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.

315,785 thoughts on “Department Store Industry”

  2. Custom coffee mugs online are personalized mugs that can be designed and purchased through various online platforms. Customers can choose the design, color, and text to be printed on the mug, making it a unique and one-of-a-kind item. These custom mugs are great for personal use, gifts, corporate events, and promotional purposes. They offer a fun and creative way to enjoy your favorite beverage while also adding a personal touch to your drinkware collection.

    Custom coffee mugs online
    https://custom-coffee-mugs.com/

  3. Choose Lastingsafe for advanced Modular Bank Vaults. Engineered with durability and security in mind, our vaults offer customizable solutions to meet your specific security needs. vault panels

  5. I truly got a dispose of from your post on the meaning of looking at. I’ve everlastingly been a head peruser, and I know that it’s helped me with learning and fill in such colossal ways. I especially respected your point about how taking a gander at can help us with figuring out substitute perspectives and social orders. I will have a go at taking a gander at extensively more reliably later on.

    16 tyre truck price

  6. Wow! This could be one particular of the most useful blogs We have ever arrive across on this subject. Basically Great. I’m also an expert in this topic so I can understand your effort 카지노사이트

  11. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. king bed

  13. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. Light Therapy Masks

  15. Title: Mastering SAP SuccessFactors Security: Best Practices and Strategies

    Introduction:
    In the dynamic landscape of Human Capital Management (HCM), SAP SuccessFactors stands out as a leading solution empowering organizations with streamlined processes and enhanced workforce management. However, amidst its myriad benefits, ensuring robust security measures remains paramount. In this comprehensive guide, we delve into the intricate realm of SAP SuccessFactors Security, elucidating best practices and strategies to fortify your organization’s digital fortress.

    Understanding SAP SuccessFactors Security:
    At its core, SAP SuccessFactors Security encompasses a multifaceted framework aimed at safeguarding sensitive data, maintaining compliance, and mitigating potential risks. From user access controls to data encryption, every facet plays a pivotal role in upholding the integrity of your HR ecosystem.

    Key Components of SAP SuccessFactors Security:

    Role-Based Permissions: Implementing granular role-based access controls (RBAC) ensures that users are granted appropriate permissions based on their roles within the organization. By delineating access levels, organizations can restrict unauthorized users from accessing confidential information, thus minimizing the risk of data breaches.

    Data Encryption: Leveraging robust encryption mechanisms is imperative to protect data both in transit and at rest. SAP SuccessFactors offers encryption capabilities to encode sensitive information, thwarting malicious attempts to intercept or manipulate data.

    Audit Trails and Monitoring: Establishing comprehensive audit trails enables organizations to track user activities and system modifications effectively. By monitoring logs and conducting regular audits, administrators can promptly identify anomalies or suspicious activities, thereby preempting potential security breaches.

    Single Sign-On (SSO): Streamlining authentication processes through Single Sign-On integration not only enhances user experience but also bolsters security measures. By centralizing user authentication, SSO minimizes the proliferation of credentials and fortifies access control mechanisms.

    Best Practices for SAP SuccessFactors Security:

    Regular Security Assessments: Conducting periodic security assessments and vulnerability scans is indispensable to identify and rectify potential security loopholes. By proactively assessing system vulnerabilities, organizations can fortify their defense mechanisms and preemptively address emerging threats.

    User Training and Awareness: Investing in comprehensive user training programs fosters a culture of security consciousness within the organization. Educating employees about security best practices, such as password hygiene and phishing awareness, significantly mitigates the risk of insider threats and social engineering attacks.

    Continuous Compliance Monitoring: Adhering to industry regulations and compliance standards is non-negotiable in today’s regulatory landscape. Regularly monitoring compliance requirements and aligning security protocols with industry standards such as GDPR and SOC 2 ensures that the organization remains resilient against legal repercussions and regulatory fines.

    Robust Incident Response Plan: Despite meticulous preventive measures, security incidents may still occur. Hence, having a well-defined incident response plan in place is imperative to facilitate swift and effective responses to security breaches. From containment and eradication to recovery and post-incident analysis, a structured approach minimizes the impact of security incidents on business operations.
    SAP Success Factors Training in Hyderabad

