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.

319,597 thoughts on “Department Store Industry”

  1. rhamnolipid surfactant
    the hybrid fibril exhibits a different cellular receptor obligating performance from checking unmarried coinages collagen filament . These determinations ply ideas for the design and development of new collagen-based biomaterials and tissue technology research.Protocol for embedded 3D impression of essence tissues expending thiol-norbornene collagen.Here , we salute a protocol for 3D publishing heart tissues using thiol-norborne

  2. corporation filings
    Just this morning, my workout, here in Chiang Mai, Thailand where I’m visiting, consisted of 600 squats, push-ups, and crunches; along with a good, hard, 6-mile run around the river the actual world center of town. I did each of that from a pair of sandals I fashioned out of an old car mat and some shoe shoelaces!

    The exact same thing hap

  3. deutscher schäferhund kaufen
    Choosing a Purebred German Shepherd Breeder

    At an exhibition of dogs in 1899, Von Stephanitz saw a dog named Hektor Linksrhein that perfectly matched his ideas about the breed. He bought him and renamed Horand von Grafrath.

    The breed standard states that hind angulation should match t

  5. deutscher schäferhund lebenserwartung
    Buy are smart and love to please, which makes them great for obedience training. They also excel in dog-related activities like agility and lure coursing. They excel in other roles that require courage and grit like police, military and disability assistance.

    Look for bree

  7. adult adhd treatment
    Medications and Other Treatments For ADHD

    Finding the right medication could take time as everyone reacts differently. It is also essential to combine medications with other treatments that treat behavioral and emotional issues.

    Adults who suffer from ADHD have trouble sleeping.

  9. loft bed with stairs for adults
    Introduction

    When it comes to enhancing space in a bed room, specifically in homes with numerous children or limited square video, a staircase bunk bed can be a practical and stylish service. Not just does it supply sufficient sleeping area, however it likewise offers storage alternatives and a fun style component

  10. führerschein kaufen ohne vorkasse
    How to Get a Driving License in Germany

    Germany is a car friendly country that has lots of parking spaces and efficient autobahns. However, it is essential to know the rules of the road prior to driving in Germany. You must pass a written exam before you take your practical test.

  11. zbet911

    คาสิโนคนเล่นมากมาย โลกที่ความเบิกบานใจและก็การเดิมพันมีการเปลี่ยนอย่างน่าทึ่งด้วยการเกิดของคาสิโนออนไลน์ เดี๋ยวนี้ผู้เล่นมี ับในการเข้าถึงเกมคาสิโนที่พวกเขารู้สึกชื่นชอบแล้วก็ทดลองเสี่ยงดวงจากที่บ้าน สิ่งจำเป็นอย่างหนึ่งของประสบการณ์การเดิมพันออนไลน์นี้เป็นกระบวนการสมัครสมาชิก ซึ่งปฏิบัติภารกิจเป็นประตูสู่โลกที่ความรื่นเริงใจรวมทั้งผลตอบแทนที่บางทีอาจเกิดขึ้น ในเนื้อหานี้ พวกเราจะเจาะลึกถึงความสลับซับซ้อ

  12. light office
    From of the info given within the table, the chemical composition at the stripe is completely different from the design composition of the glass tube. The thermal growth coefficient of glass samples was measured with the expansion coefficient tester of dilatometer Netzsch DIL 402 model. The flattened glass tube is processed into an enlargement strip that meets the test requirements. When processing the striped glass tube, the strip

  13. Accident Injury Lawyers Near Me Tools To Improve Your Daily Life Accident Injury Lawyers
    Near Me Technique Every Person Needs To Learn accident injury Lawyers near me, Brewwiki.win,

  14. e7080 inhibitor
    The analysis is made to examine whether alternate loading regimens, equivalent to physiological conditions, concerning shear in addition to compression can enhance collagen manufacturing. METHODS Finite element models had been developed to ascertain the way the local chondrocyte conditions within agarose constructs were impacted by a selection of fixed and dynamic loading re

  17. gas appliance check Newport Pagnell
    Gas Safety Checks in Newport Pagnell

    A CP12 certifies that gas appliances and pipes are safe to use. Only Gas Safe registered engineers are authorized to issue them.

    A licensed plumber in Newport Pagnell will come equipped to handle a variety of heating and plumbing

  18. Gas safety certificates Newport Pagnell
    Gas Safety Certificate Newport Pagnell

    Gas safety certificates are also referred to as CP12 Certificates. They are important documents which verify the safety of gas appliances in your home. Gas Safe engineers are usually the ones who issue certificates. This was done by CORGI

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

    German Shepherds are a great choice in a variety of scent-work tasks including cadaver searches or narcotics and explosives detection. These roles can require extensive obedience and safety training.

    <

  20. Newport Pagnell gas engineers
    Why Landlord Certificates Are Important

    A gas certificate is legal document that indicates that the property has been inspected and all gas appliances have passed the required tests. Landlords should have these documents before renting their properties. These documents are also required for selling a house.

