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.

254,221 thoughts on “Department Store Industry”

  3. Highly recommended Internet site
    Robots That Vacuum and Mop

    Robots that vacuum and clean offer the convenience of cleaning both dry debris and wet mess in one session, without having to switch devices. They can also save space when compared to two separate units, particularly in smaller living areas.

  4. adhd treatment for adults medication
    ADHD Symptoms in Adults

    If symptoms persist, think about seeking mental or medical treatment. Stress and physical health issues can trigger symptoms similar to ADHD.

    Treatment options include medication as well as lifestyle changes and counseling. Your doctor can assist you in finding the best combination of medications t

  6. gaggia brera super automatic espresso machine
    Gaggia Brera Espresso Machine Evaluation

    If you desire a dependable competitively priced super automatic espresso machine with a steam wand that makes decent cappuccinos and lattes then the gaggia brera might be ideal for you. It provides taste quality and all of the benefit of a contemporar

  7. nu gaan
    Het frame wordt opgevuld met isolatiemateriaal en daarna afgewerkt met gipsplaten. Geluidsisolatie voor de muur is één van de beste mogelijkheden om geluid van buitenaf of van de buren te dempen. Goede geluidsisolatie in je woning is belangrijk om overlast tegen te gaan.

    Isoleren-expert.nl is dé isolatie specialist van Nederland. Op onze website vind je gratis informatie, Prijzen & Advies voor het pl

  8. adhd in adults symptoms and treatment
    Untreated ADHD in Adult Relationships

    It can be difficult to maintain a long-term marriage or relationship with someone who suffers from ADHD. It’s even more difficult when the non ADHD spouse feels that they have to constantly monitor their spouse and supervise their spouse to ensure that they stay on the right track.
    <br

  9. nitrous oxide buy

    N2O gas has become a cornerstone in the kitchen, catering, and hospitality industries. Its versatility, particularly for whipping whipped cream and other applications, makes it an invaluable resource. covers quick gas laughing gas, its implementations, safety, and how to source high-quality food-grade N2O.

    What

  10. treatment for add
    Treatments For ADHD

    Treatment for adhd involves psychotherapy, medication, as well as relaxation techniques. Stimulant drugs can improve symptoms like hyperactivity and inattention. They can also lessen anxiety, irritability and tics. They can also cause adverse effects, such as an upset stomach and a slight increase in heart rate.

    T

  11. just click the up coming post
    Include Seating to Your Living Room With a 3 Seater Fabric Sofa

    A fabric 3-seater sofa supplies a lot of seating for cosy nights at home and sociable entertaining. Generally, these sofas can be found in either modern or standard designs which are easy to incorporate into different living-room decoration styles.

    <

  12. single oven with grill electric
    Choosing the Right Oven For Your Kitchen

    Ovens are a crucial element in any kitchen. If you’re replacing your old oven or redesigning your kitchen entirely selecting the best oven for you is essential.

    There are a variety of options. From double ovens that slot into a cabinet at eye level a

  13. convertible cot
    Convertible Crib Sets

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

    These convertible cribs are made from sla

  15. wbc247가입
    가장 안전한 온라인 카지노는 무엇입니까?

    국내 환경에서의 안전은 100% 보장될 수 없습니다. 하지만, 더 안전한 카지노 사이트, 안전하다는 점에서 믿을 수 있는, 온카25와 같은 믿을 수 있는 식음료 검증업체를 통해 더욱 철저하게 검증하고, 정직하게 운영되기 때문에 더욱 안전합니다.

    이와 같은 카지노 사이트를 확인하고 사용하는 가장 좋은 방법은 무엇입니까?

    최근 몇 년 동안 음식, 안전 및 검증을 전문으로 하는 많은 레스토랑과 카지노 사이트에서 보증금 시스템과 계약을 체결했습니다. 이 사이트에서 식사 및 달리기 사고에 대해 걱정할 필요가 거의 없을 것입니다. 이러한 웹사이트는 다른 주요 도박 웹사이트와 많은 유사점을 공유합니다. 만들기 안전

  16. Read the Full Content
    Add in Adults Treatment For Attention Deficit Hyperactivity Disorder

    Attention deficit hyperactivity (ADHD) affects the brain and makes it difficult to control impulsivity, manage exciteable behaviors and pay attention. Adults suffering from ADHD have many difficulties in their daily lives, including difficulties at school and work and

  18. linked web site
    Gaggia Brera Super Automatic Espresso Machine Review

    The gaggia brera super automatic is an excellent machine for those aiming to begin developing espresso. Its user-friendly display screen and programmable settings permit for simple usage It likewise has a terrific warranty.

    The Optiaroma fe

  20. 3 piece suites fabric
    3 Seater Fabric Sofa Recliner

    A 3 seater fabric sofa reclining chair is the perfect blend of looks and convenience. Pocket sprung seats and soft inset arms lay the structure genuine relaxation and a power recliner chair lets you find your perfect seating position at the touch of a button.

