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.

400,056 thoughts on “Department Store Industry”

  1. Read Homepage
    Psychiatric Assessments

    A psychiatric evaluation is used to detect emotional, behavioral or developmental disorders. It examines behaviors in relation to hereditary, ecological, social, cognitive (thinking), and emotional components.

    Health suppliers ask questions about the patient

  2. https://www.tumblr.com/leo88comco
    Leo88 là một trong những cổng game nổi bật nhất hiện nay trong thị trường game online. Với giao diện đẹp mắt, thân thiện với người dùng, Leo88 đã thu hút được hàng triệu game thủ trên toàn thế giới. Đây là một chỗ lý tưởng để người chơi tham gia các game giải trí hấp dẫn và đem đến những cơ hội chiến thắng lớn.

    Một trong những lý do Leo88 được ưa chuộng là vì sự đa dạng các t

  3. portable wood stove
    The Craftsmanship of an Outdoor Wood Burning Stove

    Craftsmanship is an essential aspect in the longevity and performance of outdoor equipment. Designed with this in mind this stove oozes strength and resilience.

    It is designed to reduce the amount of smoke produced and is suitable to cook or heat water. This makes it a safe option for camping trips.

    <b

  4. click the next web page
    Shed Wood Burner – Safety Considerations

    If you have a garden or log cabin, or an off grid residence, you might want to install an electric stove inside. There are a few factors to be considered before you do this.

    It’s important to make sure your cabin or shed is properly insulated in order to

  5. sb590885 inhibitor
    The Landaise greylag goose (Anser anser) is a great model to examine steatosis in migratory wild birds as it is domesticated, but is nonetheless, from a genetic point of view, near to its crazy migratory ancestor. It has actually a fantastic intake capability and an excellent predisposition f

  6. browse around these guys
    How to Buy Driving License Online

    Discover DMV services and how to get your driver’s license, register your vehicle, and more. Plus, discover pointers and techniques to make the procedure as easy as possible.

    An International Driving Permit can help drivers run cars in foreign nat

  8. ratu311
    dengan semua keringanan dalam penempatan taruhan permainan slots karena itu ini yang bakal mengirimkan di sangat banyak keuntungan. lebih-lebih lagi saat ini agen taruhan games slots online menyediakan begitu banyak permainan bermutu. sudah pasti sekarang karena ada dukungan pelayanan provider populer bakal memberinya kelapangan serta ketenteraman untuk jalankan taruhan.

    untuk beberapa umumnya di tempat i

  9. ghế mát xa Bình Phước
    Trong khi, quý khách cũng nên mò hiểu thêm về hệ thống Showroom ABCSport bên trên 63 thành phố bên trên cả nước để dò cửa ngõ hàng gần nhất và chọn mua những thành phầm phù hợp. Bên cạnh đó, những cái ghế mát xa Bình Dương tại Brand Name Toshiko còn được tích hợp chế độ ko trọng lực để khung hình được nghỉ ngơi dễ chịu nhất. điều đặc biệt, technology nhiệt hồng nước ngoài cũng rất được

  10. dnabet

    เว็บไซต์ลอตเตอรี่ออนไลน์ดิจิทัล สลากกินแบ่งเป็นต้นแบบการเดิมพันยอดนิ โดยมีบันทึกเกี่ยวกับเกมหวยย้อนไปถึงอารยธรรมโบราณ ตัวอย่างเช่น จีนแล้วก็ภาษากรีก เมื่อเวลาผ่านไป สลากกินแบ่งได้ปรับปรุงจากเกมที่โชคกล้วยๆไปสู่อุตสาหกรรมที่มีการจัดแจงและก็ควบคุมอย่างเข้มงวด โดยมีผู้เล่นหลายล้านคนทั้งโลก ลอตเตอรี่ออกวัน

  11. Best Concrete Layout Dallas TX
    When it comes to construction, one of the most critical aspects is the layout of concrete. A well-planned concrete layout sets the foundation for the entire project, ensuring stability, functionality, and aesthetics. In Dallas, the demand for expert concrete layout services has grown, with many homeowners and businesses seeking the best options available. Understanding how layout affects the ov

