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.

292,069 thoughts on “Department Store Industry”

  1. click for more info
    Buying a Large Wood Burning Stove

    A large wood-burning stove can be a wonderful option for any rustic cabin. To avoid fire dangers, keep it away from combustibles like carpets.

    Use only seasoned or dried wood to ensure a longer burning time. Finally, ensure you purchase a wood s

  2. jinda44

    แจกเครดิตฟรี คาสิโน ตั้งแต่แมื่อมีการสร้างสรรค์การเดิมพัน ผู้คนต่างพอใจเกมเสี่ยงดวง ตลอดประวัติศาสตร์ การเดิมพันมีหลายต้นแบบ ตั้งแต่เกมลูกเต๋ ั่งเกมไพ่ที่เล่นในบาร์ในสมัย Wild West แต่ ด้วยความรุ่งโรจน์ด้านเทคโนโลยีรวมทั้งการเพิ่มขึ้นของอินเทอร์เน็ต คาสิโนเด่นที่สุด การเดิมพันรูปแบบใหม่ก็เลยเกิดขึ้น คาสิโนออนไลน์ คาสิโนออนไลน์ที่แรกได้รับการพัฒนาในปี 1994 โดย Microgaming ซึ่งเป็นบริษัทโปรแกรมคอมพิวเตอร์ที่ตั้งอยู่ในเกาะแมน นี่เป็นก

  3. https://qualityran.com/
    satu diantara sisi penting yang wajib menjadi perhatian serta dipersiapkan saat sebelum kita bermain perjudian slots online yaitu modal. modal yaitu sisi penting yang memang tidaklah bisa kita lupakan lantaran tanpa modal kita tidak dapat bermain. sejauh ini kemungkinan banyak salah satunya yang meniadakan modal, pasti kita tak dapat lakukan itu seluruhnya apa lagi kita memainkan permainan slots dengan memanfaatkan uang asli. kalau k

  4. khuyenmaigo99

    Pick a programming language. Initially, you must focus only in a single programming tongue. Open source technology like PHP & MySQL involves high demand now in freelance outsourcing market. Also content management systems like Joomla, WordPress and Drupal greatly help out with building professional websites.

    is often a server-side programming lang

  5. auto vacuum cleaner
    What Makes a Robot Vacuum Cleaner Best?

    The most effective robot vacuums come with a a powerful motor and a set of rollers or bristles that are tough. They also come with large dustbins and a long battery life.

    Some models use smart mapping to create maps of homes. They can be ab

  7. semi automatic Capsule Filling machine
    Throughout your life at points, you have admired certain leaders that have been a significant part of your life. Everyone desires leadership abilities in different ways, and it is a common part of life. You want to be a better leader, and this article can show more of how to do that.

    Make things easy for people to understand. If you can

  12. https://batocomic.net/user/2338419/cakhiatvzbar

    Alabama Crimson Tide- Can Nick Saban deliver miracle yet as before? He definitely consists of a knack for building college pigskin powerhouses. What he did at LSU in the past is slowly coming to fruition in ‘Bama. Doing well . they will again win the West division in the close struggle wi

  15. adhd in adults symptoms and treatment
    Physicians Who Treat ADHD in Adults Near Me

    Many people suffering from ADHD have difficulty at work or in their relationships or at home. They may have tried various coping strategies that didn’t work.

    An ADD/ADHD specialist can provide tr

  17. https://output.jsbin.com/lonoticobo/
    The acronym NLP indicates Neuro Linguistic Programming. The interpretation for this name can be follows: Neuro stands for anything with respect to brain and nervous system in general. Linguistic pertains to language or our verbal or elsewhere interpretation of experiences. Finally, Programming represents forming of brain wiring patterns or beliefs. NLP deals with understanding of our own ability to alter the

  19. Personal development
    Introduction

    In recent years, the concept of green travel has gained significant importance in the quest to safeguard our planet. With growing awareness of climate change and environmental degradation, choosing environmentally conscious travel options has become vital. As more travelers commit to reducing their carbon f

  20. https://x.com/AFikus98242
    Tworzenie ciekawej i inspirującej przestrzeni w naszym wnętrzu to nie tylko kwestia dekoracji, ale przede wszystkim odpowiednio dobranych mebli. Meble pełnią kluczową rolę w kształtowaniu atmosfery oraz funkcjonalności pomieszczeń. Od wygodnych sof, przez eleganckie stoły, po praktyczne regały – każdy element ma znaczenie i wpływa na nasze codzienne samopoczucie.

