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.

259,547 thoughts on “Department Store Industry”

  2. M4344
    MicroRNA resources in sheep are limited compared with those in other domesticated mammalian species. By sequencing small RNAs of sheep corpus luteum and endometrium, we have generated the largest amount of miRNA-seq data and compiled the most comprehensive list thus far of miRNAs (n = 599) in sheep. Additionally, we observed a highly conserved maternally imprinted cluster of miRNAs on chromosome 18 homologous to that foun

  3. auto locksmith bedfordshire
    The Best Car Locksmiths in Bedfordshire

    Bedfordshire is home to a lively mix of history, culture, natural beauty, and economic development. This region is understood for its inviting communities and forward-thinking efforts.

    The Chiltern Hills provide an attractive backgroun

  4. Sunwin
    Đặt cược là một môn thể thao được yêu thích và thịnh hành trên toàn thế giới. sự phát triển của công nghệ, cá cược qua mạng đã trở thành một lựa chọn phổ biến của nhiều người, đặc biệt là những ai yêu thích thử thách.

    Cá cược trực tuyến là một thị trường phát triển mạnh mẽ hiện nay. Những người tham gia có thể đặt cược vào các trận bóng đá để thử vận may. Để tham gia, bạn chỉ cần đăng ký tài khoản.

    <

  5. 에볼루션 룰렛
    The Importance of Understanding Evolution

    The majority of evidence for evolution comes from observation of organisms in their environment. Scientists use laboratory experiments to test evolution theories.

    Positive changes, such as those that aid an individual in the fight to survive, increase their freque

  6. https://sunwin.delivery/
    Chơi cá cược là một trò chơi được yêu thích và rộng rãi trên toàn thế giới. Với sự phát triển của công nghệ, cá cược online đã trở thành một thói quen của nhiều người, đặc biệt là những ai yêu thích một chút mạo hiểm.

    Cá cược thể thao là một trong những trò chơi cá cược hấp dẫn hiện nay. Những người tham gia có thể đặt cược vào các sự kiện thể thao lớn để giải trí. Để bắt đầu, bạn chỉ cần tham

  7. understanding the cultural aspects of vapme shisha flavors
    Lately, the vaping industry has been changed distinguishly, introducing devices that blend convenience, flavour, and also a customizable encounter. Enter the 2024 Vapme 15000 Puffs Extra Vape, an impressive addition to typically the ever-expanding world of disposable vapes. Using and various flavors, it sets a new new standard for vapers looking intended for both quality plus longev

  8. hcv signaling
    In patients from parts of asia, the efficacy and security of vedolizumab in remedy for UC had been broadly in line with that in the total research population.In patients from Asian countries, the efficacy and safety of vedolizumab in treatment of UC were broadly consistent with that into the total study populace. V600E or V600K mutations. To verify the securit

  9. Sunwin
    Cá cược là một hoạt động được yêu thích và rộng rãi trên toàn thế giới. Với sự phát triển của công nghệ, cá cược online đã trở thành sở thích của nhiều người, đặc biệt là những ai yêu thích cảm giác hồi hộp.

    Cá cược trực tuyến là một trong những hình thức cá cược phổ biến hiện nay. Những người tham gia có thể đặt cược vào các trận bóng đá để thử vận may. bắt đầu, bạn chỉ cần đăng ký tài khoản.

    <

  10. selleckchem
    This meta-analysis aimed to estimate the prevalence of burnout among medical students in China.A systematic search from the following electronic databases China National Knowledge Infrastructure, Wangfang database, VIP database, Chinese biomedical literature database, PubMed, Embase, Web of Science, and Google Scholar was independently conducted by 2 reviewers from inception to September 2019. The data were analyzed u

  11. Sunwin
    Tham gia cá cược là một môn thể thao được yêu thích và rộng rãi trên toàn thế giới. Với sự phát triển của công nghệ, cá cược online đã trở thành một lựa chọn phổ biến của nhiều người, đặc biệt là những ai yêu thích cảm giác chiến thắng.

