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.

34,708 thoughts on “Department Store Industry”

  1. “1688goatbet เว็บตรงสล็อต1688 goatbet คาสิโนออนไลน์ ของคนรุ่นใหม่
    1688GOATBET แทงบอล goatbet เว็บแทงบอลออนไลน์ คาสิโนออนไลน์ ทดลองปั่นสล็อต สล็อตเว็บตรงทรูวอเลท goatbet pgplay1688 ที่คุณรุ่นใหม่เลือก ด้วยระบบ สล็อต1688 เว็บแทงบอลออนไลน์ ที่ดีที่สุด ฝาก-ถอน อัตโนมัติ รวดเร็วทันใจ ปลอดภัย 100%

  2. We provide support for Nighthawk extender setup or any other issue related to your extender in the USA, UK, Australia, and Canada. For more information, visit:
    Mywifiext

  3. AE888 là hệ thống trang chủ chính thức của nhà cái AE888 – sân chơi cá cược trực tuyến đang rất hot tại thị trường Việt Nam. Nhà cái thu hút đông đảo người chơi tham gia bởi hoạt động uy tín, chuyên nghiệp và có hệ thống game đa dạng.
    #ae888 #nhacaiae8888 #trangchuae888 #linkae888 #ae888acom

  5. 💌 #เว็บดี เว็บตรง เว็บอันดับ1️⃣
    📌สมัครฟรี➤ https://heylink.me/Miami900/
    ✅ นักลงทุนไม่ควรพลาด เว็บที่มั่นคง💸
    ✅ระบบใหม่ล่าสุด ฝาก – ถอน ภายใน 5 วินาที
    ✅ รองรับทุกธนาคารและ ทรูวอเลท
    ✅ยูสใหม่ แนะนำฝากเลย แตกกันรัวๆ การันตีแตกยับแน่นอน
    🎰สล็อต🎲คาสิโน🃏บาคาร่า⚽️กีฬา
    ✨ ฝาก-ถอน ไม่มีขั้นต่ำ 1 บาทก็ฝากเล่นได้✨
    🤩 แอดมินดูแลตลอด 24. ชม.🤩

  6. BONG88 – Đối tác cá cược hàng đầu tại Châu Á năm 2024, một nơi uy tín và đáng tin cậy cho những người yêu thích cá độ và trò chơi casino trực tuyến. Với sứ mệnh cung cấp trải nghiệm giải trí tốt nhất, BONG88 không chỉ là một nhà cái thể thao hàng đầu mà còn là điểm đến lý tưởng cho những ai muốn tham gia vào các trận đấu thể thao hấp dẫn và trải nghiệm các trò chơi casino đa dạng.

  7. HI88 GS – Trang web chính thức cung cấp link vào nhà cái HI88 chất lượng Link truy cập mới nhất không chặn update 3/2024 nhận 58k Freebet
    #hi88 #nhacaihi88 #hi88gs #hi88casino

  9. Hi88 mov là website chính thức ủy quyền trực tiếp của Hi88 tại Việt nam. Link từ Hi88.mov không bị chặn và an toàn nhất 2024. Hi88 đa dạng trò chơi cá cược.
    #Hi88 #nhacaihi88 #hi88casino #hi88mov

  10. BJ88 là nhà cái cá cược casino, đá gà trực tuyến uy tín nhất hiện nay, với chính sách bảo mật cực cao và tỷ lệ đổi thưởng lớn.
    #bj88 #trangchubj88 #nhacaibj88 #bj88topcom

  11. this is How do you perceive the future of the Department Store Industry amidst the rise of e-commerce and changing consumer preferences, and what strategies do you believe are crucial for these stores to stay competitive in the evolving retail landscape?

    Andry from Fun Almanac

  12. How do you see the Department Store Industry evolving in the next decade, considering the rise of e-commerce, changing consumer preferences, and the industry’s efforts towards sustainability and technological integration?

    Regards from Gaming In Color

  13. Immerse yourself in the exhilarating world of gaming with our one-stop web destination. Explore a vast collection of console and PC games, stay updated with the latest gaming news, and connect with a passionate community. Level up your gaming experience with us!

