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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.

359,314 thoughts on “Department Store Industry”

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  21. في الرياض، حيث يمكن لحرارة الصحراء الحارة أن تجعل تجربة الحمام أقل متعة، فإن تركيب طارد الحمام يمكن أن يغير قواعد اللعبة. طارد الحمام هو جهاز بسيط ولكن مبتكر يقوم برش رذاذ منعش بعد كل استخدام، مما يجعل الهواء باردًا ونظيفًا. وهذا يمكن أن تجعل تجربة حمامك أكثر متعة وراحة، خاصة خلال أشهر الصيف الحارة في الرياض. مع تركيب طارد الحمام، يمكنك تحويلك إلى حمام مريح حيث يمكنك الهروب من الحرارة والرطوبة في الخارج. إنه استثمار صغير يمكن أن يحدث فرقًا بشكل غير مقبول في مستلزماتك اليومية وراحةك بشكل عام.
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  23. يمكن أن يؤدي تركيب طارد الحمام إلى تغيير قواعد اللعبة في الحفاظ على بيئة الحمام النظيف. تم تصميم هذه الأجهزة لتوزيع رذاذ خفيف من العطر الخفيف تمامًا على نيويورك، مما يحافظ على الروائح الكريهة بعيدًا ويترك رائحة ما وراءك. مع المناخ الحار في الرياض، يمكن أن تصبح الحمامات في بعض المنازل ورطبة، مما يجعل من الضروري وجود طارد للحمام لا يسمح لأي رائحة عفنة. هناك راحة للحمام لا مثيل لها، لأنها تتميز بجمالك الدائم ومرحبة خاصة للضيوف. بالإضافة إلى ذلك، تتميز هذه الأجهزة بسهولة التركيب والتشغيل، مما يجعلها حلاً حصريًا من أجل التمتع بتجربة ممتعة في مدينة الرياض الاخبة.
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  24. في الرياض، حيث درجات الحرارة الشديدة أمر شائع، يمكن أن يؤدي إلى طارد الحمام لتغيير قواعد اللعبة. يمكن للطارد أن يساعد في إبعاد الحشرات وإعلانات غير لاسلكية فيها، مما يخلق بيئة مريحة أكثر في الحمام. تخيل الدخول إلى حمام بارد ونظيف دون الحاجة إلى القلق بالإضافة إلى النوم المزعج أو الذباب الذي يطن حولك. لا يوفر الطارد الحماية ضد المجرمين، بل يتحمل أيضًا المسؤولية عن طريق خفض الحاجة إلى الإنفاذ والصيانة بسبب المخلوقات. مع وجود مادة طاردة للحمام، يمكن للمقيمين في الرياض أن يستمتعوا بها داخل هيكل مثالي من الحشرات المتنوعة.
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  25. في الرياض، حيث درجات الحرارة الشديدة أمر شائع، يمكن أن يؤدي إلى طارد الحمام لتغيير قواعد اللعبة. يمكن للطارد أن يساعد في إبعاد الحشرات وإعلانات غير لاسلكية فيها، مما يخلق بيئة مريحة أكثر في الحمام. تخيل الدخول إلى حمام بارد ونظيف دون الحاجة إلى القلق بالإضافة إلى النوم المزعج أو الذباب الذي يطن حولك. لا يوفر الطارد الحماية ضد المجرمين، بل يتحمل أيضًا المسؤولية عن طريق خفض الحاجة إلى الإنفاذ والصيانة بسبب المخلوقات. مع وجود مادة طاردة للحمام، يمكن
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  26. في الكويت، لعب فنيو جزء مهمًا في صناعة البناء والتشييد. هؤلاء العمال المهرة ينتظرون وتركيب وصيانة الهياكل لفترة طويلة مثل الأبواب والنوافذ والواجهات. أذهب فنيو وغيابها في الكويت لتدريب خبير يتمتع بالخبرة في التعامل مع الأطعمة المطلوبة وقطيعها وتشكيلها وفقًا لمتطلبات الجودة الدقيقة، والتأكد من أن المنتجات النهائية تتوافق مع المعايير. يعمل بشكل جزئي مع المهندسين المعماريين والمهندسين وفرق البناء لإثبات الحيوية في التصاميم والنظرة الجمالية للباني. مع التطور السريع والتطور في قطاع البناء في الكويت، واصل الطلب على فنيي تطل على مسار تايلاند في البلاد، مما يجعل الارتفاع وظيفيًا مجزيًا وواعدًا والمتحمسين للعمل مع المعادن والمساهمة في المناظر الحضري للبلدة.
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  27. ذهبو فني إلى الكويت جزء مهمًا في صناعة البناء والصيانة. هؤلاء العمالقة سرعان ما تأخروا عن تركيب الهياكل القديمة مثل النوافذ والأبواب والجدران الساترة. مع التطور السريع والتحديث في الكويت، هناك طلب كبير على الفنيين الذين يمتلكون الخبرة في التعامل مع المؤسسات المتقدمة وغير التقليدية في العمل. يجب أن يكون لدى هؤلاء الفنيين أيضًا اهتمامات شديدة بالتفاصيل وفهم قوي للرسومات التقنية الهامة لكل مشروع. بشكل عام، لا يزال فنيو ينتظرون في الكويت بشكل كامل في مشهد البناء من خلال إنشاء هياكل ألمنيوم وجذابة
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  28. يتحملو فني في الكويت جزء مهم في صناعة البناء والتشييد، حيث يستخدم الألمنيوم على نطاق واسع في هياكل المباني والنوافذ والأبواب والواجهات نظرًا لمتانته وخصائصه الخفيفة. وسرعان ما ظهرت العناصر الجديدة بمهارات عالية في ظهور وتركيب العناصر البسيطة من الألومنيوم ولا تزال جيدة للغاية والاذبية الجمالية للباني. وهي تعمل بعناية واهتمام بالتفاصيل المحددة المحددة والمواصفات المحددة لكل مشروع. مع نمو سريع لقطاع البناء في الكويت، استمر الطلب على فنيي الفراشة في الارتفاع، مما يجعل مسارًا عصريًا فعالًا واعدًا والذين يشغفون للعمل مع المعادن والمساهمة في تطوير الروبوتات والإنترنت في المنطقة.
