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.

257,063 thoughts on “Department Store Industry”

  1. Newport Pagnell gas safe engineer
    will be able assist you with any plumbing problems. They can identify any problems and fix them as soon as they occur. They can also take care of your heating systems.

    Only engineers who are registered with the Gas Safe Register may perform a CP12 Gas Safety Check. You should always ask for their ID card be

  2. 프라그마틱 슬롯 사이트
    What is Pragmatics?

    Someone who is able to grasp pragmatics is able to politely dodge the issue, cleverly read between the lines, or even negotiate turn-taking norms in conversation. Pragmatics takes cultural, social and contextal aspects into consideration when using language.

    Consider this example: The news report states that

  3. Newport Pagnell gas safe engineer
    Working With a Gas Safety Engineer Newport Pagnell

    Gas safety certificates (CP12s) are legal documents that confirm your home’s gas appliances, pipework and other safety standards. Gas Safe registered engineers should be used for all tasks. Request to see their Gas Safe ID before they begin.

    <br

  4. emricasan inhibitor
    We additionally describe some restrictions and problems in working together with mouse models of neurodegenerative LSDs. Copyright © 2020 Favret, Weinstock, Feltri and Shin.Background The terminal ileum and ileocaecal junction form a transition zone in a somewhat inaccessible percentage of the gastrointestinal tract. Little is famous in r

  6. best robot vacuums
    Robot Vacuum Cleaner Black Friday Deals

    When it comes to saving time on cleaning, a robotic vacuum cleaner is an absolute game changer. These small machines vacuum up pet hair, crumbs and dust while prioritizing messier rooms.

    Budget-conscious consumers can choose models that cost less than $300. Midrange models come with navigation and automatic em

  7. schäferhund kaufen
    Should You Buy a German Shepherd?

    A German Shepherd is an expensive and emotional purchase. You can avoid making a mistake that could cost you money and time by conducting your research prior to purchase.

    Consult your local veterinarian about ethical breeders. Also, ensure that you and your famil

  10. three seater fabric sofa
    Buying a 3 Seat Fabric Sofa

    A 3 seat fabric sofa is the best choice for a modern-day or standard living-room. It is likewise a great choice for smaller areas that can not accommodate a large sectional.

    The makeup of a fabric’s thread can inform you a lot about how it will feel and hold up to wear. Try to find a tight weave that is durab

  11. visit this website
    Undiagnosed ADHD in Adults

    While ADHD symptoms are more prominent in children, they can still manifest as adults. The constant lateness, the careless mistakes and impulsive decision-making may lead to frustration and a low self-esteem.

    Relationships can be affect

  12. https://pastipake.com/
    Terdapat banyak metode yang bisa Anda memanfaatkan dengan broker judi online buat mendapatkan uang banyak. Anda bisa jadikan judi sebagai cara khusus sama seperti yang pihak lain pakai. Coba buat memanfaatkan cara simple dalam taruhan sama dengan yang seseorang melakukan juga. Anda tak harus masuk di permainan langsung kalau memang takut ketangkap oleh polisi. Sebaiknya buat gunakan metode yang lain ada.

    <

  15. in nón theo yêu cầu
    Whether you’re a professional or an enthusiast, the Ecotank printer has all of the features you need to print with ease. From the ink storage system, which allows you to carry 40,000 pages of ink, to the larger print size and a low cost per page, the ecotank printer will have you printing like a pro in no time.

    Reset ink levels

    Unlike standard ink cartridges, Eco

  16. Newport Pagnell gas safe engineer
    Gas Safe Newport Pagnell

    If you want to do any work that involves gas within your home, you should always contact an expert who is certified. These professionals will be competent to fix your gas appliances and inspect the gas pipelines within your house.

    The

  17. in nón bảo hiểm
    The Epson EcoTank Photo ET-8550 finds a nice balance of price and quality for in-house printing of photos and graphics. It comes with enough ink to print 5,500 black pages and 4,900 color pages. It also has a low per-page cost, and saves on printer maintenance with its refillable ink system. That makes it one of the cheapest and most efficient inkjet photo printers out there.

    Epson’s E

  18. ratu 311
    seseorang betaruh slots online mesti selalu mengerti bermacam arti penting dalam permainan itu. dengan mengenal semuanya makna yang berada di permainan atau permainan slots online itu, keuntungan akan simpel diterima. lalu, apa istilah krusial di perjudian slots online itu? di bawah ini ialah jejeran makna utama di perjudian slots online yang harus dipahami banyak betaruh.

    spin

    <br

  19. Related Web Page
    Soon our staff members beginners will go to have no choice. I will have to check this official federal grants site acquire our free grants. Anyone have an aspirin? Well it is time to learn ways to speak like bureaucrats. If Fed X, and each one of these large corporations are receiving federal grants then, where are our bait?