  21. wie kann ich meinen führerschein kaufen
    German Driving License For Sale

    You can swap your current driver’s licence from one of the member states of the EU or EEA to a German one. You will have to adhere to the regulations of the new license.

    Purchase a 100 100% authentic German driving license for sale at Trippapersonline. The process is systematic and can be completed wit

  22. https://waterloogardens.com/
    Banyak nama nama judi online saat ini memberi sangat banyak keringanan untuk banyak bettor lakukan penempatan taruhan. Untuk beberapa umumnya dalam perihal tersebut beberapa bettor dapat mendapati sejumlah keuntungan dengan masuk di dalam agen taruhan yang pas. Masuk dalam agen taruhan terbaik jadi satu diantara kesempatan yang dapat mengantar pada beberapa keuntungan.

    Pada umumnya dal

  23. deutscher schäferhund lebenserwartung
    German Shepherd Dog Care

    To be a good dog, German Shepherds need early socialization and constant training. They must be mentally stimulated to avoid boredness and destructive behavior.

    Several inherited diseases cause recurring vomiting or diarrhea in German Shepherds. They require regular vet checkups and preventative medicines.

  24. gas appliance check Newport Pagnell
    Why It Is Important To Choose Heating Engineers That Are Qualified And Insured

    A bathroom that is clogged is one of the most frequent problems that can occur. It is important to be aware of how to handle these issues in a timely manner to limit damage.

    Plumbers in Newport Pagnell can deal with many different problems. They also specialise in

  25. adult adhd treatment
    Treatment For Adults ADHD

    Counseling (psychotherapy), and medication are used to treat people suffering from adhd. The medications used include stimulants and nonstimulants aswell in certain antidepressants. It can take some time to determine the appropriate dosage and medication. A regular clinical monitor is essential.

  26. siti di scommesse non aams
    Il mondo delle scommesse online è in continua evoluzione, con una varietà sempre crescente di opzioni per gli appassionati. Mentre in Italia molti si affidano ai bookmaker AAMS, esiste un’interessante alternativa rappresentata dai bookmaker non AAMS. Questi siti di scommesse offrono opportunità diverse, spesso con quote più vantaggiose e un’ampia gamm

  28. https://ampm11slot.com/
    Cari bandar agen taruhan judi online bisa dipercaya Indonesia 2021 itu bukan suatu yang simpel buat dilaksanakan. Kadangkala dibutuhkan banyak alasan untuk memutuskan suatu bandar broker judi online yang benar-benar dapat dipercayai buat main. Janganlah sampai tidak benar atau keliru dalam tentukan alternatif. Lantaran kalaupun salah malahan rugi mendatang.

    Beberapa betaruh pastilah tidak mau memperoleh rugi. Jika

  30. Apoptosis signal
    In sensitiveness evaluation, media promotion prices is offset by reductions in health care bills spending of smoking among all payers combined within 6 many years in all tested situations. CONCLUSIONS 1, 5 and 10-year antitobacco media campaigns all yield web savings within 10 years from all views. Multiyear campaigns give considerably greater cost savings than a 1-year

  31. 프라그마틱 무료게임
    Pragmatic Play Slots

    Pragmatic Play, a renowned online gambling software company, offers a variety of games. Its products include iGaming tools and tournaments that are gaining traction within the industry.

    Pragmatic Play slot games are compatible with laptops and

  32. wooden convertible crib
    Graco Hadley 4-in-1 Convertible Crib With Drawer

    A crib is the structure of any nursery, and you desire it to be safe, well built and visually pleasing. This model satisfies all of those requirements.

    baby cots that convert to toddler beds ‘s likewise Parent Tested Parent Approved and GREENGUARD Gold accredited, and moms and dads report that it takes ab

  33. https://www.pinterest.com/10sunwinnet/
    trò chơi bài luôn là một hoạt động yêu thích của tín đồ cá cược. Với sự phát triển của công nghệ trực tuyến, trò chơi bài trực tuyến đã trở thành một lựa chọn phổ biến của game thủ. Không chỉ là một trò chơi, game bài còn rèn luyện người chơi những tư duy và thư giãn cực kỳ hiệu quả.

    leetcode.com/u/10sunwinnet/ trò chơi các game bài online như bài cào luôn là sự lự

  35. 南向通
    在當前瞬息萬變的金融市場中，人民幣利率互換（RMB IRS）逐漸成為投資者及金融機構的重要工具。這不僅僅是一個新的金融產品，更是一個能夠為各類型的市場參與者創造豐富機會的契機。隨著中國經濟的持續增長，人民幣的國際化進程正不斷加快，這讓人民幣利率互換成為了一個值得關注的金融戰略。

    透過人民幣利率互換，投資者和企業能夠更好地管理利率風險，優化融資成本，並規劃未來的現金流。那麼，您是否曾經考慮過如何有效利用這項金融工具來達成您的財務目標？隨著我們深入探討RMB IRS的各個方面，您會發現這項工具不僅能幫助您降低財務風險，還打開了全新的市場應用可能，特別在資產配置和風險管理的領域，無論是對個人投資者還是機構投資者，這都是一個重要的課題。

    <h

  36. 프라그마틱 무료게임
    Pragmatic Ranking

    The advancement of implementation research and practice requires measures that are well-constructed and practical. This study aimed to establish a practical measurement criterion that was developed by a stakeholder-led process. A systematic review of literature and semi-structured stakeholder interviews produced 47 pragmatic rating criteria

  37. auto vacuum
    Robot Vacuum Cleaners – Which Ones Are the Best?

