Health offers a dependable

  18. mouse click the next article
    How Much Does it Cost to Buy a German Registered Driving License?

    If you’re planning to drive a vehicle in Germany you’ll need to exchange your non-EU or EEA license to a German one. This can be done at the Fuhrerscheinstelle of your city. There are other requirements, such as the first aid course as well as an eye test.

    If you are from a

  19. Highly recommended Site
    What is a Gas Safety Certificate?

    A gas safety certificate is an examination by a licensed engineer that ensures that the appliances and pipes in your property are safe to use. It’s essential for landlords and building owners to have this inspection carried out every year.

  21. hi!,I love your writing very so much! share we be in contact
    extra about your post on AOL? I need a specialist in this space to unravel my problem.
    Maybe that is you! Having a look forward to peer you.

    Have a look at my web site: Bokep Terbaru

  23. doctors that treat adhd in adults
    Symptoms of Untreated ADHD in Adults

    Adults with untreated ADHD may include difficulties managing time and the tendency to be impulsive. They might miss appointments or forget to take care of their responsibilities, and struggle with emotional regulation, frequently experiencing sudden changes in mood.

  25. Thiomyristoyl
    A statistically significant, positive correlation existed between OJ and OCB. Maximum correlations existed between distributive justice and altruism, procedural justice, courtesy, and interactional or interpersonal justice and conscientiousness. This study showed that procedural justice was the best predictor of OCB.

    This study revealed a correlation between OJ and OCB, re

  26. https://kinogo.green/multfilmy/
    В современном мире кино стало гораздо доступнее благодаря онлайн-платформам. Больше не нужно тратить время на походы в кинотеатры или подождать, пока любимый фильм выйдет на DVD. Теперь достаточно нескольких кликов, чтобы насладиться шедеврами мирового кинематографа прямо у себя дома. Online-сервисы предоставляют огромный выбор фильмов и сериалов, что позволяет каждому найти что-то на свой вкус.

  27. convertible crib with storage
    Purchasing a Convertible Crib and Changer

    A convertible crib and changer lets you get ready for every stage of your baby’s development. Pick from 2-in-1 designs that transform to toddler beds or 5-in-1 cribs that also change into daybeds, full-size bed, and sofas (toddler guard rail and conversion set offered independently).

    Produc

  28. SB203580 solubility dmso
    The xTAG GPP was more likely to be affected by amplification inhibitors. Several defects of xTAG GPP were found in detecting ETEC.

    FilmArray was more sensitive. For specimens with low target concentrations or containing ETEC heat stable enterotoxin, the false negatives of xTAG GPP need to be considered.

    FilmArray was more sensitive. For specimens

  29. IRAK-1-4 Inhibitor I price
    Besides, MDA level decreased in AEGAK2 and hippocampal but not hypothalamic MDA decreased in AEGAK1 compared with control. However, concomitant administration of AECONS and AEGAK enhanced plasma, hippocampal and hypothalamic biomarkers except hypothalamic MDA level. The present study demonstrates that AECONS and AEGAK synergistically enhances hippocampal and hypothalamic glutamate and Na+/K+-

  31. EGFR inhibitor
    The above results together explain that five LC uterine perfusions can be used to establish a mouse model of clinical endometritis. CGA can treat clinical endometritis by activating Keap1/Nrf2 and inhibiting the NFκB signalling pathway.

    The above results together explain that five LC uterine perfusions can be used to establish a mouse model of clinical endometritis. CGA can treat clinical endometritis by

  32. Visit Web Page
    Buy a Driving License Without Paying in Advance

    Before you purchase a license you must be aware of a few essential things. You will first need to complete a pre-licensing training course and pass the test. You must also pay any outstanding fines or excise taxes.

    A US driver’s license is

  33. Protosappanin B
    For women, we found no clear SES gradient in the risk of mental disorder. These findings suggest that the contemporary patterns in socioeconomic and gender gaps in mental disorder emerged during the 1940s and 1950s and have since then persisted.Mind wandering (MW) refers to the shift of attention away from a primary task and/or external environment towards thoughts unrelated to the task. Recent evidence has

  36. https://richfrontless.com/
    games slots online itu terdiri dalam beberapa macam permainan. varian serta tipe permainan yang banyak itu pastilah amat memberi keuntungan untuk beberapa petaruhnya. dengan varian dan model permainan slots yang banyak itu, betaruh dapat kian simpel dalam mencetak kemenangan. berikut ialah beberapa model games slots online yang paling memberikan keuntungan.

    slots classic

    type slots classic

  37. robot vacuum hoover
    Features of an Automatic Vacuum Cleaner and Mop

    A robot mop and vacuum is a great method of cleaning your floors. These bots can keep your floors spotless while you’re away and are ideal for floors made of hard wood.