    TIP #1: Out

  20. www eu9
    Trong thế giới cá cược trực tuyến hiện nay, EU9 nổi lên như là một trong những sân chơi đáng tin cậy và did trọng nhất. Với việc cung cấp đa dạng các trò chơi kéo dài từ cá cược thể thao đến các trò chơi gambling establishment, EU9 mang đến cho người chơi những trải nghiệm thú vị sau đó hấp dẫn. Đây là nơi mà những người đam mê cá cược dễ thoải mái thể hiện khả năng cho mình và chinh phục những phần thưởng lớn.

    <b

  21. More Bonuses
    Upgrade Your Living Space With a Grey 3 Seater Fabric Sofa

    Upgrade your living-room with an elegant grey 3 seater fabric sofa. This colour is among the most popular and flexible, whether you want a light or dark shade to fit your home.

    Before you buy a 3 seater sofa, it is essential to comprehend stand

  22. single oven electric cooker
    Single Ovens – Bringing Restaurant-Inspired Cooking Into Your Home

    Single ovens are great for baking, roasting or cooking for large parties. Features like zoned heating let bake various dishes at the same time without mixing flavors.

    You can select the best oven for your family by considering

  23. robot cleaner amazon
    Best Robot Vacuum Cleaner and Mop

    If you’re looking to clean up messes quickly then a robot vacuum and mop is the best way to go. The top robot vacuums and mops I’ve tested are top-quality in navigation and mapping, picking up Cheerios, tangled wires and fake dog turds without leaving them behind.

  24. https://www.credly.com/users/easeeye45
    在當前全球金融市場中，人民幣利率互換（RMB IRS）正逐漸成為投資者和金融機構關注的焦點。隨著中國經濟的不斷增長及金融市場的逐步開放，RMB IRS為金融市場帶來了新的機遇與挑戰。这种金融工具不仅能够为企业和银行提供风险管理工具，还能为投资者开启新的收益渠道。然而，RMB IRS也伴随了一些新的风险与不确定性，如何有效利用这一工具成为了众多市场参与者的关切。

    在此背景下，多家权威机构的报告显示，RMB利率互换市场在过去几年的交易量大幅增加。例如，根据中国人民银行发布的数据，2022年人民币利率互换的成交量已突破三万亿人民币，这显示出该市场的迅速发展和对投资者的吸引力。在面对如此巨大的市场潜力时，投资者及金融机构应如何抓住这一机遇，同时规避潜在的风险，成为了本文探討的核心。

    <

  25. robot cleaner amazon
    A Robot Vacuum That Also Mops

    Many robotic vacuums or mop have features such as scheduling, self-emptying docks and other features that will ensure your floors are spotless. They can be expensive especially the ones that do both jobs.

    The best robots have the ability to map and avoid obstacles, which helps t

  26. Newport Pagnell gas safe engineers
    Choosing Gas Fitters Newport Pagnell

    When choosing a Newport Pagnell plumber, you should consider several factors. You must consider their packages review from customers, their reviews from customers, and their services. Compare their pricing to find the most competitive price.

    <b

  27. comfiest sectional couches
    The Comfiest Sectional Couches

    Much of the sectional couches on our list are customizable, consisting of seat depth, chaise configuration and relatively endless material options. Walsh recommends picking plush, textured fabrics for convenience and performance-grade materials if you have kids or family pets.
    <br

  28. nocodazole inhibitor
    Cryobiopsy had been discovered becoming contributive in every the clients just who didn’t meet Berlin criteria for acute breathing stress syndrome. No significant complications had been associated with the process. Conclusions Cryobiopsy is a secure treatment with a high diagnostic yield in a selected group

  29. vapme shisha user generated content examples
    Inside the ever-evolving planet of vaping, the particular year 2024 provides exciting innovations, plus the Vapme 600-18000 Puffs Vape knowledge is leading the particular charge. This throw-away vape not merely provides to seasoned vapers but also encourages newcomers to discover a vast surrounding

  30. làm nón bảo hiểm theo yêu cầu
    The Epson EcoTank family can help you find a printer that suits your needs, whether it is for home or business. By using only the water needed for the printer itself, you can save money, energy, and space. Whether you are printing photographs, documents, or even food labels, the Epson EcoTank printers offer a reliable, cost-effective solution.

    WorkForce ET-4750

  31. Newport Pagnell gas engineer
    Gas Certificates In Newport Pagnell

    Gas certificates in Newport Pagnell play a crucial role in guaranteeing the safety and compliance of gas devices and installations. As a legal requirement for landlords and residential or commercial property owners, gas certificates, also understood as gas

  32. đặt nón bảo hiểm theo yêu cầu
    quà tặng mũ bảo hiểm et-3850 All in One cartridge-free supertank printer will work for you whether you are looking for an All in One printer to print from your home or office. The printer boasts many great features including high quality output, connectivity and a low price. It also has a tank that can hold three gallons.

    Color accuracy

    <b

  33. single electric oven and grill
    Choosing the Right Single Electric Oven With Grill

    Electric ovens are a key component in the kitchen. They transform raw ingredients into delicious culinary masterpieces. The right oven can save energy and money, and guarantee consistency and precision in cooking.

    This oven comes with all

  35. 6ft Shipping Containers
    Using Confined Space Containers to Prevent Hazards

    Confined spaces are unique environments that could pose numerous hazards. They can be a result of oxygen deficiency, toxic atmospheres hazardous physical hazards and flammable atmospheres.

