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.

318,914 thoughts on “Department Store Industry”

  1. thor311
    pemain permainan taruhan judi slots online kerap kali betul-betul mempersulit untuk banyak para pemain terpenting pemula. pasalnya kadangkala kita sini terserang blokir internet positif sehingga tak dapat dicapai. namun beberapa pemain harus juga dapat kenali jika ada cara-cara dan trik yang dapat dikerjakan buat dapat menyelesaikan persoalan itu. ada sejumlah panduan dan anjuran dan cara penting yang selanjutnya dapat anda coba kerjakan buat dapat

  2. ansökan om nytt körkort
    How to Buy a Driving License

    Getting a driver’s license can be a substantial step towards independence and liberty. Nevertheless, the process can be intimidating for some individuals.

    The primary step is preparing to pass the composed test, which includes multiple-choice

  3. psychological treatment for adhd in adults
    Alternative ADHD Treatment For Adults

    While medication is an essential component of treatment for adhd, many adults look for alternative solutions to manage their symptoms. These include diet supplements, biofeedback and mind-body practices like yoga and meditation.

    <br

  4. evidence based treatment for adhd in adults
    Alternative ADHD Treatment For Adults

    While medication is an important part of treatment for adhd, a lot of adults seek alternative remedies to help manage their symptoms. These include dietary supplements biofeedback, mindfulness-based practices such as yoga and meditation.

    <br

  5. how to get treated for adhd in adults
    Treatment For Inattentive ADHD in Adults

    There are many ways to help an adult with inattention ADHD. The first step is obtaining an assessment. A medical professional will talk to you and your family to determine if you suffer from symptoms.

    They will check for at least six ADD symptoms and make sure that they are causing you seri

  6. how to get treated for adhd in adults
    ADHD in Adults – Treatment Options

    ADHD is a common condition of the nervous system that affects 4,4% of the population. It is associated with high rates of comorbidity, including depression, anxiety and substance abuse and significant emotional, social and occupational impairments.

    Psychotherapy and medications are both effective treatment

  10. โซล่าเซลล์ 5000w ราคาถูก
    ในยุคที่เราเผชิญกับปัญหาสิ่งแวดล้อมและการเปลี่ยนแปลงของสภาพอากาศ การหันมาใช้พลังงานสะอาดอย่างโซลาร์เซลล์จึงกลายเป็นทางเลือกที่น่าสนใจสำหรับหลายๆ คน การติดตั้งโซล่าเซลล์ไม่เพียงแค่ช่วยลดค่าใช้จ่ายในระยะยาว แต่ยังช่วยลดการปล่อยก๊าซเรือนกระจกและสร้างบ้านของคุณให้เป็นมิตรกับสิ่งแวดล้อมมากขึ้น

    แต่เมื่อพูดถึงการติดตั

  11. superpg1688 casino
    In the fast-paced world of online gaming, getting a platform that combines excitement along with winning potential can be a sport changer. Superpg1688 provides rapidly gained focus as being a prime desired destination for both experienced players and beginners looking to enhance their betting experiences. Having a wide array associated with opti

  12. https://www.themirch.com/blog/author/eyefloor95/
    Trong thế giới lô đề hiện nay, việc dự đoán kết quả chính xác không chỉ giúp người chơi có thêm cơ hội trúng thưởng lớn mà còn mang lại những trải nghiệm thú vị và hồi hộp. Với sự phát triển của công nghệ thông tin, nhiều website đã ra đời nhằm phục vụ nhu cầu này, và một trong những cái tên nổi bật nhất chính là Soi Cầu. Năm 2024, Soi Cầu đã khẳng định được vị thế của mình với nhữ

  15. https://sunwin.delivery/
    Cá cược là một hoạt động 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 thói quen của nhiều người, đặc biệt là những ai yêu thích cảm giác hồi hộp.

    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 đấu thể thao để thử vận may. chơi, bạn chỉ cần lựa chọn tr

  16. ansökan om nytt körkort
    Order a New YKB Card

    After the success of his previous single San Siro, Ykb is back with a sexy track titled Bo Card. The record reveals a new layer of melodic expertise from the young singer-songwriter.

    Ykb’s voice completely complements the smooth instrument

  17. Full Article
    Getting Your New Driver’s License

    Getting your driver’s license can provide you freedom and independence. It enables you to navigate without waiting on friends or depending on mass transit.