  12. nu7026 inhibitor
    Amygdalin treatment caused downregulation of a few genes that perform critical roles in DNA replication when you look at the MCF-7 mobile range. Hence, it may be of good use as an anticancer broker.Amygdalin therapy caused downregulation of a few genes that perform important roles in DNA replication in the MCF-7 cellular range. Hence, it may be helpfu

  13. read the full info here
    Buy Our C Driving License – Riskutbildning

    Before you can book your final test you need to take part in a threat training -riskutbildning. The majority of driving schools will provide this and it typically costs between 300– 400 SEK/person.

    will need to suppleme

  14. psychiatric assesment
    The Benefits of a Psychiatric Assessment Online in the UK

    A psychiatric assessment online is a crucial primary step for lots of individuals with mental health concerns. It can supply a thorough medical diagnosis and guide your treatment. It also provides convenience and privacy.

    Your psychiatrist will ask questions about your past psychological health experience

  15. read more
    In the world of motorbikes, events are more than just gatherings; they are celebrations of passion, culture, and even community. Whether it’s an exciting motorbike exhibit showcasing the most current models or the exhilarating motorbike festival filled with stimulating activities, the potential for engagement will be immense. As the particular demand for motorcycles proceeds to grow, therefore does the have to

  17. ratu311
    metode bisa jekpot slots online dapat dijalankan dengan benar-benar gampang sekali. – mesin slots tergolong satu diantara permainan kasino yang sediakan variasi permainan menarik. tergolong satu diantaranya dalam masalah ini merupakan permainan slots. permainan slots yaitu satu diantara macam permainan yang tidak asing kembali. model permainan itu sangat umum serta wajar banyak dimainkan sampai sekarang ini.

  19. vestido verde esmeralda
    El vestido verde esmeralda es una pieza que evoca elegancia y sofisticación. Este tono vibrante, que recuerda a las joyas más preciosas, no solo resalta la belleza natural de quien lo lleva, sino que también aporta un aire de frescura y modernidad a cualquier atuendo. Desde las pasarelas de moda hasta las celebraciones más exclusivas, el vestido verde esmeralda

  20. https://khususmaxim.com/
    di indonesia itu terdapat beberapa bandar slots online yang dapat diputuskan. sampai ada sekian banyak bandar penyuplai permainan slots online yang dirasakan begitu gampang untuk ditundukkan. bandar – bandar tercantum di atas kertas dapat ditaklukkan dengan benar-benar gampang serta cepat. berikut beberapa ciri-ciri dari broker judi slots online yang ringan ditundukkan oleh beberapa betaruh.

    pelayanan 24 jam

  21. entrectinib inhibitor
    mHealth application prescription is apparently possible generally speaking practice. The barriers and facilitators identified by the providers and patients overlapped, though privacy was of less issue to customers. The involvement of health professionals and patients is critical for the effective integration of effective, evidence-based mHealth apps with clinical rehearse

  22. old wood stove
    The Craftsmanship of an Outdoor Wood Burning Stove

    Craftsmanship is an essential aspect in the longevity and performance of outdoor equipment. This stove was made with strength and endurance in mind.

    It can be used to cook and heat water and its design reduces smoke production. This mak

  23. please click the following webpage
    Modern Wood Burning Stoves

    Wood burning stoves have enjoyed revival due to their efficiency and warm feeling, as well as new stylish designs. They also generate more heat and require less maintenance than fireplaces.

    The MF Fire Nova is a wonderful example of modern wood

  24. Best Concrete Layout Dallas TX
    Concrete layout is an essential aspect of construction that serves as the backbone of any solid structure. Whether you are building a driveway, a patio, or a foundation for a new home, understanding how to properly layout concrete is crucial for achieving durability and longevity. The success of your project largely depends on careful planning and execution in the initial stages, ensuring that

  25. Nice blog! Is your theme custom made or did you download it from somewhere?
    A theme like yours with a few simple adjustements would really make my blog stand out.
    Please let me know where you got your theme. Thanks

    Check out my site sex indo viral

  26. a cool way to improve
    Emergency Psychiatric Assessment

    Clients typically concern the emergency department in distress and with a concern that they might be violent or intend to hurt others. These clients require an emergency psychiatric assessment.