  16. يعد العد التنازلي في جدة ضروريا على أجواء مريحة، خاصة خلال أشهر الصيف الحارة. مع وجود درجات حرارة عالية في كثير من الأحيان إلى مستويات متطرفة، يمكن أن يساعد انخفاض درجة الحرارة المعزول بشكل جيد على تبريد الصفرا. وقد أصبح هذا المنتج مثل إزالة ألواح البوليسترين أو إزالة الطباعة العاكسة الشائعة في جدة لتحقيق الحماية الفعالة. لا تساعد على العزل المناسب في وجود تبريد جزء من العام من بعضها، بل تساهم أيضًا في جزء مهم في خفض استهلاك الطاقة وخفض فواتير الكهرباء. من المهم نوع اختيار العزل للحكام على الظروف المناخية في جدة والالتزام بالراحة التامة. الاستثمار في عزلة عالية الجودة يمكن أن يؤدي أداءً كبيرًا بشكل عام إلى العيش بشكل عام لمنزلك ويخلق بيئة معيشية أكثر استدامة في هذه المدينة النابضة المذهلة.https://isolationjedah.com/

  17. Find your new favorite slot site with Jackpot Slot Community’s expert recommendations. Our top 20 list features only the most trusted and reputable platforms, ensuring a safe, fair, and thrilling gaming experience for all players. 슬롯나라

  18. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. C廠什麼意思

  20. يعد العزل في جدة عنصرًا خيمًا على الأجواء المناخية المعتدلة في طقس المناخ الحار والجاف في المملكة العربية السعودية. مع ارتفاع درجة الحرارة خلال أشهر الصيف، يساعد على عزل الثلاجة عن طريق خفض درجة الحرارة إلى المبنى، مما يبقيه أكثر برودة ويعتمد على تكييف الهواء. ومن خلال تركيب مواد عزل عالية الجودة مثل الصابون أو رغوة الرش، لا يمكن لأفراد المنازل أن يتمكنوا من استخدام ألواح الطاقة الفعالة في وظائفهم، بل يمكنهم أيضًا إزالة الإسفنج الخاص بهم. بالإضافة إلى ذلك، يمكن أن يساعد في إزالة العفن في القضاء على العفن والأضرار الناجمة عن الأضرار الناتجة عن الفطريات، مما ينتج جودة الهواء بشكل عام. يعد الاستثمار في مجال الاستثمار في جدة خيارًا ذكيًا ويوفر فوائد طويلة المدى
    كبير.https://isolationjedah.com/

  21. يمكن أن يكون شراء مكيف هواء مستعمل في جدة وسيلة فعالة من حيث التكلفة واجتماعيًا خلال أشهر الصيف الحارة. قبل إجراء عملية الشراء، من المهم إجراء فحص شامل للوحدة للتأكد من أنها في حالة جيدة. التأكد من عدم وجود أي علامات تلفون أو تآكل، مثل الصدأ أو التسريب أو القطع الأصلية. ولم يغب أيضا عن عمر الوحدة خرائط سيانتها. بالإضافة إلى ذلك، ضع في رصيدك درجة مكيفة الهواء وقدرته على التبريد للتأكد من أنه مناسب تمامًا للمساحة التي تنويه تبريدها. من خلال تخصيص البحث وفحص مكيفات الهواء المستعملة قبل الشراء، يمكنك العثور على حل تبريد موثوق ومعقول لمنزلك أو مكتبك في جدة.https://www.mkifatjedh.com/

  22. يمكن أن يكون شراء مكيفات الهواء المستعملة في جدة خيارًا فعالاً من حيث التكلفة ومستدامًا معروفًا من خلاله في معرض المناخ في المملكة العربية السعودية. عند شراء مكيف الهواء المستعمل، يتم فحص الوحدة بدقة للتأكد من أنها تعمل بشكل جيد. التحقق من عدم وجود أي ضرر واضح، مثل الخدوش أو الخدوش، واسأل البائع عن تاريخ صيانة الوحدة. ومن المهم أيضًا أن يتم طرح عمر تكييف الهواء وتقسيم الطاقة الخاصة به. بالإضافة إلى ذلك، ضع في رصيدك درجة مكيفة الهواء وقدرته على التبريد للتأكد من أنه مناسب للمساحة التي تنويه تبريدها. من خلال شراء مكيف الهواء المستعمل في جدة، يمكنك البقاء باردًا خلال فصل الصيف الحار مع تعزيز وتحسين المال.https://www.mkifatjedh.com/

  23. Vn138 là 1 nhà cái từ Qatar và đã nhận được giấy phép hoạt động hợp pháp. Đây được công nhận là 1 sân chơi cá cược trực tuyến đáng tin cậy, chất lượng và uy tín nhất. Vn138 sẽ trở thành lựa chọn hàng đầu.