  16. Wonderful article, thanks for putting this together! This is obviously one great post. Thanks for the valuable information and insights you have so provided here. memori88 slot

  17. BOSSBET99 เปิดประสบการณ์ไปกับ สล็อต เว็บตรงไม่ผ่านเอเย่นต์ไม่มีขั้นต่ำ เว็บที่มอบความสนุกทุกครั้งเมื่อเข้ามาเล่นแล้วได้เงินจริง มีเกมสล็อตใหม่ล่าสุด และดีที่สุดในช่วงเวลานี้ มาพร้อมระบบฝาก-ถอน ออโต้ ไม่มีขั้นต่ำ และรองรับการใช้งาน ผ่าน wallet BOSSBET99 สมัครสมาชิกได้ด้วยตัวเองง่าย ๆ ไม่ยุ่งยาก กรอกข้อมูลรายละเอียด ตามแพลตฟอร์มที่ระบุไว้พร้อมรับโบนัส และโปรโมชั่นสุดเด็ด ตอบแทนแก่สมาชิกใหม่และสมาชิกเก่าทุกท่าน เพียงแค่คลิกปุ่มสมัครสมาชิกฟรี ไม่ต้องฝากไม่ต้องแชร์ ทดลองเล่นสล็อตได้ฟรี แบบไม่เสียเงินใด ๆ รีบเข้ามาเล่นกันได้เลย ไม่ทำให้คุณผิดหวังเลยจริง ๆ หากคุณชื่นชอบในการเล่นเกมสล็อต เราขอแนะนำ สล็อต BOSSBET99 ถือว่าเป็นอีกหนึ่งความท้าทาย เล่นเกมบนมือถือ ส่งตรงจากทุกประเทศทั่วโลก รองรับการเข้าถึงได้ทุกอุปกรณ์โดยตรง ทางเข้า BOSSBET99 มีเกมสล็อตมาใหม่ล่าสุด อัปเดตให้คุณอยู่ทุกวัน ไม่ตกเทรนด์ เหมาะสำหรับนักเดิมพันทุกท่าน เพียงแค่มีอินเทอร์เน็ต พบกับความเหนือชั้นในการลงเดิมพัน เล่นสนุกกันได้ตลอดทั้งวัน เล่นเพลิน เว็บไซต์ที่มาแรงมากที่สุด เล่นเกมผ่านเว็บตรงได้เลย
    ติดต่อแอดมิน LINE : @bossbet99 (มี @ ด้วยน้า)

  19. Lucky88 không chỉ là một trang web cá cược phổ biến tại khu vực châu Á mà còn là một điểm đến thú vị dành cho những người đam mê trò chơi và muốn trải nghiệm sự đa dạng cùng sự hấp dẫn. #lucky88

  21. Howdy! This is kind of off topic but I need some help from an established blog.
    Is it tough to set up your own blog? I’m not very techincal but I can figure things out pretty quick. I’m thinking about making my own but I’m not sure where to start. Do you have any tips or suggestions? Cheers

    Eurokody.net

  24. 789BET là một nhà cái có giấy phép cá cược trực tuyến hợp pháp do Isle of Man và Khu kinh tế Cagayan and Freeport cấp. Thuộc tập đoàn OKVIP phục vụ hơn 10 triệu người chơi.

  28. I have read a few excellent stuff here. Definitely price bookmarking for revisiting. I wonder how much attempt you set to create the sort of fantastic informative site. Radar138

  30. Title: Unveiling the Fort Knox of Data: Snowflake Security Demystified

    In today’s data-driven world, safeguarding sensitive information against cyber threats is paramount. Snowflake, the leading cloud data platform, stands out not only for its revolutionary architecture but also for its robust security features. In this comprehensive guide, we’ll explore the intricacies of Snowflake security, offering invaluable insights and best practices to fortify your data fortress against potential breaches.

    Understanding Snowflake Security
    Snowflake Security encompasses a multi-layered approach designed to protect data at every stage of its lifecycle within the Snowflake platform. From encryption and access controls to authentication mechanisms and monitoring tools, Snowflake offers a comprehensive suite of security features to safeguard your most critical assets.
    SAP Snowflake Training in Hyderabad

  31. This is extremely fascinating substance! I have completely delighted in perusing your focuses and have reached the conclusion that you are right about a hefty portion of them. You are extraordinary.  link alternatif sihoki

  32. No.1 먹튀검증 사이트, 먹튀사이트, 검증사이트, 토토사이트, 안전사이트, 메이저사이트, 안전놀이터 정보를 제공하고 있습니다. 먹튀해방으로 여러분들의 자산을 지켜 드리겠습니다. 먹튀검증 전문 커뮤니티 먹튀클린만 믿으세요!! 먹튀검증

  33. Don’t underestimate the power of consumer feedback when it comes to products like Foliprime Reviews. Reading reviews can provide valuable insights and help you make an educated decision about whether it aligns with your health goals.