    There’s a substantial ra

  24. https://backlinkend.co.kr/
    Chief among the specialised talents that your company must outsource, you should outsource Lookup engine optimization articles material composing.

    Generating Search engine optimisation material is the specialisation that seamlessly puts together insight from two critical locations: how the human psyche performs, and exactly how try to find engines spider. Inside the science of search phras

  25. wikipedia handbags
    First, I want to give Oposition better two sorts of names. The reddit first new replika new layer is eligible to reverse the picture. After designing and recent knowledge, the consumer has signed Saint-Imier a contract with Vacheron Constantine and payment cost. At that BelleArti time the tall crown of the crown was Ji’an. The last thickness Conquest is Red gold s

  26. full report
    A Huge Comfortable Sectional Sofa Is an Essential For Any Home

    This modular sofa is a great pick for a space that’s brief on square video. It has a smooth silhouette, is available in a few setups and requires minimal assembly.

    GH Institute senior editor Emma Walsh ad

  27. Its such as you learn my mind! You seem to know a lot approximately this, like you wrote the guide in it
    or something. I think that you could do with some %
    to force the message home a little bit, but
    instead of that, that is wonderful blog. A fantastic read.
    I’ll certainly be back.

    Have a look at my blog; Recommended Reading

  28. mouse click the next webpage
    Buy a German Shepherd Puppy

    A German Shepherd puppy will thrive in an environment that offers plenty of space for training and exercise. You’ll need to find a reputable dog breeder who offers health and temperament tests for each litter they sell.

    Find puppi

  30. 백링크엔드
    You’ve likely invested as well as resources into creating high-quality content of which resonates with your own potential audience. However, with no effective SEO solutions, that content may not be reaching its full possible. By combining content optimization with tactical SEO practices, you are able to amplify your on the web presence, drive additional traffic to your website, in addition to ultimately increase conversions. But how will you obtain

  31. 에볼루션 슬롯게임
    How to Find an Evolution Baccarat Site

    Evolution has been a major player in the live casino market, having won numerous EGR awards for the best games of the year. Their games are of top quality and offer a thrilling gaming experience. They offer a variety of thrilling games, including lightning roulette and the first person dream catcher.

    This game is an original twist on

  32. 해외에이전시
    파워볼 사이트.

    전자파워볼은 5분마다 판매와 추첨이 일어나는 복권입니다. 각 게임은 5분마다 진행되기 때문에 오프라인에서 복권을 판매하지 않습니다. 국내 유일의 합법적인 동복원 홈페이지에서 두 개의 숫자 선택 게임을 선택하고, and you can only buy up to 100000 won a day, 그 의미 따라서 적은 금액을 지불하더라도 몇 가지 게임을 할 수 없습니다. 과도도박 금지법이 있지만 10만원은 도박꾼들에게 적지 않은 금액이라 개인파워볼사이트 주소를 찾아보고 무제한 파워볼게임과 함께 사설 파워볼번호로 다양한 게임을 하는 사람들이 많다.

    파워볼 게임.

    통해 자정 06:00~24:00에 온라인 티켓을 판매하고 5분마다 1~28까

  33. 다파벳주소
    카지노 사이트의 바카라 게임이 이기기가 어렵다는 것은 의심의 여지가 없습니다. 그러나 우리 카지노 에이전트와 함께 Bakara를 플레이하면 이길 기회가 있다고 생각합니다. 카지노랜드 최고의 수호자로서 모든 회원들에게 정직하고 공정할 것을 약속드립니다. 저희 카지노 에이전트는 Telegram, Kakao Talk 또는 Home Chain에서 사용할 수 있으므로 연중무휴 24시간 연락할 수 있습니다. 카지노 사이트를 선택할 때 다른 곳보다 더 안전하고 유리한 환경에서 바카라를 할 수 있는 사이트를 선택해야 한다고 생각합니다. 바로 우리 카지노입니다.

    블랙잭 핸드는 두 장 이상의 카드의 합이 21에 가까울 때입니다. 에이스 페어와 10가치 카드를 합치면 블랙잭이라고 하며 최고 점수입니다.슬롯 머신은 슬롯 비디오 게임을 하는 장치입니다. 슬롯머신에 현금이나

  34. pure caluanie muelear oxidize australia
    Where to Buy Caluanie Muelear Oxidize

    It is crucial to adhere to local regulations when buying muelear oxidize caluanie canada. You should also choose a supplier that is reliable and follows strict safety protocols. You can also buy this chemical on marketplaces on the internet that sell chemicals.