  24. Remove blur from photo AI is a software application that utilizes artificial intelligence algorithms to sharpen and enhance blurry images. This technology automatically analyzes the image and applies various techniques to improve the focus and clarity, resulting in a cleaner and more detailed final image.

    Remove blur from photo ai
    https://unblur-images.ai/

  25. تعد صيانة الفرن الخاص بك في المدينة المنورة الهامة والأهمية وطول عمره وكفاءته. ابدأ الجزء الداخلي من الفرن بإزالة أي انسكابات طعام أو أي شحوم. يمكنك استخدام تنظيف طبيعي مكون من الصودا والخل والخيارات المحتملة. بالإضافة إلى ذلك، تأكد من إغلاق باب الفرن بحثًا عن أي علامات تآكل، لأن الختم يمكن أن يؤدي إلى حرارة منخفضة وعدم فعالية الاحتراق. من المهم أيضًا فحص سخان احتراق الفرن لأي علامات تلفون واستبدالها إذا لزم الأمر. وأخيرًا، يجب بجدية فحوصات الاحتياط القتالية ويجب عليها التأكد من أن الفرن الخاص بك يعمل على النحو التالي. باتباع النصائح المفيدة هذه، يمكنك التمتع بالفرن الخاص بك في حالة أفضل ويتمتع بوجبات غنية وغنى.https://www.afrangaz.com/

  27. عندما يتعلق الأمر بإصلاح الطباخ في الكويت، فمن الضروري العثور على فني موثوق ويمتلك خبرة في إصلاح الطباخ الخاص بك بشكل صحيح وآمن. ابحث عن خدمة تغيير الملابس بسمعة طيبة في العمل ورضا العملاء. تأكد من الطلبات بشأن المواصفات الفنية وخبرته في إصلاح البوتاجازات دون تحديد. بالإضافة إلى ذلك، تأكد مما إذا كانت خدمة الإصلاح تقدم ضمانًا لتوفر لك راحة البال. يمكن أن تساعدك أي شيء يتعلق بالطباخ على الفور في تجنب المزيد من الضرر وربما توفير أموالك على المدى الطويل.https://repairtbakat.com/

  35. Hi88, một địa chỉ cá cược trực tuyến uy tín và nổi bật, đã được cấp phép hoạt động hợp pháp, tuân thủ theo các quy định khắt khe của Isle of Man và Khu kinh tế Cagayan and Freeport. Điều này không chỉ khẳng định sự minh bạch và công bằng trong mọi giao dịch mà còn đảm bảo một môi trường cá cược an toàn cho người chơi.

  36. I really loved reading your blog. It was very well authored and easy to understand. Unlike other blogs I have read which are really not that good.Thanks alot! zunostore.su

  38. HB88 là nhà cái cung cấp các trò chơi cá cược trực tuyến hợp pháp tại Việt Nam. Với các tựa game hot và đa dạng cùng với tỷ lệ hoàn trả cực cao, nạp rút siêu nhanh. Nhà cái HB88 xứng đáng là nhà cái uy tín nên trải nghiệm một lần trong năm 2024. #hb88

  42. Trong thế giới cá cược trực tuyến, việc tìm kiếm một nhà cái không chỉ uy tín mà còn cung cấp một trải nghiệm chất lượng cao là điều không hề dễ dàng. VN138, với bản sắc rõ ràng từ Qatar và được trang bị giấy phép kinh doanh hợp pháp, đã nhanh chóng trở thành một trong những lựa chọn hàng đầu cho cộng đồng cá cược quốc tế.

  44. I needs to spend some time learning more or working out more.
    Bowling, miniature golf, laser tag and arcade games had girls kicking off their heels and boys loosening their ties.
    추천드리는 에볼루션바카라 를 확인해보세요.

  45. Thank you for another great article. Where else could anyone get that kind of information in such a perfect way of writing? I have a presentation next week, and I am on the look for such information. zunostore.su

  48. This is a fabulous post I seen by virtue of offer it. It is genuinely what I expected to see look for in future you will continue subsequent to sharing such an extraordinary post 카지노사이트

  49. Miyakojima underwater photography refers to capturing stunning images of the underwater world around Miyakojima, an island in Japan known for its crystal-clear waters and vibrant marine life. Photographers can capture a variety of subjects such as colorful coral reefs, exotic fish species, and even sea turtles and manta rays. The rich biodiversity and clear visibility in the waters around Miyakojima make it a popular destination for underwater photography enthusiasts.

    宮古島　フリーダイビング
    https://wildblue-miyakoislnd.myshopify.com/pages/miyakojima-freediving

Leave a Reply

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