    The New York State Department of Motor Vehicles has actually started to issue new driver’s licenses and

  18. e7080 inhibitor
    The very mesoporous WO3 has been further investigated as an interfacial cathode buffer layer (CBL) in dye-sensitized solar cells (DSSCs) and perovskite solar cells (PSCs). A significantly enhanced photoconversion performance has actually boosted within the overall performance for the counter electrode utilized in traditional DSSC (as platinum) and PSC (as carbon) products by ∼48 and ∼29%,

  19. ving777

    เล่นคาสิโนสด ในขอบเขตที่จำกัดของความเพลิดเพลินดิจิทัล คาสิโนออนไลน์จูงใจด้วยเกมที่น่าเร้าใจและก็ผลตอบแทนที่เป็นได้ เมื่อก่อนที่จะทอดลูกเต๋าเปรียบเสมือนและก็แจกไพ่ มีขั้นตอนสำคัญที่มักถูกละเลย ซึ่งก็คือกรรมวิธีสมัครสมาชิก เนื้อหานี้เริ่มการเดินทางด้วยการเล่าเรื่องเพื่อเผยเหตุผลที่ประหลาดห้าประการว่าเพราะเหตุใดการให้ข้อมูลที่ถูกในร

  20. nytt körkort malmö
    Purchasing a Category B Driving License

    If you’re trying to find a profession in truck driving, purchasing a category B driving license is an excellent choice. In the semi-unified system used throughout EEA nations, this driver’s license allows you to operate a single car with a GVWR of 26,001 pounds or more and a trailer that does not surpass 10,000

  21. psychological treatment for adhd in adults
    ADHD Treatment For Older Adults

    It isn’t easy to identify ADHD in adults, however treatment is available. Doctors may prescribe stimulant medication such as dextroamphetamine, or methylphenidate to increase brain neurotransmitters.

    They may prescribe nonstimulant medications however they are less effective. The cardiovascular risks associa

  22. vad kostar det att beställa nytt körkort
    What You Required to Understand About Your Driving License Purchase

    Getting a driving license is an essential step in the American dream. It provides you self-reliance and access to lots of opportunities. Nevertheless, you need to follow the rigorous guidelines of the ro

  23. how to get treated for adhd in adults
    Untreated ADHD in Adults – Why It’s Time to Take the Test

    Untreated ADHD can have serious effects on relationships, work performance and even your personal security. It can also lead to issues with finances, housing, and health care.

    A diagnosis of adult ADHD

  24. nytt körkort malmö
    How to Buy a Driving License

    A driver’s license is a legal document that allows an individual to drive a vehicle or truck. Getting one requires conference eligibility criteria, studying the traffic laws, practicing driving under guidance, and passing written and road tests.

    The process for getting a licen

  25. https://turningpointconsulting.com/cmmc-fastpath/
    of folks uncover American soccer to be a crucial subject matter, and it has been talked about a good deal. Never neglect that using measures on the expertise that you achieve is just as needed, if not a lot more critical, than genuinely discovering out the knowledge. It’s all about getting info, and learning exactly what it is about. If you do this, data is truly valuable. If

  26. thor311
    provider slots online play n go yaitu satu diantara sebegitu banyak permainan yang dapat berikan keuntungan secara cepat. menjadi provider yang eksper dan memiliki kualitas, play n go yang pasti amat patut buat diputuskan. apa keuntungan yang bisa diperoleh dari provider slots play n go itu? berikut ia beberapa jenis keuntungan yang dapat diperoleh dari play n go.

    permainan yang cepat memberikan keuntungan

    play

  28. go source
    New Driver’s License Requirements

    New York state lawmakers passed a law that requires people to get a new, REAL ID-compliant driver’s license or state ID. This new requirement will impact countless Empire State chauffeurs.

    To qualify, you should bring 2 proofs of residency and a Social Security card

  29. go source
    How to Get a New Driver’s License

    If you need a new driver’s license, there are a number of steps you should take. You might need to take a roadway test and pass a composed examination. Likewise, you must undertake monitored driving practice and attend pre-licensing courses.

  30. https://sunwin.delivery/
    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 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 trò chơi cá cược hấp dẫn hiện nay. Những người tham gia có thể đặt cược vào các trận đấu thể thao để thử vận may. Để bắt đầu, bạn chỉ cần t

  31. transportstyrelsen nytt körkort
    How to Order a New Driver’s License in New York

    The state of New York makes it easy to change your driver’s license if it gets lost or stolen. You can apply online, by mail or in individual to get a new file.

