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.

304,902 thoughts on “Department Store Industry”

  1. في الكويت، يلعب نجارو الأبواب دورًا حاسمًا في صناعة البناء والتصميم الداخلي. يشتهر هؤلاء الحرفيون المهرة بالدقة والاهتمام بالتفاصيل والمهارة الفنية في إنشاء أبواب مصنوعة خصيصًا تعزز المظهر الجمالي للمنازل والمباني. غالبًا ما يستخدم نجارو الأبواب الكويتيون مواد عالية الجودة مثل الخشب الصلب والزجاج والمعادن لصناعة أبواب ليست متينة وعملية فحسب، بل رائعة أيضًا في التصميم. إن براعتهم هي مزيج من التقنيات التقليدية والابتكارات الحديثة، مما يؤدي إلى أبواب ليست جميلة فحسب، بل أيضًا مصممة لتدوم طويلاً. سواء كان بابًا على الطراز العربي التقليدي بنقوش معقدة أو تصميمًا معاصرًا بسيطًا، فإن نجاري الأبواب الكويتيين بارعون في جلب رؤى عملائهم إلى الحياة بمهارة وخبرة.
    https://njar4.com/

  3. مظلات الرياض ليست مجرد إضافات عملية للمباني، ولكنها أيضًا تحسينات جمالية تضفي طابعًا وسحرًا. توفر هذه المظلات الظل والحماية من أشعة الشمس القاسية، مما يجعل المساحات الخارجية أكثر راحة وجاذبية. إن التصميمات والمواد الفريدة المستخدمة في مظلات الرياض يمكن أن تكمل الهندسة المعمارية وأسلوب أي مبنى، سواء كان حديثاً أو تقليدياً. إنها تأتي بأشكال وأحجام وألوان مختلفة، مما يسمح بالتخصيص ليناسب التفضيلات والمتطلبات الفردية. بفضل متانتها ومقاومتها للعوامل الجوية، فإن مظلات الرياض ليست فقط عملية ولكنها أيضًا استثمارات طويلة الأمد يمكن أن تعزز الجاذبية العامة والقيمة لأي عقار. سواء للاستخدام السكني أو التجاري، فإن هذه المظلات عبارة عن حلول متعددة الاستخدامات تمزج بين الشكل والأداء بسلاسة.
    https://mzllat.com/

  4. تعتبر مظلات الرياض خيارًا شائعًا لكل من العقارات السكنية والتجارية في المدينة. توفر هذه المظلات حلاً أنيقًا وعمليًا لخلق الظل والحماية من أشعة الشمس القاسية والظروف الجوية غير المتوقعة في الرياض. غالبًا ما يكون تصميم المظلات في الرياض أنيقًا وحديثًا، ويمتزج بسلاسة مع الطراز المعماري للمباني. أنها تأتي في مجموعة متنوعة من المواد والألوان والأنماط لتناسب التفضيلات والجماليات المختلفة. سواء تم استخدامها في مناطق الجلوس الخارجية أو واجهات المتاجر أو النوافذ، فإن مظلات الرياض لا تعزز المظهر البصري للمساحة فحسب، بل تزيد أيضًا من كفاءة الطاقة عن طريق تقليل اكتساب الحرارة في الداخل. بفضل متانتها ووظيفتها، توفر هذه المظلات طريقة عملية وأنيقة لتعزيز المناطق الخارجية للعقارات في الرياض.https://mzllat.com/