    Many robots are connected to apps and can be voice activated, allowing you to control them remotely. Find a model with a large dust bins and a long battery. Some models can be recharged and then resume cleaning exactly where they stopped, a feature that’s particularly useful for la

  38. Boiler servicing
    SAVING CASH and Water: Practical Ways to Lessen Plumbing Costs Are you tired of viewing your hard-earned cash flow down the drain every month Are you annoyed by skyrocketing water bills that seem to drain your money faster than you are able to say “leaky tap” Well, you’re not by itself. Many people struggle with high domestic plumbing costs, but the great news can be that there are practical and effective methods to slice down on the

  39. wooden convertible crib
    Convertible Crib With Changing Table

    An article is a written piece that informs a story or shares info. It’s a great way to develop trustworthiness and engagement with your audience.

    Easily converts to a young child bed and full-size bed (bed rails sold separately). Rugged and constructed for the long-t

  40. موقع العرب
    Are you overwhelmed or excited when you think about getting some new furniture for your home? If you are intimidated, you ought to spend some time learning more about how to do it well. In this article, you will find a great deal of valuable information.

    If you are shopping for a new piece of furniture in order to replace an older one, keep the old one in mind. What did you like about your old piece? What didn

  41. baby cots that convert to toddler beds
    Picking a Convertible Cot

    Convertible cribs use a long-term nursery service, transforming into a toddler bed, day bed and complete size bed. Natart’s Metro convertible cot is a fantastic example, offering moms and dads flexibility and performance for their child’s sleep sanctuary.

    Unlike traditional cribs, convertible ones require no box sprin

  43. https://www.reddit.com/user/PollutionConfident47/
    Urządzanie mieszkania to sztuka, która łączy w sobie funkcjonalność z estetyką. Każda przestrzeń może stać się magiczna, gdy tylko zadbamy o detale oraz dopasujemy elementy wystroju do swoich indywidualnych potrzeb i gustów. Mieszkanie to nie tylko cztery ściany; to miejsce, w którym spędzamy czas z rodziną, przyjaciółmi i gdzie możemy w pełni wyrazić samych siebie. Właściwe pode

  44. 3 seater grey fabric recliner sofa
    Men’s Three Piece Suites Fabric

    A males’s three piece match includes a jacket, pants and waistcoat or vest. of formal clothes is perfect for different events and can be coupled with a variety of accessories.

    A 3-piece suite speaks volumes about confidence and professionalism. It is the ideal option for board meetings, celebrations and other officia

  46. best affordable robot vacuum
    Best Rated Robot Vacuum Cleaner

    While robot vacuums are fantastic at keeping your floors clean but they aren’t able to replace a full-size vacuum. Even the most powerful robots have difficulty getting deep into carpets and rugs and they can get tangled with cords and socks.

    Stayin

  47. 프라그마틱 공식홈페이지
    Diplomatic-Pragmatic Korea and Northeast Asia

    The diplomatic de-escalation of Japan-South Korean tensions in 2020 has brought attention on cooperation in the field of economics. Despite the fact that the dispute over travel restrictions has been rebuffed by the government and bilateral economic initiatives have remained or expanded.

    Brown (2013) was the first to document

  48. msa-2agonist
    Structural equation modeling had been utilized to make a focused longitudinal course model. RESULTS Formal personal involvement at standard had been inversely linked to the wide range of chronic conditions at 4-year followup. We identified two significant longitudinal mediation habits 1) formal social involvement predic

  49. blackout tint for home windows
    For instance, good glass on entry doorways linked to lock sensors can routinely switch to privacy mode when doors are locked. Similarly, windows or partitions could be programmed to tint throughout peak sunlight hours without handbook intervention. Switchable smart glass, as its name suggests, is operated by a simple electrical switch, controlling the opacity of the glass from clear to translucent.

    <br

  50. bunk bed stairs with drawers
    Loft Bunk Bed with Stairs: A Comprehensive Guide

    Intro

    A loft bunk bed with stairs is a useful and space-saving furnishings piece that is perfect for shared rooms, little spaces, or kids’ bed rooms. This kind of bunk bed integrates a raised bed with a set of stairs for easy access to the top bunk, making it a ve

Leave a Reply

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