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.

29,743 thoughts on “Department Store Industry”

  2. The ij.start.cannon setup process for every Canon model is almost similar, however the download through Canon Inkjet printers are suitable for home, business, school, and others to improve productivity. Depending on your requirement

  3. You should be consider restarting both the devices, including your Canon printer as well as your computer. This will quickly resolve the issue effectively and effortlessly. https //ij.start.cannon .

  4. installation process may differ. you can also visit canonsetup-canon.com/ijsetup website for same. Https //ij.start.cannon.Depending on your requirement, it offers a type printer including PIXMA, SELPHY, MAXIFY, etc.

  5. If you want to improve your erections, you should consider taking fildena 100 mg. This prescription medication should be taken once a day with a glass of water. It is not recommended to take it more than four hours before sex. Your physician can give you more details about how to take this medication. To avoid side effects, you should swallow the tablets whole, not crush, chew, or break them. It is also recommended that you do not consume alcohol while using Fildena 100, since it can cause drowsiness.

  6. The software also features a full-fledged mixer for live performances, as well as a MIDI editor that lets you edit or add new songs in the style of an original drummer! EZdrummer Crack

  9. The onset time of Cenforce 100 is approximately 30 minutes to four hours. Take a pill with a glass of water at least one hour before you plan to have sex. This helps the medication dissolve in the blood more quickly. Once you are sexually aroused, you can achieve an erection within 30 minutes of taking the medicine. It may take a little longer to work, however, so it is important to consume water prior to taking the drug.

  10. You can easily set up your Canon printer through drivers from wireless connection, USB, and a few components. The setup process for every Canon model is almost similar, however the download through http //ij.start.cannon and installation process may differ. …

  11. ij.start.cannon Some factors need to be in mind while choosing an inkjet printer for you. Later, you can easily set up your Canon printer through drivers from wireless connection, USB, and a few components. ….

  12. ij.start.cannon Some factors need to be in mind while choosing an inkjet printer for you. Later, you can easily set up your Canon printer through drivers from wireless connection, USB, and a few components. …

  14. If you’re looking for the best possible experience when it comes to online activity, you need a router that can provide top speeds and reliability. routerlogin.net | http://www.routerlogin.net is just such a router. With this powerhouse of a device, you’ll be able to enjoy all the internet has to offer without any frustrating lag or connection issues. And because it’s so easy to set up and use, you’ll be up and running in no time at all!

  15. If you’re having trouble logging in to your router, you’ve come to the right place! Our easy-to-use login portal will get you up and running in no time. Plus, our expert support staff is always here to help if you need it. Log in now and start browsing the web with ease! https://netgearssetup.com/

  16. you can also hire an older one if you’re looking for someone a little more mature. Escorts in Karachi come from all walks of life and can fill your every sexual desire.Escorts in KarachiTOP LOCATIONS. ESCORTS IN BAHRIA TOWN KARACHI · ESCORTS IN CLIFTON · ESCORTS IN CLIFTON BEACH KARACHI · Escorts In Karachi.03204494414

