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.

251,268 thoughts on “Department Store Industry”

  2. deutscher schäferhund kaufen österreich
    Buy German Shepherd Dog Austria

    We will find a healthy German Shepherd pup that has been raised by responsible breeders.

    Buy German Shepherd Dogs Austria are extremely intelligent, and they work in many different jobs including military and police roles. They are also e

  3. 토토사이트 추천
    최근 온라인 베팅의 인기가 높아짐에 따라 안전하고 재미있는 토토사이트를 찾는 이들이 늘고 있습니다. 다양한 종류의 스포츠와 게임에 베팅할 수 있는 사이트들이 많이 등장하면서, 사용자들은 자신에게 가장 적합한 사이트를 찾기 위해 많은 시간을 할애하고 있습니다. 하지만 수많은 옵션 중에서 어떤 사이트가 믿을 수 있는지, 그리고 어떤 곳이 사용자에게 즐거움을 줄 수 있는지는 매우 중요합니다.

    오늘은 여러분이 안전하게 이용할 수 있는 토토사이트에 대한 최상위 추천 리스트를 제공하고, 각 사이트의 먹튀 여부를 검증할 수 있는 유용한 가이드를 함께 소개하고자 합니다. 토토사이트 순위와 추천 사이트를 통해 신뢰성을 높이고, 커뮤니티에서의 경험담과 정보도 활용하여 더욱 안전하고 즐거운 베팅을 경험해 보세요.

  4. Do you mind if I quote a couple of your posts as long as I provide credit and sources back to
    your weblog? My website is in the exact same niche as yours and my users would genuinely benefit from some of the information you present here.
    Please let me know if this okay with you. Regards!

    Here is my blog post – Bokep Terbaru

  5. Ovens And Hobs
    ILVE Single Oven and Hob Review

    A single oven and stove is a good option for those with limited kitchen space. They can be used in a variety of ways and are placed beneath the worktop, at eye level or even at the ceiling.

    When choosing an oven, you should consider factors like cooking capacity, features a

  6. Suggested Web page
    Cabin Bed Stairs: Taking Advantage Of Your Area

    Introduction

    Cabin bed stairs are a creative and practical option for making the most of space in little bedrooms. These innovative styles integrate a comfortable sleeping area with storage or research study space below. By including stairs tha

  7. deutscher führerschein kaufen
    How to Buy a Driving License in New York

    A driving licence is a legal document which allows you to drive specific kinds of vehicles. The process for obtaining one differs across states and countries.

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

  8. 무료슬롯
    Pragmatic Slots Site Review

    Pragmatic Play slots are an excellent choice for players who want to try something different and exciting. Pragmatic Play provides a wide range of games, including Wolf Gold, Wolf Bonanza and a dance party.

    A lot of the top Pragmatic Play slot machines come with a lot

  10. here.
    Untreated ADHD in Female Adults

    Women who suffer from untreated ADHD can experience significant difficulties in their personal and professional lives. Their symptoms are often misinterpreted as anxiety or mood disorder.

    Finding a therapist and a therapist skilled in treating females with adhd is a crucial step. This will prevent an incorrect diagnosis t

  11. white convertible crib with drawer
    Picking a White Crib Convertible

    For those with a love for vintage-inspired decor, the Babyletto Hudson crib is a terrific choice. Parents state this one is extremely trendy, with rounded slats and tapered feet. It likewise has a narrower frame than most other cribs, so it takes up less space.

  12. comfy overstuffed sofas
    One Of The Most Comfortable Sofa Bed

    Few furniture pieces multi-task in addition to a sleeper sofa. They supply comfy relaxing throughout the day and an inviting location for over night visitors to capture some ZZZs during the night.

    Search for a pull-out system that either unfolds the backrest flat or pull

  13. best car locksmith in bedfordshire
    Bedfordshire – A Dynamic Place to Do Business

    A professional auto locksmith can manage all of your car lock and key issues, consisting of emergency car lockout services. They are equipped with specialized tools that allow them to fix the problem rapidly and efficiently without causing any damage.

    <

  14. white bunk bed with stairs bunkbedsstore
    Children’s Bed with Stairs: The Perfect Sleep and Play Solution for Kids

    Intro

    A kids’s bed with stairs is not just a location to sleep, but likewise a versatile piece of furnishings that provides additional enjoyable and performance. These beds are created to supply a safe way for kids to climb and down, in

  15. บาคาร่าออนไลน์ , ประวัติบาคาร่า , G2G289 , บาคาร่าค่ายดัง , บาคาร่าเครดิตฟรี

    ประวัติความเป็นมาบาคาร่า เกมไพ่ที่ได้รับความนิยม ที่มีมาอย่างช้านาน

    บาคาร่ามีต้นกำเนิดมาจากอิตาลีในศตวรรษที่ 15 ซึ่งรู้จักกันในชื่อ “บาคาร่า” ซึ่งแสดงว่าศูนย์ในภาษาอิตาลี ประวัติความเป็นมาบาคาร่า เกมนี้เป็นที่นิยมในกลุ่มเจ้าขุนมูลนายปร

  16. deutschen führerschein legal kaufen
    How Can I Buy My Driver’s License?

    is an official document issued by the government that grants you legal permission to drive a car. It can also be used as proof of your identity. You can obtain a copy at the local DMV.