    The Dreame X40 is the best mop and vacuum cleaner we’ve tested to date it has passed our cleani

  38. gas safe engineers Newport Pagnell
    Central Heating Engineers in Newport Pagnell

    You must always verify credentials when you are seeking plumbing services in Newport Pagnell. A reputable plumber should be fully qualified and Gas Safe registered.

    If they are not, you must look for a different engineer. Some p

  41. check details
    The strategies for developing vaginal microbicides to protect women against human immunodeficiency virus (HIV) sexual transmission are constantly changing. Although the initial dosage forms required daily administration to offer effective protection, the trend then moved towards sustained-release dosage forms that require less frequency of administration in order to improve women’s compliance with the treatment. Neverthe

  42. kann man führerschein kaufen
    How to Buy a Driving License in Germany

    You are able to exchange the license for an German driving license if your license was issued by a member state of the EU/EEA or a country with an agreement of reciprocity. You must pass both a theory and a practical driving test.

    Be sure to make an appointment with your Burgeramt prior to

  43. deutsche Leitung
    In neighbouring cities, you’ll have the ability to visit the turtle hatchery in Kosgoda, coral reefs in Hikkaduwa and also take pleasure in some thrilling water sports activities along the Southern Coastline. During your climb you will notice some beautiful frescos embedded in the rock and a Lion’s Gate, as the entrance to the palace. At the highest you will see ruins of the palace as well as an amazingly breathtaking view of t

  44. Fungame棋牌，Fungame電子游戲，Fungame老虎機，Fungame花旗骰

    Fungame 一直致力於為玩家提供多樣化的遊戲選擇，而在所有遊戲種類中，老虎機無疑是最受歡迎的一類。不管是經典的三輪老虎機，還是充滿創意的視頻老虎機，Fungame 遊戲平臺都能滿足您的需求。本篇文章將深入介紹 Fungame 的老虎機遊戲特色，並向您介紹我們最新的優惠活動，讓您在遊戲中盡情享受獎勵和樂趣。

    多樣化的主題設計

    老虎機遊戲的主題可謂是千變萬化，Fungame 平臺更是在這方面下足功夫。無論您是喜歡經典的水果機、尋寶探險的冒險主題，還是現代科技感十足的科幻主題，您都能在 Fungame 找到適合您的遊戲。此外，我們還有專為節日、電影和流行文化定制的主題老虎機，保證每一位玩家都能找到自己喜愛的遊戲。

  45. BMS-986158
    Autosomal recessive axonal neuropathy with neuromyotonia has been linked to loss of functional HINT1. The disease is particularly prevalent in Central and South-East Europe, Turkey and Russia due to the high carrier frequency of the c.110G > C (p.Arg37Pro) founder variant.

    In a cohort of 748 Norwegian patients with suspected peripheral neuropathy, we identified two seemingly

  47. selleck kinase inhibitor
    erestimated in NEMA-based analyses.Rugby union (RU) is a skill-collision team sport played at junior and senior levels worldwide. Within England, age-grade rugby governs the participation and talent development of youth players. The RU player development pathway has recently been questioned, regarding player performance and well-being, which sport science research can address. The purpose of thi

  49. see more
    Increased patient mental distress was associated with decreased patient QOL (overall, emotional, social, functional). Increased patient physical distress was associated with decreased patient QOL (overall, physical, emotional, functional) and decreased caregiver emotional wellbeing. Increased caregiver mental distress was associated with decreased caregiver QOL (overall, emotional, social, functional) and decreased patien

  50. gaggia brera silver espresso machine
    Gaggia Brera Super Automatic Espresso Machine Little Silver

    If you’re a coffee fan searching for a good-tasting super automatic espresso machine, have a look at the Gaggia Brera. It has a great cost and offers the benefit of an espresso machine with a steam wand.

    Push-button controls and an LED display screen make it simple to util

Leave a Reply

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