    A ps

  27. Köpa taxilicens Körkort
    How to Buy Driving License Online in New York City

    There are numerous methods to get a driver’s license in New York. The most common way is to go to the MVA and make a visit online or over the phone.

    You can then go to the MVA and submit the needed documentation in person. The proce

  28. https://www.webcamsexchat.xxx/

    Exactly how Cost-free Live Video recording Conversation Functions and What to Anticipate

    As modern technology remains to increase human communications, completely free online online video clip chat has turned into a popular method for grownups to link intimately online. In this article, we’ll discover exactly how th

  29. https://www.tumblr.com/leo88comco
    Cổng game Leo88 là một trong những cổng game hot nhất hiện nay trong lĩnh vực game online. Nhờ vào giao diện đẹp mắt, dễ sử dụng, Leo88 đã thu hút được rất nhiều người chơi trên toàn thế giới. Đây là một chỗ lý tưởng để người chơi trải nghiệm các trò chơi cá cược hấp dẫn và đem đến những cơ hội chiến thắng lớn.

    Một trong những lý do Leo88 được ưa chuộng là vì sự đa dạng các t

  30. Read Homepage
    Comprehensive Integrated Psychiatric Assessment

    Comprehensive incorporated psychiatric assessment includes a comprehensive evaluation of an individual’s mental health. This type of assessment can help determine the cause of a patient’s symptoms and figure out the best treatment alternatives.

  32. old wood burning stove
    Wood Burning Stoves Near Me

    Wood stoves can be beautiful, efficient way to heat your house. When purchasing a stove there are a few things to consider. They include the energy efficiency of the stove that is EPA-certified, cost and maintenance requirements.

    Avoid becoming “number-bound” and based your

  33. stemcells inhibitor
    This article is designed to offer a systematic, methodical method of the evaluation of such biopsies, focusing mainly on diagnoses other than inflammatory bowel disease. In many laboratories (80.0%), tissue-based molecular test work ended up being decreased. In 40.0per cent of laboratories (6/15), the decrease ended up being >25%, plus i

  34. Concrete Layout Dallas TX
    When it comes to construction, one of the most critical aspects is the layout of concrete. A well-planned concrete layout sets the foundation for the entire project, ensuring stability, functionality, and aesthetics. In Dallas, the demand for expert concrete layout services has grown, with many homeowners and businesses seeking the best options available. Understanding how layout affects the overall

  35. thor311
    Taruhan judi online tentunya persis dengan pendanaan. Perihal ini sebab modal diperlukan buat menempatkan taruhan judi itu. Untuk itu karenanya penyiapan modal serta management modal salah satunya kunci kesuksesan untuk banyak bettor dalam mendapati keuntungan. Tak boleh lakukan tindakan sembarangan dalam taruhan judi lantaran bisa berbuntut rugi.

    Akan tetapi apakah benar bila lakukan penempatan taruhan judi butuh mod

  36. littlekrishnaimages
    Little Krishna, the beloved deity of Hindu mythology, is often depicted as a playful and enchanting figure who brings joy and wisdom to his devotees. The images of little Krishna are rich in symbolism and charm, capturing the essence of his divine childhood and the playful antics that endear him to the hearts of millions. From his mischievous stealing of butter to his

  37. De Grootste Showroom van NL
    We streven ernaar om milieuvriendelijke materialen en processen te gebruiken in onze traprenovaties. Dit betekent niet alleen het kiezen van duurzame materialen, maar ook het implementeren van praktijken die de ecologische voetafdruk van onze werkzaamheden minimaliseren. Onze klanten krijgen de geruststelling dat hun traprenovatie niet alleen mooi en functioneel is, maar ook veran

  38. VIDEOGRAF NUNTA BUCURESTI
    Într-o lume în continuă schimbare, pasiunea poate transforma un hobby într-o carieră plină de satisfacții. Aceasta este povestea lui Adrian, un tânăr care a descoperit cinematografia de nuntă în 2010 și, prin muncă și dedicare, a transformat-o într-un stil de viață.