    To be eligible for a genuine ID, you’ll have to provide two proofs of your identity and two do

  17. best auto locksmith in bedfordshire
    Services Used By An Auto Locksmith Near Bedfordshire

    Whether you have actually lost your car keys or simply locked them in the lorry, an auto locksmith can help. They are trained to use special tools to open doors without damaging the car’s locks or ignition.

    <br

  18. deutschen führerschein legal kaufen
    Buying a Driving License – Understanding the Different Classes

    As someone who has helped many people get their licenses from Buffalo to Montauk I am aware that knowing the different classes is the first step in getting around safely and legally. This is applicable to new drivers as well as those looking to upgrade their license.

  19. BETTOR365 SLOT
    Wild symbols are utilized in slot machines to offer gamers the prospect to create a successful line, by substituting their wild symbol for whatever image they occur to be missing. So, it’s straightforward to see how the addition of untamed symbols in a recreation is very useful for gamers. Slot machines are excellent for online gambling as they’re quick and easy to get the hang of, and nice fun to play. Even if you’re new to onlin

  21. gas safety engineers Newport Pagnell
    Gas Safe Registered Plumbers in Newport Pagnell

    Gas Safe registration is required to use gas. Always work with a qualified professional to ensure you are in safe hands.

    Landlords must organize a CP12 safety check for all flues and appliances in their propert

  22. reinrassiger deutscher schäferhund kaufen
    Should You Buy an Old German Shepherd Dog?

    German Shepherds are employed in a variety of scent-work roles such as cadaver search, narcotics and explosives detection. These roles can require extensive obedience and training in protection.

    Responsible breeders match their top adult dogs,

  23. oven electric single ovensandhobs
    A Single Oven With Grill is a Dream Come True

    This Best Buy allows you to bake and grill on the same oven. It has special modes for warming plates, dough proofing and slow cooking.

    It has received a lot of praise despite its relatively high price. Its 61-litre oven on the bottom can c

  24. oxycontin ár
    Welcome to Dark-Pills, your reliable online destination for premium-quality products and exceptional service. Whether you’re searching for top-tier pharmaceuticals, research chemicals, or wellness solutions, we’ve got you covered with a wide selection to meet your needs.

    Why Choose Dark-Pills?

    : We pride ourselves on offering only the highest-quality items to

  25. epz015666 inhibitor
    Huge and considerable variations in chemical structure of peat therefore the properties of offers had been found to be regarding their education of decomposition. The offers from drained peatlands had been less chemically mature. On the other hand, the offers from fen and raised bog had been found is more mature than that of the corresponding drained peatlands. The af

  27. casino sbobet
    If pass a little money, even when it isn’t progressive jackpot, edit and savor your prize money. When you do donrrrt you have the money you have set for their own end for the day meet from wearing non-standard and several minutes . in every day or several.

    Get realize your the many game regarding machine, simultaneously important for that fresh professional. The players who are online or in land casin

  29. cytoskeletal signaling signals inhibitor
    More over, we’ve however to pinpoint the closest free-living relative for the endosymbiotic alga engulfed by the ancestral chlorarachniophyte or cryptophyte, rendering it hard to infer exactly how organellogenesis changed the endosymbiont genome. To counter th

  30. robot vacuum cleaner sale
    How to Maintain a Robot Vacuum Cleaner

    Robot vacuum cleaners are convenient efficient, reliable, and safe to maintain. They utilize advanced sensors to create a map of your home, and they use an array of roller brushes, side brushes, and mops to clean thoroughly.

    Many models are compatible with sma

  34. Recommended Website
    Buy German Shepherd Dog Switzerland

    Purchase German Shepherd Dog Switzerland from credible breeders, not breeders who are greedy or profit-driven. They follow the world FCI standard, and have rigorous health testing of their dogs.