    W dzisiejszym artykule

  21. auto vacuum cleaner
    How a Robot Vacuum Cleaner Can Improve Your Home

    A robot vacuum cleaner is a powerful machine that does much more than simply vacuum. Certain robot vacuum cleaners come with mapping and navigation systems that allow them to navigate

  22. thor 311
    web-site judi slots online yang ada pada situs eksper asia itu jumlah begitu banyak. dalam jumlah yang sangat banyak, betaruh yang pasti dapat mendapati keuntungan pada jumlah yang besar. maka lihat selalu bermacam kelebihan yang ada di situs slots mempunyai pengalaman. berikut sejumlah kelebihan yang ada di sebuah situs slots online eksper di asia.

    mempunyai feature yang komplet

    situs slots online yang profesi

  23. Aldehydes
    In this study , we manufactured decellularized annulus fibrosus matrix ( DAFM ) /chitosan hydrogel-1 ( DAFM : Chitosan 6:2 ) and DAFM/chitosan hydrogel-2 ( DAFM : Chitosan 4:4 ) by deviating the proportion of DAFM to chitosan . Rat annulus fibrosus ( AF ) -derived stem cells were cultured on these hydrogel scaffolds , and the cell geomorphology , AF-related gene expression , and Interleukin-6 ( IL-6 ) levels were enquired charismatic re

  24. https://datagardener.com/property-and-land-search/
    Carrying out what can really to progress with Amateur astronomy is all about possessing an knowing of it and generating factors happen. Each and every single aim has a kick off level, and by figuring out what that is, you’ll be able to assess your scenario and accomplish your ambitions and goals. You’re going to have an understanding of what to do a lot much more as you proce

  26. 漫畫

    小說 – 未來軍火專家 – 未来军火专家

    – 奶油男孩 – 奶油男孩

    三大巨無霸王國不着手，漫天勝局的末後側向都很難決定，歸因於三個3S級王國每一番都有了一帶戰局的才具。可，煙塵平地一聲雷從那之後久已一年多年時日，2S級權威王國基本上都已到場到這場狂躁的狼煙中央，只有三大巨無霸帝國，兀自莫出動的蛛絲馬跡，相仿之外的戰禍於他們不關痛癢，也許瓜葛似的。

    莫不是三巨無霸君主國對深谷之地的聚寶盆尚未興趣？說出來理應不會有人肯定，可是，三個超等君主國身爲不出手，她倆的管理中層絕望在想何以，逝人懂得，不怕是謝楓等人，也猜不透三陛下國的主張。謝氏王國的偵察兵很難混跡三大巨無霸帝國主旨高層，緣官方一律佔有國力真相大白的好手，高塔已試過，讓他戒指的人近乎那三個帝國的中上層，畢竟高速就被挑戰者窺見了獨出心裁，就像高塔

  27. Nitrosigine
    Nitrosigine will be gaining significant focus as a powerful supplement designed to be able to support athletic performance and overall wellness. Known for their ability to boost nitric oxide ranges within the body, this component continues to be widely recognized for improving blood vessels flow, increasing levels of energy, and promoting better muscle recovery. Its one of a kind formulation combines attached ar

  29. alpha’-dicarboxylic acid
    The formulation of IL-10 and TNF-α genes was studied by RT-PCR . The storey of TNF-α for Lip/PSCS-tPA was lower than that of tPA , which can lead to improved cardiac part in this study , the thrombus licentiousness summons was studied using a rat model . After 4 h , the thrombus area in the femoral vein was importantly lower for groups treated with Lip/PSCS-tPA ( 5 % ) compared to the groups treated with tPA alone ( 45 %

  30. Fireplaces & Stove
    Wood Burner Fireplace Ideas For Your Home

    A wood burning fireplace is a great alternative to traditional masonry chimneys. Modern stoves are EPA-certified and produce less harmful emissions than traditional fireplaces.

