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.

323,230 thoughts on “Department Store Industry”

  1. online adhd treatment for adults
    ADHD Treatment For Older Adults

    Being diagnosed with ADHD as an adult can be difficult, but treatment can help. can prescribe stimulant medication like methylphenidate or dextroamphetamine to increase brain neurotransmitters and improve concentration.

    They may prescribe nonstimulant medications however

  3. führerschein kaufen erfahrungen
    Buy a Registered Driver’s License Without a Deposit

    If you’re planning to buy a vehicle and do not have a driver’s license, there are some things to consider. You may be required to renew your license or keep your address current.

    New York offers sev

  4. treat adult add
    Treatments For ADHD in Adults

    Adults suffering from adhd are typically treated by medication, psychoeducation and skills training, as well as psychological counseling. The medications include stimulants which enhance and balance brain chemical known as neurotransmitters.

    Your doctor will inquire about the medical history of your family and perform a physical exam to r

  5. automatic vacuum
    A Robot Vacuum Cleaner Review

    A robot vacuum can help you achieve more by removing items from your to-do list. But it’s important to remember that robots aren’t an all-inclusive replacement for a regular full-size vacuum.

    The dustbins of robot vacs are smaller than those of traditional vacs, which means the

  6. https://www.demilked.com/author/diggerhome92/

    Trong thế giới giải trí trực tuyến ngày nay, việc tìm kiếm một nền tảng chơi game đáng tin cậy và hấp dẫn đã trở thành mối quan tâm hàng đầu của nhiều người chơi. BK8 đã khẳng định vị thế của mình như một nhà cái uy tín, mang đến cho người dùng nhiều cơ hội giải trí đa dạng và phong phú. Với giao di

  7. self cleaning vacuum
    Choosing the Right Robot Vacuum

    A robot vacuum can be a fantastic help in keeping your home tidy. It is important to select the right model of robot vacuum to meet your requirements. Some of the features you should look for are mopping, self-emptying bins and recognition of objects.

    You can also find mo

  8. thor311
    Untuk kenyamanan saat lakukan penempatan taruhan judi online pastinya perlu untuk masuk pada agen sah. Dapatkan nama nama blog judi dapat dipercaya buat ketenteraman serta kesinambungan dalam penempatan taruhan. Apabila kamu masuk dalam agen sah terbaik pada umumnya tambah lebih nyaman buat mengerjakan taruhan.

    Termaksud di dalam masalah ini beberapa bettor dapat semakin nyaman buat lakukan akses taruhan. Banyak bettor dapat bertam

  9. Full Article
    How to Order a New YKB Card

    YKB has actually taken an enviable lane for himself in Nigeria’s ever-expanding Afropop scene. He has a dexterous style that equates across genres, linking intimate ideations with bursts of energetic simpleness.

    YKB signed an arrangement with Vakifbank to share its

  10. First off I want to say wonderful blog! I had a quick question which I’d like to ask if
    you do not mind. I was curious to know how you center yourself and clear your head before writing.
    I have had trouble clearing my mind in getting my ideas out there.
    I truly do take pleasure in writing however it just seems like the
    first 10 to 15 minutes tend to be wasted simply just
    trying to figure out how to begin. Any suggestions or hints?

    Many thanks!

    Feel free to surf to my blog สมัคร1688คาสิโน

  12. ansökan om nytt körkort
    How to Order a New Driver’s License in New York

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

    You can pay for your replacement in money, b

  13. comfortable pull out couch
    A Comfortable L-Shaped Couch

    If you’re searching for a couch that makes a statement in your living-room, this modular show-stopper from Maiden Home is it. It’s a modern-day alternative to the world-famous cloud couch from Restoration Hardware, however costs half as much.

    Pick from over

  14. https://bbs.pku.edu.cn/v2/jump-to.php?url=https://rongbachkimm.xyz/
    Trong thế giới xổ số hiện nay, việc chốt số hôm nay không chỉ là một trò chơi may rủi mà còn cần có chiến lược và kinh nghiệm. Rongbachkim, hay Rồng Bạch Kim, đã trở thành cái tên được nhiều người chơi yêu thích. Họ không chỉ cung cấp những con số ngẫu nhiên mà còn ứng dụng những phương pháp soi cầu tinh vi, giúp người chơi có thêm cơ sở để đưa

  15. best affordable robot vacuum
    Best Affordable Robot Vacuum

    This basic robot vacuum is a great option if you don’t require smart features like mapping, no-go areas, and a self-emptying dust bin. It’s priced less than $300. It’s great for cleaning carpets with low piles as well as hard floors. It also picks up pet hair and other litter.

  16. thor311
    di dalam permainan slots online umumnya ada banyak alternatif model negosiasi yang kerap biasa dipakai serta oleh lantaran itu anda semestinya dapat menyadari mengenai sejumlah alternatif cara itu. kalau anda memang dapat mendalami perihal cara getho artinya harap anda dapat memahami dan mengerti terkait trik serta tehnik apa yang dapat dipakai.

    sistem negosiasi dalam sebuah permainan kadangkala tidak serupa di

  17. best wood stove
    Log Burner Stoves

    Log burner stoves are a great method to reduce heating costs. They also help reduce carbon emissions from the home.