    Cá cược esports là một trong những hình thức cá cược phổ biến hiện nay. Những người tham gia có thể đặt cược vào esports để thưởng thức trò chơi. Để có cơ hội chiến thắng, bạn c

  12. grey fabric sofa 3 seater
    Purchasing a 3 Seater Fabric Couch

    Ajai says: “I love this one for a couple reasons, nice shape (stylish but won’t go out of style), excellent depth and the fabric feels really good & & cleanable for my feline Felicity!”

    Store here if you like a soft-modern look + an average cost with future versatility. They provide a wid

  13. https://www.selleckchem.com/products/anacetrapib-mk-0859.html
    In addition, lymph node metastasis status exerted the most significantly predictive of 5 years survival rate. Conclusively, GAS5 polymorphism rs145204276 is probably applicable to predict 5 years survival HR of cervical cancer patients. However, the mechanism elucidating the methylation status and transcription function of rs145204276 in uterine cervical canc

  15. 789win
    Don’t drink and risk. Alcohol impairs your judgment and right away has a propensity to inflate by your self confidence, making you make decisions you never would make if you are sober. Have you ever wondered why land casinos zero cost drinks to players? For this reason.

    The the easy way get interested in the bet on poker is find somebody that learns how to play poker and let them

  16. kann man führerschein kaufen
    How to Get a Driving License in Germany

    Germany is a car-friendly country, with efficient autobahns and plenty of parking space. However, it is essential to be aware of the rules of the road before driving in Germany. You must pass the written test before taking the practical test.

  17. Sunwin
    Tham gia cá cược là một hình thức giải trí được yêu thích và phổ biến trên toàn thế giới. Với sự phát triển của công nghệ, cá cược qua mạng đã trở thành một lựa chọn phổ biến của nhiều người, đặc biệt là những ai yêu thích một chút mạo hiểm.

    Cá cược bóng đá là một trong những hình thức cá cược phổ biến hiện nay. Những người tham gia có thể đặt cược vào esports để kiếm tiền. Để chơi, bạn chỉ cần đăng ký trên nền

  18. small comfy couch
    How to Find the Most Comfortable Cost Effective Couches

    When it pertains to cost effective couches, the most comfortable options are upholstered in durable fabrics that look abundant and hold up well to daily usage. Look for natural or artificial fabrics that can be easily cleaned up and are less most likely to reveal discolorations in time.

    <

  20. Selleck CPI-203
    The current study endeavored to closely compare the detection rate of 68-Gallium labelled prostate-specific membrane antigen ([68Ga]Ga-PSMA) versus [18F]Fluorocholine in men with prostate cancer (PC), to investigate the benefits and pitfalls of each modality in the setting of various patient characteristics. We retrospectively analyzed 29 biopsy-proven PC patients in two categories, staging and restaging, who underw

  21. read more
    With Bd genotypes from samples collected between 1975-2019, we observed a contemporary dominance of the global panzootic lineage in Mexico and report four genetic subpopulations and potential for admixture among these populations. The observed genetic variation did not have a clear geographic signature or provide clear support for the epizootic wave hypothesis. These results provide a framework for testing new questions r

  22. Nevirapine datasheet
    3, and 3.9 cm for 4-, 9-, and 16-Tx cases, respectively.Neonatal brain hypoxia-ischemia (HI) is a leading cause of morbidity and long-term disabilities in children. While we have made significant progress in describing HI mechanisms, the limited therapies currently offered for HI treatment in the clinical setting stress the importance of discovering new targetable pathways. Efferocytosis is an immu

  23. selleck kinase inhibitor
    09-6.16, P = 0.027) in the low- and high-BMD groups, respectively. The lower-Mg and low-BMD group had a 9.21-fold higher risk of fractures (95% CI; 2.35-47.00; P = 0.0010) than the higher-Mg and high-BMD group. Furthermore, adding both magnesium levels and lumbar spine BMD levels to the established risk factors significantly improved the prediction of fractures (C-index 0.784 to 0.830, p = 0.041).

    <b

  24. visit the next internet site
    The Academy’s Evolution Site

    Biological evolution is one of the most central concepts in biology. The Academies have long been involved in helping those interested in science understand the concept of evolution and how it permeates all areas of scientific research.