  6. يمكن العثور على فني إصلاح غسالات موثوق به في الكويت منقذًا للحياة عندما يتعطل جهاز الغسيل الخاص بك. تمت السيطرة على أيديهم من الفيتناميين الكوبرا، وتمكنوا من السيطرة على مجموعة واسعة من الفاسدين الغسالات، ونجحوا في ذلك من العمال الصغار وحتى الأعجوبة الكبيرة. لديها الخبرة اللازمة لتشخيص المشكلة الصغيرة ويمكن تشغيلها مرة أخرى. سواء كان الأمر يتعلق بغسالة مزعجة، أو أسطوانة متسربة، أو لوحة تحكم مع طلة، يمكن أن يحسمني فنان متخصص لسبب تفسيري للمشكلة بسرعة والوصية بالإصلاحات اللازمة. من خلال استخدام بفني إصلاح الغسالات في الكويت، يمكنك توفير الوقت والمال ومتاعب التعامل مع الجهاز المعطل بنفسك.
    https://www.ghsalat.com/

  7. MB66 là nhà cái chuyên cung cấp dịch vụ cá cược trực tuyến uy tín tại thị trường Việt Nam. Mang đến cho người chơi những sản phẩm giải trí chất lượng, dịch vụ chăm sóc khách hàng tận tình.#mb66

  9. Family court lawyers in Orange County provide essential legal representation for individuals navigating family law matters. From divorce and child custody disputes to adoption and domestic violence cases, these attorneys offer compassionate support and strategic advocacy. They guide clients through complex legal procedures, ensuring their rights and interests are protected. With their expertise in California family law and dedication to achieving favorable outcomes, Orange County family court lawyers help families resolve conflicts and move forward with confidence and stability.family court lawyer orange county

  10. Nhà cái Lucky88 cá cược trực tuyến đáng tin cậy và uy tín trong ngành. Với hơn một thập kỷ hoạt động, chúng tôi đã xây dựng được uy tín mạnh mẽ và được đánh giá cao từ phía khách hàng. #lucky88

  12. Aladin138 adalah tempat slot aladin terbaik dengan berbagai jenis macam server terpercaya dan RTP 98% yang telah di verifikasi oleh Pagcor dan Slot88 , join Aladin138 sekarang dan nikmati slot online terbaik nya!

  14. ChatGBT’s foundation lies in its deep learning algorithms, which have digested an extensive corpus of text data. This enables the CHAT GBT AI to understand nuances, interpret complex questions, and even engage in creative writing, from composing poetry to drafting essays. Its versatility extends to practical applications such as customer support, educational tutoring, and content creation, showcasing its capacity to adapt to various needs and industries.chat ai gbt free chatbot https://chatgbtt.org

  15. It is important to note that Lahore Call Girls operate within the boundaries of the law and prioritize the safety and well-being of both their clients and the call girls themselves. These services are discreet and confidential, ensuring that your privacy is protected at all times.

  16. Nhà cái ae888 được biết đến là một trong những địa chỉ cá cược hàng đầu tại khu vực châu Á
    #ae888, #nhacaiae888, #ae888vin, #ae888city

  18. I see that there are a lot of people are currently searching for the name of togelhok which is one of the most favorable for online gambling sites related at Indonesia. Try it now and get the bonus right now right away in front.

  22. Dunia perjudian online telah menjadi bagian tak terpisahkan dari gaya hidup modern. Di antara ragam permainan yang ditawarkan, mesin slot tetap menjadi favorit banyak orang. Salah satu platform yang populer adalah Slot campur88

  23. I appreciate the valuable insights you provide in your articles. I’ll be sure to bookmark your blog and return regularly for updates. I’m confident I’ll discover plenty of new information here! Best of luck with your future posts!

  26. Then, click on the “Trade” button to view the available trading pairs. Finally, review the trade details and click on the “Place Order” button.

  27. I think this is a really good article. You make this information interesting and engaging. You give readers a lot to think about and I appreciate that kind of writing 먹튀검증

  28. Công ty trách nhiệm hữu hạn truyền thông giải trí quốc tế okvip là trang web trực tuyến cung cấp dịch vụ xem bóng đá miễn phí. Chúng tôi cũng cung cấp thông tin tin tức thể thao nhanh chóng, bao gồm điểm số và kết quả chung cuộc của mỗi trận đấu.