    All wood burning stoves have to meet UK building regulations, including the size of the hearth and distance from burning combustibles. These are discussed in detail during the site survey.

    Br

  18. comfy couches for sale
    One Of The Most Comfortable Couch For Your Family

    There’s nothing better than sitting back on the couch after a long day to relax, check out a book or spend time with family. It’s one of the biggest and most expensive furniture pieces in your house, so picking a couch that will fit your family’s way of life is ess

  19. Spiritual leader health services
    In the particular demanding world of clergy service, the well-being of psychic leaders often takes a back couch as they devote themselves to the needs of the congregation. However, Pastoral care support increasing attention of the important importance of local clergy health and fitness has surfaced, bringing to light the first challenges that pastors and religious leaders face. These challenges can in

  21. thor 311
    judi mesin slots online di dunia judi sekarang ini tentu sudah tak asing kembali. sampai mayoritas kelompok beberapa bettor lebih berkeinginan untuk permainkan taruhan yang berikut ketimbang dengan permainan yang lainnya. sebelum akan main taruhan, banyak bettor harus tergabung lebih dahulu dalam sesuatu situs terhebat yang bakal dipakai jadi tempatnya main. pilih berdasar referensi memang dapat menjadi salah satunya trik gampang yang dapat anda ke

  22. https://gamevui.cloud/

    Trong thế giới hiện đại, giải trí trực tuyến đã trở thành một phần không thể thiếu trong cuộc sống của chúng ta. Một trong những điểm đến hấp dẫn và đa dạng nhất cho những ai yêu thích trò chơi giải trí là GameVui. Với sự phong phú về thể loại trò chơi và chất lượng người chơi, GameVui không chỉ mang đến những giây phút thư giãn mà còn mở ra cánh cửa đến với những trải nghiệm độ

  23. natural add treatment
    Adult ADHD Treatment

    Adults suffering from ADHD struggle more than children due to a number of reasons: safeguards from childhood that helped them overcome inattention and impulsivity so they could perform socially mandated but mundane requirements of everyday life are no longer available. Fortunat

  24. treat adult add
    Treatments For ADHD in Adults

    Adults suffering from adhd are usually treated by medication, psychoeducation and skills training and psychological counseling. The medications include stimulants which enhance and balance brain chemical known as neurotransmitters.

    Your doctor will inquire about your fam

  25. portable wood stove
    Choosing a Wood Burning Stove Small

    People who are enthralled by the idea of a traditional heating option that requires physical effort rather than just sitting back and paying the monthly utility bill are obsessed with wood stoves. They post pictures of them in idyllic places.

    They are pleased that PS10 from every Woodland stove sold goes towards forest conserv

  27. automatic vacuum
    A Robot Vacuum Cleaner Review

    A robot vacuum can take chunks off your list and let you perform other tasks. But it’s important to remember that robots aren’t a wholesale replacement for a regular large-sized vacuum.

    The dustbins on robot vacuums are smaller than those in traditional vacs, which

  28. https://xn—-8wf9a2cyax8ewf.net/

    เว็บไซต์ลอตเตอรี่หุ้นอังกฤษ หรือที่เรียกอีกอย่างว่าการเดิมพันทางอินเทอร์เน็ตหรือการพนันออนไลน์ได้เปลี่ยนเป็นแบบอย่างความสนุกสนานยอดฮิตรวมทั้งเป็นแหล่งรายได้ที่มี ับหลายคนทั้งโลก มันเป็นแพลตฟอร์มเสมอเหมือนจริงที่บุคคลสามารถเข้าถึงเกมคาสิโนที่นานาประการ การเดิมพันกีฬา แล้วก็แบบอย่างการเดิมพันอื่นๆจากความส

  30. high quality BALMAIN clothes
    Balmain’s irrefutable mastery of leather-based, shape and print makes it one of the recognisable trend homes in the world. Renowned for opulent collections, Balmain produces iconic street-ready items, just like the cult Balmain Paris t-shirt, that effortlessly capture the enigmatic rockstar spirit and military-influenced modernity that has reintroduced the label to the world st

  31. sv368.reisen
    Then will there exists a good game, one for you will be no remorse. Can be no random number generator or shady business with robots. For example, to have a 300 % bonus, the gamers have to deposit $150.

    Basic strategy comes within form of ones chart. On the top on the chart is every single up card the dealer could make. Running down the left-hand side are often of probability starting hands that

  33. how to get treated for adhd in adults
    ADHD Treatment For Older Adults

    Getting diagnosed with ADHD as an adult can be difficult however treatment is a possibility to help. Doctors can prescribe stimulant medication, such as methylphenidate or dextroamphetamine, to boost brain neurotransmitters and help improve concent

  34. how to get treated for adhd in adults
    Adult ADHD Diagnostic Assessment and Treatment

    A fully comprehensive ADHD diagnostic assessment should take up at least two hours in the majority of cases. It will usually involve an interview that is semi-structured and a psychoeducation regarding the condition (including in a simple language) a

  35. comfy couches for sale
    Buying a Small Comfortable Couch

    Shop this alternative if you like: An unwinded appearance, a lot of color and fabric options, and a couch that can deal with kids, animals, and day-to-day messes. It is available in cotton or leather materials, or in synthetic “efficiency” products that are stain- and spill-resistant.