    „Eram tânăr și fără prea multe cunoștințe, dar am fost extrem de determinat să învăț tot ce era de învățat”, spune Adrian despre

  39. ku-60019 inhibitor
    We found 40 reports, posted from September 2013 through April 2017, that described the instances of 66 customers (mean age, 71 ± 12 yr; 30 females; 30 clients with mitral stenosis, 34 with mitral regurgitation, and 2 mixed) whom underwent transcatheter mitral valve replacement. We recorded their particular baseline clinical attributes, comorbidities, di

  40. psychiatric assesment
    Psychiatric Assessments in the UK

    A psychiatrist is a medical physician who specialises in mental health. They go through extensive training to diagnose what can be complicated signs and conditions.

    They may do a physical exam which might involve feeling your pulse or taking your high blood press

  42. kayıp ilanı
    kayıp-ilani.gen.tr platformunda kayıp ilanlarınız geniş kitlelere ulaşır ve bulunma şansını artırır. Özel filtreleme sistemimiz sayesinde kayıp türüne göre arama yapabilir ve benzer ilanları inceleyebilirsiniz. yükleme özelliğiyle ilanınızı daha etkili hale getirebilir, detaylı açıklamalar ekleyebilirsiniz. Yerel kolluk kuvvetleriyle koordineli çalışarak kayıpların bulunma sürecini hızlandırıyoruz. Mobil uygulamamız sayesinde kayıp ilan

  43. shop wood burning stove
    5kW Wood Burning Stove

    Whether you want cost-effective heating or are environmentally conscious this 5kW wood burning stove is the best choice. It is 80percent efficient and reduces emissions to meet the latest environmental standards.

    This DEFRA approved and Eco Design exempt stove features an eno

  45. https://www.youtube.com/@leo88comco
    Leo88 cổng game là một trong những cổng game nổi bật nhất hiện nay trong lĩnh vực game online. Với giao diện đẹp mắt, thân thiện với người dùng, Leo88 đã thu hút được rất nhiều người chơi trên toàn thế giới. Đây là một chỗ lý tưởng để người chơi tham gia các game giải trí hấp dẫn và đem đến những cơ hội chiến thắng lớn.

    Lý do chính Leo88 được ưa chuộng là vì sự đa dạng cá

  46. https://www.honestlyhealthyfood.com/
    Beberapa pemula itu amat diminta untuk pilih web judi online yang memungkinnya buat pasang taruhan bet kecil. Penempatan taruhan bet kecil ini memang menjadi soal yang sangat penting serta vital. Dengan gunakan blog judi online yang berikan pelayanan bet kecil, betaruh tidak akan cepat kekurangan dana untuk main.

    Site yang sesuai buat pemula itu salah satunya cirinya ialah adalah dapat dip

  47. VIDEOGRAF NUNTA BUCURESTI
    Într-o lume în continuă schimbare, pasiunea poate transforma un hobby într-o carieră plină de satisfacții. Aceasta este povestea lui Adrian, un tânăr care a descoperit cinematografia de nuntă în 2010 și, prin muncă și dedicare, a transformat-o într-un stil de viață.

    „Eram tânăr și fără prea multe cunoștințe, dar am fost extrem de determinat să învăț tot ce era de învățat”, spune Adrian despre

  48. Concrete Layout Dallas TX
    When embarking on any construction project, one of the most critical yet often overlooked aspects is the concrete layout. Proper concrete layout sets the foundation for everything that follows, making it essential for both aesthetic appeal and structural integrity. Whether you are laying a new driveway, patio, or foundation, understanding the nuances of concrete layout can significantly impact the o

Leave a Reply

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