    Since these areas are confined and are not accessible to the public,

  36. Newport Pagnell gas safe engineer
    Gas Safety Checks and Drainage Repairs

    A reputable plumber from Newport Pagnell can perform a gas safety inspection on your property. This includes a thorough inspection of your gas appliances as well as pipes. They can also assist with any drainage issues you may be facing.

  37. ratu311
    Blog judi online bisa dipercaya terang jadi perihal yang kerap Anda temui di halaman pelacakan sewaktu masukkan keyword judi. Bermain permainan ini di web yang berada pada jelejah penelusuran pastinya jadi hal yang lebih dikedepankan oleh Anda. Soal ini berlangsung ingat Anda tidak penting datang ke casino buat bermain permainan ini. Namun demikian, keluasaan ini sekalipun tidak memberi resiko dapat kemenangan yang bakal jadi punya Anda.

    <b

  38. visit this site right here
    How to Find the Best Car Locksmiths in Bedfordshire

    A trusted locksmith can help with a vast array of residential and commercial lock requirements. They can cut keys, fix damaged locks, and set up brand-new security systems. Their services are offered 24 hours a day.

    The county is home to a variety of historical sites, consisting of Bedford Castle and the N

  39. baglur
    “@context”:”https://schema.org/”,”@type”:”School”,”name”:”United International School”,”image”:[],”priceRange”:””,”servesCuisine”:””,”telephone”:”094835 14755″,”address”:”@type”:”PostalA

  40. Jewelry Supplier China
    The year 2025 marks an important milestone for precious jewelry supplier China, wherever innovation and technological innovation converge to redefine the industry landscape. Oriental suppliers are from the forefront regarding adopting cutting-edge technologies like 3D publishing, CAD modeling, and automated production techniques. This blend of tradition and innovation packages them apart as leaders in the global jewelry indu

  41. visit this website
    Adult ADHD and Comorbid Disorders

    Many people with ADHD have comorbid conditions such as major depression (Kessler and co., 2006). Many patients do not respond to depression medications and may benefit from psychotherapy.

    Medications that most effectively improve the most fundamental

  42. gaggia brera bean to cup Coffeee UK
    Gaggia Brera Silver Espresso Machine

    The Gaggia Brera is an Italian made bean-to-cup machine with authentic stainless steel accents. It offers 2 programmable espresso and long coffee buttons and includes a pannarello steam wand for coffee shop favorites like lattes & & coffees.

    This machine is

  43. this website
    This synthesis may provide insights into keratinization, which provides physical insulation and constitutes an essential innate integumentary defense system.Although hemp seed (HS) oil is characterized by more than 80% polyunsaturated fatty acids (PUFAs), a very high ω-6-to-ω-3 ratio is not a popular commodity. The aim of this work was to provide useful data about the bioactive components and cannabidiolic acid content

  44. 프라그마틱 무료슬롯
    Pragmatic Slot Tips

    Pragmatic Play slot machines are popular online casino slots that provide many different features. Multipliers and Bonus Rounds are just a few of the features. These features can enhance the gambling experience and allow players to win huge winnings.

    Always be responsible when gamblin

  45. adhd in adults symptoms and treatment
    ADHD Symptoms and Treatment in Adults

    Many adults have difficulty keeping up with their daily tasks. They are often frustrated and mood swings. If you think you might be suffering from ADHD consult your primary health care provider or mental health professional for an evaluation.

    The criteria for determining adult ADHD is the same as that for chi

  47. https://sagliklihayat.net/
    Bahis dünyası, her geçen gün yeni oyuncularla hareketlenirken, Betnano da bu alanda kendine hızla yer edinmeyi başaran bir platform olarak öne çıkıyor. Kullanıcı dostu arayüzü ve geniş oyun seçenekleri ile her türden bahis severin ilgisini çeken Betnano, sunduğu fırsatlar ile de dikkat çekiyor. Betnano, spor bahislerinden casino oyunlarına kadar birçok alanda zengin içerik sunarak, kullanıcılarının heyecanını artırmayı hedef

  48. schäferhund kaufen
    Health Issues That Affect German Shepherd Life Expectancy

    German Shepherds peak between the ages 2 and 6. They’re at their peak in terms of physical fitness and mental sharpness.

    Their size puts them at a greater risk of developing cancer, muscle and joint issues, and other health conditi

  49. protein inhibitors
    Survival of clients with typical malignancies has improved somewhat using the continuous growth of radiotherapy and chemotherapy, as well as enhanced surgical procedure of resectable major tumours. This short article describes the medical method of presentation, pathophysiology, diagnosis and management.Radial head fractures are a common break invo

  50. best budget robot vacuum cleaner
    Robot Vacuums With Mop

    Some robot vacuums can also mop and vacuum. These models are ideal for homes with hardwood floors. They typically include reservoirs that are filled with water or a cleaning solution microfiber cloths and sensors to help you navigate around furniture.

    If the battery is not fully charged during

Leave a Reply

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