    A great White Swiss Shepherd requires two hours of daily exercise i

  37. https://www.reddit.com/user/PollutionConfident47/
    Marzenie o idealnym mieszkaniu to coś, co towarzyszy wielu z nas. Każdy z nas ma swoją wizję wymarzonego miejsca, które będzie odzwierciedlać naszą osobowość, styl życia i indywidualne potrzeby. Czy marzysz o przestronnej kawalerce w centrum miasta, czy może urokliwym, przytulnym lokum na przedmieściach? Niezależnie od preferencji, stworzenie mieszkania, które będzie dla nas azyl

  39. https://besadly.com/
    terdapat banyak tanda-tanda dari suatu situs slots online yang aman serta nyaman di indonesia. pelbagai situs slots online yang ada itu benar-benar punyai beberapa tanda-tanda khusus. ciri-ciri teristimewa yang ada itu dapat dipakai langsung oleh banyak petarhnya. berikut di bawah ini yaitu ciri-ciri – ciri-ciri dari sebuah situs slots online yang aman dan nyaman.

    websitenya aktif 24 jam

    ciri-ciri pert


  40. Buy Caluanie Muelear Oxidize From Reputable Suppliers

    Caluanie muelear canada is a chemical compound that has numerous industrial applications. It is essential to adhere to all regulations when buying and using this chemical. The following tips will assist you in purchasing the right caluanie Oxidize from trusted suppliers and follow proper safety protocols.

    Lega

  42. high back 3 seater fabric sofa
    Fabric Sofa Bed 3 Seater

    Elegant and practical, the fabric sofa bed 3 seater includes beauty sleep area to your home. Providing ample seating for household film nights, it easily transforms into a glamorous double bed to accommodate over night visitors. Its clean lines and simple and easy style complement any decoration. Its bench s

  43. click the following webpage
    Convertible Crib Sets

    Convertible crib sets include a cot, chest of drawers and changing table in one piece of furniture. They last till a kid is old enough for a full-sized bed. They likewise conserve parents the expense of buying multiple beds as their child grows.

    These convertible cribs are made from slats, whic

  44. 카지노 오토
    Online casino marketing promotions are strategies designed to attract new gamers and retain existing ones by supplying various incentives plus engaging experiences. These types of promotions are important components of the particular digital casino business, which is very competitive and needs innovative marketing methods to be noticeable. Beneath is an exhaustive look at on the

  45. http://123vip.limited/

    123VIP เว็บไซต์พนันออนไลน์ที่มาแรงแซงทุกหนทุกแห่ง ด้วยระบบปฏิบัติการที่ล้ำยุค มีเกมส์ใหม่ๆให้เลือกเล่ ์ การเล่นเกมที่แสนจะตื่นเต้น เล่นเเล้วบันเทิงใจ แถมตื่นเต้นจนกระทั่งหัวใจจะระเบิด เพราะเหตุว่ามีเงินรางวัลเยอะแยะรออยู่ เพียงแค่กดสมัครเล่นเกมกับ ค่ายเกมอันดับต้นๆอย่างพวกเรา รีบสมัครเล่นกับพวกเราเลย เเล้วการเล่นเกมส์พนันของคุณจะไม่ดังเดิมอีกต่อไป จะมีเเต่ความสนุกสนานร่าเริงที่มากปรับเงินเพิ่มขึ้นรางวัลมากมากยิ่งขึ้

  46. drain unblockers
    This article is going to provide you with well proven advice about plumbing. Sometimes you are not sure about what you can trust and what you cannot. Use the great tips and tricks that have been gathered here and you can be assured you are getting tried and true advice.

    If your pipes bang when you turn on the water, and all the pipes are

  48. http://123yes.io/

    123YES เว็บไซต์พนันออนไลน์ ที่มาแรงชั้น 1 ได้รับความนิยมเยอะที่สุดเวลานี้ ซึ่งพวกเราเป็นวิถีทางกระบวนการทำเงินให้แก่เหล่านักการพนันออนไลน์ทั้งโลก เว็บไซต์ของพวกเราเป็นมีระบบระเบียบฝาก-ถอน ออโต้ที่ไวที่สุด แล้วก็มีระบบระเบียบล้ำยุค ไฮเทค เป็นเว็บไซต์ตรงไม่ผ่านเอเย่นต์ และก็มากับการบริการที่ดียอด มีแอดไม่นรอให้คำแนะนำในทุกปัญหาตลอด 1 วัน สมัครง่ายเล่นง่าย ฝาก-ถอนไว ระบบเสถียรที่สุดตอนนี้ เป็นที่เรียกร้องของกรุ๊ปนักพนันกลุ่มมากมา

  50. casino
    However, though the mechanics the different, you still locations terms of methods the games are brandished. Being online, the betting and playing in casino games involve a different set of rules. To obtain person to be familiar training can actually be rules or mechanics on how to play online casino games, one would best read an online casino guide first.

    The re

Leave a Reply

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