    Your fire will burn cleanly and efficiently when you use wood that has been seasoned. Smoke that is

  31. adhd in adults untreated
    ADHD Treatment For Adults – Stimulant Medication

    Stimulant drugs like methylphenidate and dextroamphetamine are generally considered first-line therapy for adult ADHD. These medications boost and balance the levels of neurotransmitters, which are brain chemicals.

    <b

  32. alpha’-dicarboxylic acid
    The Cu/CS NPs establishment was proved through transmission electron microscopy ( TEM ) , Dynamic illuminated doting ( DLS ) , Fourier Transform infrared ( FT-IR ) spectroscopy and XRD diffraction . Cotton and cotton/polyester fabrics were gamma-radiation grafted by aggrandizing to pickup of 100 % , in nanocomposites free-based on Cu/CS NPs loaded in polymer portmanteaus of poly ( vinyl intoxicant ) ( PVA ) and plasticize

  33. https://huaylike.mn/

    ลอตเตอรี่ออนไลน์กระเป๋าเงินดิจิทัล หรือที่เรียกอีกอย่างว่าการเดิมพันทางอินเทอร์เน็ตหรือการพนันออนไลน์ได้เปลี่ยนเป็นแบบความรื่นเริงใจยอดฮิตแล้วก็เป็นแหล่งรายได้ที่มีสมรรถนะสำหรับหลายท่านทั่วทั้งโลก มันเป็นแพลตฟอร์มเหมือนจริงที่บุคคลสามารถเข้าถึงเกมคาสิโนที่นานัปการ การเดิมพันกีฬา แล้วก็แบบอย่างการเดิมพันอื่ ้านของตน ความระทึกใจแล้วก็ความสบายสบายที่แพลตฟอร์มพวกนี้มอบให้มีส่วนทำให้เติบโตอย่างเร็ว ในขณะความอยากสำหรับเพื่อกา

  34. letsvpn app download
    In today’s connected globe, access to the internet plays the pivotal role inside both our personal and professional life. However, the net could sometimes be hard to stick to, whether due to geographical limitations, censorship, or privacy problems. This is exactly where KuaiLian (快连) and LetsVPN (letsvpn) come in – resources designed to boost your online experience by providing unrestricted access, enhanced security, and a greater sense

  35. thor311
    Pengin menang main judi online? jadi semestinya mulai taruhan lewat cara online lewat website biro judi online paling dipercaya. Lantaran lewat biro judi ini, maka bisa demikian ringan buat kerjakan registrasi dan permainan dapat dimainkan dengan amat aman, lebih-lebih lagi ada beberapa permainan demikian ringan ditaklukkan hingga beri kemenangan dan keuntungan.

    Sesungguhnya cari biro judi paling dipercaya serta sah tidaklah terla

  37. ratu311
    bakal ada sejumlah keuntungan yang dapat dirasa beberapa pemain dalam suatu agen slots online bisa dipercaya. beberapa keuntungan yang ada dapat difungsikan langsung untuk menggapai keuntungan dalam permainan. maka kenali selalu beragam keuntungan saat main pada agen slots eksper. di bawah ini ialah beberapa jenis keuntungan main dalam sesuatu agen slots online yang profesional.

    kemampuan memperoleh hadiah super besar

  38. diệt mối chung cư quận Tân Bình
    Công ty Đại Toàn Việt là một trong vào những công ty cung cung cấp cty diệt mọt 100% quận Tân Bình đã và đang được khách hàng mặt hàng tin tưởng lựa chọn trong nhiều năm qua. Công ty sở hữu ĐộI ngũ nhân viên hết mức độ trẻ con trung, nhiều kinh nghiệm, biến hóa năng động, sáng tạo ra và nhiệt độ tình. Đồng thời, công ty cũng vô cùng chú trọng đầu tư hạ tầng vật hóa học, trang thiết bị máy móc hiện nay đại tiên tiến nhằm hoà

  39. Live Casino Malaysia
    The world of on-line video gaming has witnessed a remarkable makeover recently, with live casino sites becoming the gold standard for immersive enjoyment. For enthusiasts in Malaysia, live casino Malaysia offers a seamless fusion of conventional casino site enjoyment with the comfort of playing from the comfort of home. This guide delves into what makes live casino sites in Malaysia an unrivalled opti

  40. order tortoise online
    Buying a Tortoise Online

    Tortoises live a long life. They can typically live for up to a hundred years when they are taken care of properly. This is why it’s important to consider the long-term when you select your tortoise.