    You can pay for your replacement in cash, by check or money order, or with a major

  33. Forensic accountant for fraud cases
    Navigating complex legal disputes requires precision, expertise, and comprehensive support. Litigation support services in Florida offer essential assistance to attorneys, corporations, and individuals involved in contentious cases. With the growing demand for expertise in Florida’s legal system, these services bridge the gap between legal needs and technical proficiency.

  34. treat adhd in adults
    Treating Adults With ADHD

    If you suffer from ADHD even the most basic tasks can be a challenge. You may struggle to get up in the morning, meet deadlines, and maintain healthy personal and professional relationships.

    To be diagnosed with ADHD, you must experience five or more symptoms of inattention and/or hyperactivity-impulsivity that b

  35. treat adult adhd
    Treatment of Adult ADHD

    The majority of people with ADHD have mental health disorders such as anxiety or substance abuse disorders, or depression. These conditions can affect the effectiveness of ADHD medications.

    Psychological counseling assists patients in managing their symptoms and improves relationships. Counseling can include cognitive behaviora

  36. thor311
    Obyek untuk mendapat keuntungan yang besar dalam penempatan taruhan judi online sudah pasti tidak seringan yang dipikirkan. Pasalnya pertarungan dalam suatu taruhan terkadang ketat sekali hingga susah buat menang taruhan. beberapa betaruh butuh untuk mengaplikasikan skema penempatan taruhan yang cocok yang dapat mengirimkan pada banyak untung.

    Agar dapat mendapati sejumlah keuntungan dalam penempatan taruhan itu tentunya beberapa b

  37. Thể thao hitclub
    Đặc biệt, Hitclub còn tích hợp công nghệ livestream để cung cấp những trận đấu thể thao, trò chơi casino hay eSports trực tiếp, giúp người chơi theo dõi các sự kiện và tham gia cá cược ngay lập tức. Trải nghiệm mượt mà và không gián đoạn này khiến người chơi cảm thấy như đang tham gia vào một sự kiện thực tế.

    Để đảm bảo trải nghiệm người chơi luôn mượt mà, Hitclub cung cấp dịch vụ hỗ trợ khách hàng 24/7 với

  38. ansökan om nytt körkort
    How to Order New Driver’s License

    When your license gets lost, stolen or mutilated you need to change it. In order to do so you will require to complete an application and submit evidence of identity.

    You can apply online, face to face or by mail. It is recommended that you report your lost or taken license to the police to produce a proof in c

  39. https://turningpointconsulting.com/cmmc-fastpath/
    When you have a history in Air sports activities, attaining your goals and goals must not be any issue supplied that you have these basic understandings. can not procrastinate because this will make issues even worse also. Disappointment can be avoided by basically going one particular stage at a time throughout the complete process. It is vital that you check out web web page

  40. vad kostar det att beställa nytt körkort
    How to Buy a Driving License in New York

    A driver’s license is a kind of government-issued identification that permits you to run automobile lawfully. It likewise acts as a state ID card. There are numerous types of driver’s licenses in the United States, including standard, REAL ID and enhanced ID cards.

  41. eu führerschein kaufen erfahrungen
    How to Buy a Driving License in Germany

    If you’re from a nation that has an agreement of reciprocity with Germany You can exchange your license without taking any practical or theoretical tests. It is recommended to apply within six months of arrival.

    Be sur

  42. führerschein zum kaufen
    How to Buy a Driving License in Germany

    If you are moving to Germany from a country or US state that has reciprocity with Germany then you can exchange your license. In some instances, you may have to pass a theoretical and practical test.

    Prices vary, so take your time and shop around! Also, make sure to select a reputable driving school.

  43. Litigation support services near me
    Legal disputes in Florida often involve intricate financial matters that require expert analysis. Forensic accounting is a crucial tool in untangling these complexities, ensuring fair outcomes for all parties involved.

    The Intersection of Forensic Accounting and Legal Cases

    Forensic accountants work closely with attorneys to provide financial clarity in

  44. treating add
    Adult ADHD and Comorbid Disorders

    Many adults with ADHD have comorbid disorders like major depression (Kessler and co., 2006). Many patients are not responsive to medication for depression and may benefit from psychotherapy.

    The most effective medications to treat the most fundamental symptoms of ADHD are those that boost and balance levels of certain neurotransmitters i

  46. self cleaning vacuum
    The Best Automatic Vacuums

    If you’re looking for a vacuum that can mop, one that stores floor maps or one that will automatically return to its charging station following every cleaning session, there are plenty of options. The best robotic vacuums offer premium features at a low cost.

    Make sure you choose models with long battery lives

Leave a Reply

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