    <br

  25. https://68gamebaii.asia/

    Keep it up. There’s no point in creating a social media account discover going get a it. Create time once a week (or even bi-monthly) to envision in, update, add new contacts or join a cutting edge group. If you have written a fun article, post it; purchase read a great blog post, share it; and if you meet a new referral source, add to be able to your network. Just do something.

  26. click here
    How to Maintain a Robot Vacuum Cleaner

    Robot vacuum cleaners can be practical efficient, safe and easy to use. They make use of advanced sensors to create a map of your home, and they use a combination of roller brushes, side brushes, and mops to thoroughly clean.

    are connected to smart

  27. best comfy couch
    How to Make Your Sofa Look Elegant

    Sofas are a staple in numerous living rooms, and they can have a big influence on the total appearance of your area. From vibrant patterned designs to cozy velour, there are a lot of methods to make your sofa look stylish.

    Whether you like to host visitors or h

  28. U18666A clinical trial
    AIM We aimed to determine the prevalence of, and factors associated with maternal use of nicotine products in relation to breastfeeding. METHODS Nicotine use three months postpartum was determined in the Scandinavian PreventADALL mother-child birth cohort study recruiting 1837 women from 2014-16. Electronic questionnaires at 18 weeks pregnancy and three months postpartum provided information on snus use, smok

  30. best vapme shisha flavor pairings for beginners
    The world of vaping is ever-evolving, in addition to 2024 brings a fresh wave regarding excitement with typically the new Vapme Disposable Vape Collection. Created for the expert vaper and others just beginning their journey, this collection functions an impressive array of devices offering through 600 to 18000 puffs.

  31. white cot that turns into bed
    Choosing a Convertible Cot

    Convertible cribs provide a long-lasting nursery service, changing into a toddler bed, day bed and complete size bed. Natart’s Metro convertible cot is a fantastic example, providing moms and dads versatility and functionality for their kid’s sleep sanctuary.

  32. best convertible cribs
    The Dawson Scoop Convertible Crib in Black Or White

    When it concerns baby furnishings, convertible cribs are a clever choice. These standard-sized cribs can be converted into toddler beds, daybeds, and in some cases full beds with a footboard.

    This makes them an excellent investment fo

  33. selleck products
    Multiple sulfatase deficiency (MSD) is a lysosomal storage disease caused by a deficiency of formylglycine-generating enzyme due to SUMF1 defects. MSD may be misdiagnosed as metachromatic leukodystrophy (MLD), as neurological and neuroimaging findings are similar, and arylsulfatase A (ARSA) deficiency and enhanced urinary sulfatide excretion may also occur. While ARSA deficiency seems a cause for neurol

  35. is nagano tonic safe
    ✔️Nagano Tonic Official Website: 🔥 nagano-tonic-reviews.shop/ 🔥

    This additional item quickly attracted numerous customers who pursued the most perfect figure utilizing the intensification of men and women’s give attention to healthy life, fat burning has cha

  36. learn more
    As in other cases, drug repurposing is applied to monoclonal antibodies, saving time and money. These innovative therapies are more effective and can treat previously untreatable diseases. As better understanding of the pathogenic mechanisms of neurological diseases is gained, additional mAbs are expected to be developed at a lower cost and with better safety profile compared with current treatment options.Adult-onset Still’s disease (AOSD)

  37. https://thor311.id/
    bila sejauh ini terdapat beberapa yang menganjurkan namun juga mereferensikan biar anda masuk serta main dalam perjudian slots online yang pasti lantaran ada argumen memberikan keuntungan yang dapat didapat. juga beraneka argumen itu betul-betul bukti dan rasional dengan adanya beberapa orang yang telah rasakan serta memberikan bukti sendiri. bicara perihal kenyataan permainan slots online tersebut kita mesti dapat mengerti kalau memang ada

  38. 에볼루션 바카라 체험
    How to Play at an Evolution Casino Site

    Evolution casino website is one of the best sites to play live dealer games. They provide high-quality live streaming from a variety of locations across the globe. In addition, their full selection of games are fair and regulated.