  29. Very efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors Yandex Games

  30. Trong bối cảnh thị trường giải trí trực tuyến ngày càng phát triển, OKVIP, một công ty trách nhiệm hữu hạn hàng đầu trong lĩnh vực truyền thông giải trí quốc tế, đã khẳng định vị thế của mình bằng việc cung cấp dịch vụ xem bóng đá trực tuyến hoàn toàn miễn phí. Đây là tin vui lớn cho cộng đồng người hâm mộ bóng đá, khi họ có thể theo dõi những trận đấu yêu thích mà không phải lo lắng về bất kỳ khoản phí nào.

  33. I’m really grateful for you due to although time only a little but you still making such as great article and impressive contents especially related to CAMPUR88

  34. Nhà cái pog79 đã trở thành biểu tượng của casino online sau hơn 10 năm hoạt động trên thị trường. Chúng tôi cam kết mang đến nhiều hình thức giải trí casino để đem lại niềm vui cho người chơi sau những thời điểm căng thẳng.#pog79

  36. يمكن أن تكون تركيب كاميرات في الكويت جعلاً دقيقاً مفيداً لكل من المنازل. مع التقدم التكنولوجي، أصبحت كاميرات المراقبة سهلة الاستخدام، مما يشكل تشكيل في الكويت لتعزيز أنظمتهم الأمنية. سواء كنت تتطلع إلى مراقبة إيراداتك أثناء غيابك أو ردع المغادرين للأسبوعين، وكاميرات المراقبة ويمكن أن توفر لك راحة البال وبالأمان. بالإضافة إلى ذلك، يمكن للكاميرات مساعدة السلطات في الكويت على التحقيق في تنوع الأدلة في حالة حدوث أي حوادث. من المهم الالتزام باللوائح القانونية المتعلقة بكاميرات المراقبة في الكويت لكي نلتزم بقانونك لأن خصوصية الآخرين. بشكل عام، يمكن تركيب كاميرات في الكويت خطوة بخطوة لتحسين الحماية الخاصة بك.https://cameras0.com/

  37. يمكن أن تؤدي إلى تركيب كاميرات مراقبة في الكويت لتعزيز التدابير الأمنية بشكل كبير لكل من العقارات السكنية والتجارية. مع زيادة التقدم التكنولوجي، كاميرا مراقبة فيديو عالية الوضوح، وكاميرات المراقبة عن بعد، وتتميز بأقصى قدر من الدقة من الأمان. في الكويت، حيثما يكون الأمر واضحًا هما الأولويتان القصوى، وجود كاميرات المراقبة أيضًا لما فيه البال لأصحاب الأعمال على حد سواء. سواء كان الأمر فيما يتعلق بمراقبة الأحداث الشبوة، أو ردع المعاقين للشهرين، أو مراقبة ثرواتك أثناء غيابك، تساهم في مراقبة جزء مهم في تدابير الحماية الأمنية الشاملة. علاوة على ذلك، ومع القدرة على الوصول إلى لقطات عن بعد من خلال الهواتف الذكية أو أجهزة الكمبيوتر، ويمكن في الكويت البقاء على اتصال ويقظين في جميع الأوقات، مما يضمن سلامة أماكن عملهم.https://kmirat.com/

  38. إذا كنت تواجه مشكلات مع تلفزيونك في الكويت، فهناك بعض الخطوات التي يمكنك اتخاذها لإصلاحه. أولاً، تحقق مما إذا كان تلفزيونك لا يزال تحت الضمان، حيث قد تتمكن من إصلاحه أو استبداله مجانًا. إذا لم يكن تحت الضمان، يمكنك البحث عن محلات تصليح التلفزيون ذات السمعة الطيبة في الكويت. ابحث عن المتاجر التي لديها تقييمات جيدة وفنيين ذوي خبرة للتأكد من أن تلفزيونك في أيدٍ أمينة. من المهم إبلاغ ورشة الإصلاح بالمشكلة التي تواجهها مع تلفزيونك بشكل واضح حتى يتمكنوا من تشخيص المشكلة وحلها بكفاءة. بالإضافة إلى ذلك، استفسر عن التكلفة المقدرة ووقت التنفيذ للإصلاح قبل المتابعة. باتباع هذه الخطوات، يمكنك إصلاح تلفزيونك في الكويت والاستمتاع بمشاهدة برامجك المفضلة مرة أخرى.https://www.tlivzionat.com/