  34. Thinking about incorporating the foliprime hair growth oil foliprime into your hair care regimen? These comments offer valuable feedback from users who have experienced its effects firsthand, giving you insights to consider before making your purchase.

  37. Cancer De La Vessie est une maladie caractérisée par le développement de cellules malignes dans la muqueuse de la vessie. Cette condition peut entraîner divers symptômes, tels que la présence de sang dans l’urine, une miction douloureuse et fréquente, et des douleurs dans le bas du dos. La détection précoce de cette maladie est cruciale pour améliorer les chances de succès du traitement.

  38. Lucky88 là trang nhà cái cá cược hàng đầu châu Á, nổi lên với những chương trình khuyến mãi ưu đãi vô cùng hấp dẫn, giao diện trò chơi thiết kế đẹp mắt. Sảnh game tại nhà cái lucky88.click cung cấp tất cả những trò chơi hot nhất hiện nay như:thể thao, bắn cá, slot game, esports…

  39. No.1 먹튀검증 사이트, 먹튀사이트, 검증사이트, 토토사이트, 안전사이트, 메이저사이트, 안전놀이터 정보를 제공하고 있습니다. 먹튀해방으로 여러분들의 자산을 지켜 드리겠습니다. 먹튀검증 전문 커뮤니티 먹튀클린만 믿으세요!! 카지노사이트

  40. 009 CASINO là thương hiệu cá cược trực tuyến uy tín và được tin tưởng lựa chọn bởi giới chuyên gia. Đồng thời ngay cả cộng đồng bet thủ cũng đều ấn tượng với sự chuyên nghiệp của nhà cái.

  41. J88 là địa chỉ cá cược trực tuyến uy tín bậc nhất Châu Á hiện nay. Là 1 cổng game giải trí đa dạng. Nơi đây có đủ toàn bộ mọi thể loại game mà bất cứ game thủ nào muốn chơi. #j88

  43. Whoa, this piece has such amazing ingenuity! I was genuinely captivated by the way you presented your ideas and found myself wanting to read more.

    Cricket Betting

  45. Instructions on how to access your account will also be provided. You have to validate your account before you can use the features. Launch your preferred web browser on your PC.

    Online Betting ID

  47. Title: Maximizing Security in Your MuleSoft Integration: A Comprehensive Guide

    In today’s interconnected digital ecosystem, where data flows seamlessly between applications and systems, ensuring the security of your integration platform is paramount. MuleSoft, a leading integration platform, offers robust security features to safeguard your data and transactions. In this comprehensive guide, we’ll explore the intricacies of MuleSoft security, providing invaluable insights and best practices to fortify your integration architecture against potential threats.

    Understanding MuleSoft Security
    MuleSoft Security encompasses a wide array of features and capabilities designed to protect data, applications, and APIs across the integration landscape. From encryption and access controls to threat detection and monitoring, MuleSoft provides a comprehensive suite of security tools to mitigate risks and ensure compliance with regulatory requirements.

    Key Components of MuleSoft Security
    Identity and Access Management (IAM): MuleSoft’s IAM capabilities allow organizations to manage user identities, control access to resources, and enforce authentication mechanisms. By implementing IAM policies, organizations can ensure that only authorized users and applications can access MuleSoft resources.

    Encryption: MuleSoft supports encryption of data both at rest and in transit, using industry-standard encryption algorithms to protect sensitive information from unauthorized access. Encryption ensures that data remains confidential and secure throughout the integration process.

    API Security: MuleSoft provides robust API security features, including authentication, authorization, and rate limiting, to protect APIs from malicious attacks and unauthorized access. Organizations can implement OAuth, JWT, or other authentication mechanisms to authenticate API requests and enforce access controls.

    Threat Detection and Monitoring: MuleSoft offers real-time threat detection and monitoring capabilities to identify and respond to security incidents promptly. By monitoring system logs, network traffic, and API usage patterns, organizations can detect anomalous behavior and take corrective action to mitigate risks.
    SAP Mulesoft course in Hyderabad

  48. w88pro.online là trang web giải trí siêu uy tín được thành lập vào năm 2008 tại Philippines. Đây chính là một trong những thương hiệu gạo cội dẫn đầu châu Á trong lĩnh vực cung cấp game và dịch vụ đặt cược trực tuyến.

  50. Multiwood doesn’t just sell furniture; they offer transformative solutions for office spaces. The quality of their wood furniture is outstanding, and the team’s dedication to customer satisfaction is evident at every step

Leave a Reply

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