    Find a pet store that sells tortoises

  41. adhd treatment for adults medication
    Symptoms of ADHD in Adults

    Many adults with ADHD have problems that first appeared in childhood. However, the symptoms have to be persistent and severe to justify a diagnosis at the age of adulthood.

    Mood disorders are common among adults with ADHD. T

  42. 출장마사지
    ​

    마사지의 대표적인 효능에 대해 알아볼까요?

    ​1. 근육의 피로와 통증을 치료해준다.

    – 가장 대표적인 마사지를 받으면 생기는 효능입니다. 뭉친 근육에 물리적인 힘을 가해 부드럽게 이완 시켜줌으로써 한곳에 정체되어있는 기와 혈의 소통을 원활하게 해주고 근육 경직을 풀어주어 몸의 활동능력을 높여줍니다.

    일상에서 흔히 겪을 수 있는 어깨 결림과 신경통, 디스크 등 통증 예방에도 좋습니다.

    ​

    (다) 림프관에 미치는 영향

    요통, 타박, 두통, 불면증, 천식, 심장병 등의 질환일 때는 각각 일정한 근육이 경직되거나 긴장, 압통, 근력 저하 및 부종을 일으킨다.
    <b

  43. Aldehydes
    On day 94 , there was a 6 cm ( 2 ) open with amour of the dermal and epidermal stratums , moist epithelial tissue , and diffuse bounds , with a RESVECH 2 rating of 6/35 points . Microscopy showed an intact basement membrane , bearing of hair follicles , sweat secretors , coordinated collagen , and angiogenesis . It was concluded that chronic skin wounds in cavalrys represent a symptomatic challenge , and topical chitosan is

  44. Read Even more
    The Advantages of Wood Stove Burning

    Wood stoves are the ideal source of heat for those who are looking to keep their home warm and cosy. However, there are some things to consider before you begin an fire.

    All wood stoves require constant air flow to create combustion and heat. The flow of air is controlled by dampers in the door of the s

  46. aicoin
    In recent years, typically the cryptocurrency industry provides witnessed exponential growth, attracting millions regarding new users to platforms that permit them to buy and sell, invest, and control their digital property. One such system gaining popularity is AiCoin, a new cutting-edge cryptocurrency swap known for the user-friendly interface, high-security features, and AI-powered tools that assist users make better trading decisions. Intended f

  47. tak1 signal
    TFR and FRR effortlessly control liposome size when you look at the consist of 52 nm to 200 nm. In contrast, no significant effect ended up being seen for the TFR in the liposomes Polydispersity Index (PDI); alternatively, FRR around 2.6 was found to be a threshold between extremely monodisperse and reasonable polydispersed populations. More over, it absolute

  48. Seasonal food festivals
    Introduction

    In today’s fast-paced world, handheld gadgets have become an essential part of our routine lives. These multifunctional devices don’t just enable communication but also bring a host of advanced capabilities that enhance convenience. This article explores into the latest features of smartphones that redefine the

  49. thor311
    Perjudian online sebagai salah satunya permainan yang amat heboh buat dimainkan seluruhnya golongan. Disamping sengit, pula memberinya keuntungan yang besar sekali. Tentang hal model keuntungan yaitu, keuntungan hasil dari kemenangan dan keuntungan yang didapat hasil dari sejumlah bonus yang dikasihkan oleh blog judi online paling dipercaya. Dari seluruh keuntungan ini, tentu saja sanggup mengganti posisi keuangan satu orang.

    Bica

  50. 출장마사지
    ​

    추나요법이란?

    한의사가 손 또는 신체의 일부분을 이용하거나 추나 테이블 등의 보조 기구를 이용하여 환자의 신체 구조에 유효한 자극을 줘서 문제를 치료하는 한방수기요법입니다

    환부를 손으로 만지면 통증이 사라지거나 감소하는 것에 착안하여 활용되어온 치료법입니다.

    ​

    <b

Leave a Reply

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