  39. تعد صيانة غسالتك في الرياض أمرًا بالغ الأهمية لضمان الأداء الأمثل وطول العمر. للحفاظ على غسالتك في أفضل حالة، ابدأ بتنظيف درج المنظفات وختم الباب والأسطوانة بشكل منتظم لمنع تراكم العفن والعفن. بالإضافة إلى ذلك، افحص الفلتر وخرطوم التصريف بحثًا عن أي انسدادات أو حطام يمكن أن يعيق وظيفة التصريف في الماكينة. من المهم أيضًا استخدام كمية مناسبة من المنظفات وتجنب التحميل الزائد على الماكينة لمنع الضغط على المحرك والمكونات. وأخيرًا، فكر في جدولة فحوصات الصيانة الدورية مع فني محترف لمعالجة أي مشكلات محتملة قبل تفاقمها. باتباع نصائح الصيانة هذه، يمكنك إطالة عمر غسالتك والتأكد من استمرارها في العمل بكفاءة في الظروف البيئية الصعبة في الرياض.https://www.ghs0.com/

  40. Insightful blog! It explains department stores‘ dynamics clearly, covering space allocation, revenue generation, and innovative ideas. Easy to understand for anyone interested in retail.

  41. Trong không gian mênh mông của internet, Go88 tỏa sáng như một ngôi sao sáng giữa vô vàn các sòng bạc trực tuyến, nơi mà người chơi có thể thỏa sức đắm chìm trong các trò chơi đánh bài đổi thưởng hấp dẫn và đa dạng.

  43. Go88 game bài được biết đến là sòng bạc trực tuyến cung cấp các game bài đổi thưởng top 1 như bắn cá, nổ hũ, tải xỉu, poker, baccarat, blackjack… với nhiều phần quà khủng.

  44. Go88 game bài được biết đến là sòng bạc trực tuyến cung cấp các game bài đổi thưởng top 1 như bắn cá, nổ hũ, tải xỉu, poker, baccarat, blackjack… với nhiều phần quà khủng.
    #go88 #Gamebaidoithuong #go88millionarthur #gamebaimillionarthur

  45. 8XBET Ropagay là top 1 thương hiệu nhà cái 8xbet. Tại website này cung cấp toàn bộ thông tin cá độ bóng đá,bắn cá, xóc đĩa,game bài… và hướng dẫn người chơi tham gia, cách chơi và tạo tài khoản.#8xbet

  46. 8XBET Ropagay là top 1 thương hiệu nhà cái 8xbet. Tại website này cung cấp toàn bộ thông tin cá độ bóng đá,bắn cá, xóc đĩa,game bài… và hướng dẫn người chơi tham gia, cách chơi và tạo tài khoản.
    #8xbet

  47. Trong thế giới đầy cạnh tranh của ngành công nghiệp cá cược trực tuyến, 8XBET Ropagay tỏa sáng như một ngôi sao lấp lánh, thu hút hàng triệu người chơi với sự đa dạng và chất lượng dịch vụ không tưởng. #8xbet

  48. I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well. Thanks… balap 4d

  49. Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work. teratai888

  50. I am impressed. I don’t think Ive met anyone who knows as much about this subject as you do. You are truly well informed and very intelligent. You wrote something that people could understand and made the subject intriguing for everyone. Really, great blog you have got here. situs sabi4d

Leave a Reply

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