    Apart from class

  39. https://bornyouth.com/
    ketika bermain judi slots online, karena itu tiap betaruh harus tahu beberapa jenis dari mesin yang dipakai di dalam permainan itu. juga supaya lebih ringan menjadi pemenangnya, karena itu tiap-tiap pemain harus tahu keunggulan dan kekurangan dari mesin slots alternatifnya. dengan demikian peluang buat dapat menang serta bisa untung akan makin besar.

    mesti memahami batasan dari taruhannya

    untuk gam

  40. click here
    The language and speech of individuals with psychosis reflect their impairments in cognition and motor processes. These language disturbances can be used to identify individuals with and at high risk for psychosis, as well as help track and predict symptom progression, allowing for early intervention and improved outcomes. However, current methods of language assessment-manual annotations and/or clinical rating scal

  42. comfy couches for sale
    How to Discover a Comfortable Couch

    Users rave about the comfort of this couch, which offers an impressive 80 fabrics (including 47 pet-friendly options). They likewise like how quickly spots wipe away.

    The comfiest couches are made with top quality materials that will stand up to daily use and wear. Search for durable frames, kiln-dri

  43. comfortable couches for sale
    How to Find one of the most Comfortable Sectional Sofa worldwide

    As you purchase a sectional sofa, measurements are essential. The size of the area, seat height (to keep crumb-loving kids and shedding family pets at bay) and chaise depth need to all aspect into your decision.

    With an adjusta

  44. visit this site
    Evolution Baccarat

    Evolution Baccarat comes with a vast variety of game options and games modes. It is available in a variety of languages and has a wide selection of scoreboard styles. It also has a variety of camera angles for players to select from. High rollers can also choose Salon Prive for a VIP experience.

  45. Peptide 17 cost
    To construct a high-performance next-generation carbon-based flexible supercapacitor, high porosity, large mass density, and high flexibility are three significant challenging goals. However, one side always affects another. Herein, high-density tetratomic-doped porous composite carbon derived from sustainable biomaterials is achieved via two-step processes of carbonization and acid-washing t

  46. Linsitinib
    The results display the promising potential for the use of BCAAs as relevant and accessible biomarkers, and provide perspectives on interventions directed towards the reduction in plasma BCAA levels in the prevention and management of hypertension.This paper proposes a protocol for the acquisition and processing of biophysical signals in virtual reality applications, particularly in phobia therapy experiments. This proto

  47. box trucks for sale
    Introduction

    Crane trucks are essential equipment in various industries, including construction, transportation, and logistics. These versatile vehicles are equipped with hydraulic systems that enable them to lift and move heavy loads with precision and efficiency. The hydraulic oil used in crane trucks plays a critical role in ensuring smooth operation and optimal performance. In this comprehensive g

  48. yo-01027 inhibitor
    Congenital kyphoscoliosis is an ailment very often needs surgical procedure. Wedge osteotomies, such pedicle subtraction osteotomy, tend to be insufficient to fix this complicated rigid deformity. Vertebral line resection yields enough correction, however it is an exhaustively long operation with a higher chance of significant complications. You

  49. Sunwin
    Tham gia cá cược là một môn thể thao được yêu thích và rộng rãi trên toàn thế giới. Với sự phát triển của công nghệ, cá cược qua mạng đã trở thành một thói quen của nhiều người, đặc biệt là những ai yêu thích thử thách.

    Cá cược bóng đá là một trong những hình thức cá cược phổ biến hiện nay. Những người tham gia có thể đặt cược vào các trận bóng đá để thử vận may. Để tham gia, bạn chỉ cần đăng ký tài khoản.

  50. see more
    The proportion of PLHIV in early stages of disease was significantly higher during “Treat all” (73.2% vs. 55.6%, p less then 0.001). The median time to ART initiation was significantly lower during “Treat All” (31 vs. 88 days, p less then 0.001). Cumulative retention at three, six and 12 months was consistently lower during “Treat all” and was significant at six months (74.9% vs.78.1% p=0.022). Conclusion Altho

Leave a Reply

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