    Legality

    <b

  35. trastuzumab inhibitor
    Here, we evaluated the results two classes of bacterial signaling molecules (acyl homoserine lactones (AHLs) and diffusible signaling factor (DSF)) have actually on B. bacteriovorus 109J behavior and viability. While AHLs had a non-significant effect on predation rates, DSF considerably delayed predation and bdelloplast lysis. Subsequent experiments showe

  36. https://powerofratu.com/
    judi mesin slots online pada dunia judi sekarang tentu sudah tak asing. bahkan juga mayoritas kelompok banyak bettor lebih minat untuk mainkan taruhan yang berikut ketimbang dengan permainan lainnya. sesaat akan main taruhan, banyak bettor harus masuk lebih dahulu dalam suatu situs terunggul yang dapat dipakai selaku tempatnya main. pilih berdasar referensi bisa menjadi salah satunya teknik gampang yang dapat dikerjakan buat dapat

  37. q-vd-oph inhibitor
    Objective To develop, implement and evaluate the expert newsletter idea. Establishing German neighborhood pharmacies. Process Clinical pharmacists from a German college put together and synthesized clinical test information in an expert newsletter that would provide community pharmacists with evidence-based info on typical over-the-counter medications also instructi

  38. best single oven
    Choosing the Right Single Electric Oven With Grill

    A single electric oven plays an essential role in the kitchen, turning the raw ingredients into culinary masterpieces. The right oven can help you save money and energy, and guarantee consistency and precision in cooking.

    It comes with all the standard m

  39. https://x.com/Agniesz18811048
    Sypialnia to miejsce, gdzie spędzamy wiele godzin na odpoczynku i regeneracji sił. Dlatego niezwykle ważne jest, aby meble do sypialni były nie tylko estetyczne, ale także funkcjonalne i komfortowe. Wybór odpowiednich elementów wyposażenia może znacząco wpłynąć na nasz nastrój i samopoczucie. W tym artykule podpowiemy, jak znaleźć idealne meble do sypialni, które połączą w sobie piękno, wygodę i praktyczność.

  40. selleck kinase inhibitor
    Albumin in tears had a significant impact on pupillary diameter for both tropicamide (P ≤ 0.001) and latanoprost (P ≤ 0.047), with no differences noted between 0.4% and 1.5% concentrations. Reduction in the maximal effect (pupil size) and overall drug exposure (area under the effect time-curve of pupil size over time) were significant for tropicamide (6.2-8.5% on average, P ≤ 0.006) but not fo

  41. adhd treatment for adults medication
    ADHD Treatment For Adults – Stimulant Medication

    Stimulant medicines like methylphenidate or dextroamphetamine are generally considered as the first-line treatment for adults with ADHD. These drugs increase and balance neurotransmitters, which are brain chemicals.

    Non

  42. autophagy inhibitor
    We rendered the DTT fiber bundle utilizing a region-of-interest-based fiber tracking strategy on the architectural image created in FIESTA by automatic picture coregistration. Materials regarding the CPs were obviously visualized by DTT. The DTT-FIESTA overlaid image revealed the cross-sectional and three-dimensional structure of the pyramidal area and also the ascend

  45. MAPK inhibitor
    The Covid-19 pandemic has markedly changed our practices. This article analyses the risks of contamination among healthcare professionals (HCPs) during laparoscopic surgery on patients with Covid-19. Harmful effects of aerosols from a pneumoperitoneum with the virus present have not yet been quantified. Measures for the protection of HCPs are an extrapolation of those taken during other epidemic

  46. autonomous vacuum
    What Makes a Good Robot Vacuum?

    A quality robot vacuum will help you save time and effort when it comes to cleaning your home on a regular basis. But what makes a good one?

    The more expensive features, such as mopping and hazard detection in real-time systems can make your robot cleaner work longer. We’ll

  47. ratu311
    mengerjakan permainan slots online indonesia pastinya saat ini dapat akses dengan mobile-phone atau versus pc juga. untuk beberapa umumnya sekarang taruhan betul-betul janjikan banyak penghasilan keuntungan yang begitu besar. di sini taruhan akan nyata-nyata dapat membawa pada pencapaian perbandingan untung yang semakin besar kembali kedepan.

    walau demikian untuk memperoleh beberapa keuntungan dalam penempatan taruhan slots tentu

  48. https://ratuqueen.com/
    Sabung ayam adalah permainan tradisionil cukup ternama di golongan masyarakat. Dahulu, untuk saksikan sabung ayam beberapa orang harus tiba ke perkampungan yang menyiapkan tempat tarung ayam. Sekarang, banyak bettor cukup hanya membuka internet dan pilih bandar judi tempat untuk bermain sabung ayam online. Bila pengin menang, kamu dapat manfaatkan prakiraan sabung ayam ini hari. Untuk mempermudah dalam soal penempatan taruhan memang se

  50. bj88
    BJ88 tự hào cung cấp một bộ sưu tập đồ sộ các trò chơi đa dạng, phù hợp với mọi sở thích của người chơi. Bạn có thể thỏa sức tham gia các trò đánh bài truyền thống như Poker, Baccarat, Blackjack, hay thử thách bản thân với các game slot hiện đại với hình ảnh sắc nét và âm thanh sống động. Ngoài ra, BJ88 còn cung cấp các trò cá cược thể thao, xổ số và mini game, mang đến trải nghiệm giải trí đầy đủ và đa dạng.
    <b

Leave a Reply

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