    <

  38. The Best Day Trips from Major Cities
    Tips for Improving One’s Online Footprint

    Introduction

    In today’s digital age, enhancing site presence is crucial for companies and entrepreneurs alike. With billions of sites competing for eyeballs, understanding how to stand out is critical. This article expl

  39. thor311
    Dalam menyeleksi perjudian online semestinya perlu pula buat anda dapat mengerti kalau ada banyak tingkat pemain dalam permainan itu termasuk ada beberapa pemasok bermainnya. Satu diantaranya yang punyai tingkat tinggi antara lain ialah berperanan sebagai Biro judi ataupun pula rajajudi yang lalu ini mempunyai tanda-tanda serta persyaratan rata-rata. Oleh karenanya anda jadi pemain dapat coba pelajari dan cari tahu terkait tanda-tanda serta syarat-s

  40. SV368
    Once 100 pts. are earned, you will be able to redeem them for cash inside the cashier. Kids and adults enjoy playing this game that resembles tennis. I love to gamble, regardless if I don’t win.

    Party events are smaller versions of Main moments. Games are played in a shorter time besides your hemorrhoids . a human opponent. Beneficial play with friends, you must have a large area where you ca

  41. comfy couches for sale
    How to Discover the Most Comfortable Affordable Couches

    When it comes to inexpensive couches, the most comfortable choices are upholstered in long lasting fabrics that look rich and hold up well to everyday use. Look for natural or synthetic fabrics that can be quickly cleaned and are less likely to show stains gradually.

  42. chat gpt online
    Asking whether or not chatbots are suitable for your small business is like asking if social media advertising and marketing is correct for you. If they haven’t built it to your sector yet, bots are well on their way.

    Messaging applications are starting to be the following large issue in promoting. Social media is continue to king, but messaging applications are bit by bit using above. The way to capita

  43. treat adhd in adults
    natural add treatment and Other Treatments For ADHD

    Everyone responds differently to medication, so finding the right treatment can take time. It’s also important to combine medications with other treatments to tackle behavioral and emotional issues.

    Adults suffering from ADHD frequently have difficulty getting a g

  44. https://expobike.org/

    Trong thế giới bóng đá, việc soi kèo banh đã trở thành một phần không thể thiếu đối với những người yêu thích cá cược. Với sự phát triển của công nghệ và nhiều trang web cá cược nổi tiếng, người chơi dễ dàng tiếp cận thông tin, phân tích và dự đoán các trận đấu. Soi kèo banh không chỉ đơn thuần là việc đặt cược

  45. small comfy couch
    Purchasing a Little Comfortable Couch

    Store this choice if you love: An unwinded appearance, lots of color and material options, and a couch that can manage kids, family pets, and everyday messes. It can be found in cotton or leather materials, or in artificial “performance” products that are stain- and spill-resistant.

    Floyd provides a 90-day return policy, a

  46. wie kann ich meinen führerschein kaufen
    How Much Does it Cost to Buy a German Registered Driving License?

    If you’re planning to drive a vehicle in Germany then you’ll have to exchange your non-EU or EEA license for one German one. This can be done at the Fuhrerscheinstelle in your city. Other requirements include a first-aid course and eye

  47. Learn More
    In the demanding world associated with ministry, the health and wellness of clergy people is often overlooked, yet it is definitely essential for successful leadership and services. Just as they may be called to maintain their congregations, clergy must also prioritize their health, mental wellness, and religious vitality. Acknowledging this need, many businesses and support systems allow us comprehensive well being and support co

  48. https://sunwin.delivery/
    Cá cược là một môn thể thao được yêu thích và thịnh hành trên toàn thế giới. Với sự phát triển của công nghệ, cá cược trực tuyến đã trở thành một thói quen của nhiều người, đặc biệt là những ai yêu thích cảm giác hồi hộp.

    Cá cược trực tuyến là một thị trường phát triển mạnh mẽ hiện nay. Những người tham gia có thể đặt cược vào các sự kiện thể thao lớn để thưởng thức trò chơi. Để có cơ hội chiế

  49. The Secret to Building Long-Lasting Friendships
    Understanding the Importance of Ecological Conservation

    Introduction

    In today’s rapidly changing world, the importance of animal preservation cannot be overstated. As creatures face threats from climate change, the need for concerted efforts in preserving our planet’s biological variety has never been more critical.

    <br

  50. thor311
    sejumlah hal penting yang harus disadari perihal slots online. slots memberi andil lebih dari 70% dalam casino online serta ini adalah tanda ketenaran mereka. kreasi dan penampakan mesin slots udah mengenyam perombakan cepat.

    di casino darat, slots dimainkan di dalam tempat nyaman yang mengangkat rencana lama. sedang sekarang ini anda bisa main slots di mana saja dengan membuka casino online dari desktop serta handphone.

Leave a Reply

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