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  30. العثور على شركة موثوقة في جدة يمكن أن تغير متطلبات اللعبة لعدد كبير من الأشخاص الذين يتطلعون إلى تحسين نظافة اللعبة ومنظمة. مع حياة المدينة الصاخبة والجداول الزمنية المزدحمة، يمكن لشركة خدمات التنظيف الطبية توفير الوقت والتأكد من أن بيئتك الطبية. سواء كنت بحاجة إلى تنظيف المنزل بشكل منتظم، أو خدمات التنظيف الإضافية، أو صيانة المدرسة، يمكن تنظيف محترف في جدة لتلبية طلباتهم. من الموظفين والمدربين وذوي الخبرة في استخدام منتجات التنظيف في فيرندز، لتخلي هذه الشركات عن رضا العملاء ويطلبون بالتفاصيل. من خلال إخطارنا بدعوة الجميع إلى شركة ذات طيبة، يمكنك التركيز على الضرورة الأكثر أهمية والتمتع ببيئة صحية أو عمل صحية.
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  31. يمكن العثور على شركة تنظيف موثوقة في جدة ويمكن أن تغير متطلبات اللعبة لسبب ما وتكتشف المشغولين على حد سواء. تقدم هذه الشركات مجموعة من الخدمات، وهي الوحيدة المميزة والمحددة لديها، وتساهم في التنظيف والتطهير اليومي وحتى التطهير الجزئي ومناسبة للمساحات السكنية والتجارية. يتم تدريبهم من قبل المحترفين على استخدام تقنيات التنظيف المتنوعة والجودة العالية وبيئة نظيفة ومعقمة. من خلال الاستعانة بمصادر لمهام التنظيف لأي طفلة طيبة، يمكن أن توفر الوقت للتمكن من مراسلة معظم احتياجاتهم الخارجية في حياتهم أو أعمالهم. بالإضافة إلى ذلك، يمكن باستمرار الاستعانة بشركة تنظيف في جدة من أجل توفير بيئة صحية
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  32. إن العثور على شركة موثوقة في جدة يمكن أن يحدث فرقًا نسبيًا في توفير مساحة تنظيف منزلية أو مكتبية نظيفة ومنظمة. مع نمط الحياة السريع في جدة، فإن الاستعانة بشركة تنظيف يمكن أن توفر لك الوقت والجهد. توفر خدمة التنظيف الاحترافية هذه مجموعة من الخيارات المتعددة، وضرورية من التنظيف المنزلي وحتى خدمة التنظيف للمناسبات الخاصة. استخدامات أدوات ومعدات عالية الجودة وأداة تنظيف شاملة للوكالة. سواء كنت بحاجة إلى مساعدة في سجاد التنظيف العام، أو حتى تنظيف التنظيف بعد البناء، ويمكن تنظيف سجادة طيبة في جدة توفير حلول تنظيف مخصصة خصيصًا للعاملين في القطاع الخاص. إن الاستعانة بشركة لا تمنحك الوقت، بل تشمل أيضًا توفير حماية نظيفة لك ولعائلتك.
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  33. إن العثور على شركة موثوقة في جدة يمكن أن يحدث فرقًا نسبيًا في توفير مساحة تنظيف منزلية أو مكتبية نظيفة ومنظمة. مع نمط الحياة السريع في جدة، فإن الاستعانة بشركة تنظيف يمكن أن توفر لك الوقت والجهد. توفر خدمة التنظيف الاحترافية هذه مجموعة من الخيارات المتعددة، وضرورية من التنظيف المنزلي وحتى خدمة التنظيف للمناسبات الخاصة. استخدامات أدوات ومعدات عالية الجودة وأداة تنظيف شاملة للوكالة. سواء كنت بحاجة إلى مساعدة في سجاد التنظيف العام، أو حتى تنظيف التنظيف بعد البناء، ويمكن تنظيف سجادة طيبة في جدة توفير حلول تنظيف مخصصة خصيصًا للعاملين في القطاع الخاص. ولعائلتك.
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  34. إن العثور على شركة موثوقة في جدة يمكن أن يحدث فرقًا نسبيًا في توفير مساحة تنظيف منزلية أو مكتبية نظيفة ومنظمة. مع نمط الحياة السريع في جدة، فإن الاستعانة بشركة تنظيف يمكن أن توفر لك الوقت والجهد. توفر خدمة التنظيف الاحترافية هذه مجموعة من الخيارات المتعددة، وضرورية من التنظيف المنزلي وحتى خدمة التنظيف للمناسبات الخاصة. استخدامات أدوات ومعدات عالية الجودة وأداة تنظيف شاملة للوكالة. سواء كنت بحاجة إلى مساعدة في سجاد التنظيف العام، أو حتى تنظيف التنظيف بعد البناء، ويمكن تنظيف سجادة طيبة في جدة توفير حلول تنظيف مخصصة خصيصًا للعاملين في القطاع الخاص. إن الاستعانة بشركة
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