  17. SIG SAUER P320 FOR SALE

    SIG SAUER P320

    SIG SAUER P320

    SIG P210 FOR SALE

    SIG SAUER 1911

    MOSSBERG 500 FOR SALE

    SIG P220 LEGION

    SIG P226 LEGION FOR SALE

    SIG P229 LEGION FOR SALE

    SIG P238 FOR SALE

    SIG SAUER P320 FOR SALE

    SIG P320 M18

    SIG P365 XL FOR SALE

    1911 EMPEROR SCORPION

    MOSSBERG 500 FOR SALE

    MOSSBERG 590

    MOSSBERG 590 FOR SALE

    SIG P210 FOR SALE

    P210 TARGET

    SIG P226 LEGION FOR SALE

    SIG SAUER P226 MK25

    SIG P226 LEGION FOR SALE

    SIG P238 FOR SALE

    P320 RXP XCOMPACT

    P320 FCU

    SIG P320 AXG SCORPION

    P320 RXP COMPACT

    SIG P320 M18 FOR SALE

    P320 NITRON COMPACT

    P320 X VTAC

    P320 RXP XFULL SIZE

    SIG P320 M17 FOR SALE

    SIG P320 M18 FOR SALE

    SIG P365 XL FOR SALE

  18. Buy guns online

    Buy gun online

    Guns For sale

    PISTOLS FOR SALE

    RIFLES FOR SALE

    GLOCK 23 FOR SALE

    GLOCK 21 FOR SALE

      GLOCK 19 FOR SALE

      GLOCK 17 FOR SALE

      9MM HANDGUNS FOR SALE

      SPRINGFIELD 1911 RANGE OFFICER

      SPRINGFIELD 1911 RANGE OFFICER

      GLOCK 43X FOR SALE

      GLOCK 26 FOR SALE

      GLOCK 43 FOR SALE

     SPRINGFIELD 1911 RANGE OFFICER

    SPRINGFIELD 1911 LOADED

    SPRINGFIELD 1911 EMP

    9MM HANDGUNS FOR SALE

    XD-M ELITE

    45 ACP HANDGUN

    BEST SINGLE STACK 9MM

    BUY GUNS ONLINE

    SUB COMPACT 9MM

    HELLCAT RDP FOR SALE

    SPRINGFIELD HELLCAT FOR SALE

    SMITH & WESSON M&P9 SHIELD

    SPRINGFIELD SAINT VICTOR FOR SALE

    SPRINGFIELD SAINT VICTOR

    SAINT VICTOR 308 PISTOL

         SAINT VICTOR PISTOL

     SAINT VICTOR 308 PISTOL

     SPRINGFIELD SAINT EDGE FOR SALE

     SPRINGFIELD SAINT EDGE FOR SALE

  19. Escorts in Karachi are excellent companions at disco parties and in bed. Their outstanding features will keep you entertained and take your mind off your emotions. Escorts in KarachiTOP LOCATIONS. ESCORTS IN BAHRIA TOWN KARACHI · ESCORTS IN CLIFTON · ESCORTS IN CLIFTON BEACH KARACHI · Escorts In Karachi.03204494414

  30. HP Printer hardware. Visit 123.hp.com/laserjet from the browser. Using your LaserJet model name, download software. Double click to start the installation. Connect the printer via wireless network or USB. Add the LaserJet printer to your system devices.Finish the HP LaserJet setup.

  31. Independent Gurgaon Escorts is one of the profoundly populated urban areas in the nation. It is notable for its instructive and visitor areas, and many individuals come here for business and training openings. So it is a youthful city, and they are so crossed with their rushed calendar that amusement is an unquestionable requirement for them at the end of the week. The Gurgaon Escorts are the one-stop answer for every one of your needs, and they tend to give you nowhere, hazard independent and impeccable Agency. You will undoubtedly appreciate their conversation deeply. They are taught and restrained by nature, and the time spent in their Agency will give you a genuine estimation of your cash. They have one aphorism as the main priority: giving quality Agency to the customers with no significant hiccups. Select a decent grown-up companion discoverer site that gives the most extreme advantage. For example, young Gurgaon Escorts are relying upon web-based dating sites.

  33. 바카라사이트 Wonderful work! This is the kind of information that are meant to be shared around the net.
    Disgrace on the search engines for not positioning this put up higher!

    Come on over and discuss with my site . Thanks =)

  34. 토토 This is really interesting, You are a very skilled blogger.
    I’ve joined your feed and look forward to seeking more of your great post.
    Also, I’ve shared your web site in my social networks!

  37. Are you a new man in Karachi? If so, you might be wondering what Escorts in Karachi do.Escorts in Karachi
    TOP LOCATIONS. ESCORTS IN BAHRIA TOWN KARACHI · ESCORTS IN CLIFTON · ESCORTS IN CLIFTON BEACH KARACHI · Escorts In Karachi.03204494414

  38. Male pattern baldness is a hereditary condition that will affect about half of all men by the time they reach their forties. To reduce the baldness problem Order Generic Propecia online from a trusted drug store.

  39. The Delhi Call Girl has resumed the service that it has been providing for a long-time. The current members were ousted from the agencies and new members have been recruited to replace them. After receiving lots of complaints about them, the agency has decided to stop it for a week until it is not set up with new members. a new member was an experienced member yet she had to give some time to consider the fact of the call girl service which is provided by Delhi Call Girl.
    Delhi Call Girl

  40. Meet one of the high-profile Chandigarh Call Girl workers, if you have been searching for a high-profile worker then you can see the numbers of call girl profiles who have been working with us, here I would like to provide some information mentioning the backlink.
    Chandigarh Call Girl

  44. Consider about what an individual want to find from the training while well, besides only the certificate. It is likely you want a detailed comprehension of the normally accepted guidelines linked with the discipline of cybersecurity. Consider like “what truly does the industry while a whole discover as being the requirements intended for a thorough comprehending of cybersecurity”? At the same time, what do an individual want to get from your cybersecurity education, in addition to be able to the certificate you are going to earn? cyber security courses online

  45. Amazing!! I wrote about this on my Eco-Blog, and linked back here of course. Hope that’s ok! I will surely bookmark them and your post as well. Cardi B Height.
    I would like to take the ability to say thanks to you for the professional suggestions I have usually enjoyed.
    I discovered your blog site on the internet and appearance a few of your early posts.

  46. Your blog is very nice and we hope you are providing more information in future times.

    Want the Best essential oil in Jeneva?
    Then visit us
    Larbreblanc Santé & Bien-Être

  47. Very nice post you have shared with us thank you so much for sharing this useful information.. There is clearly a great deal to think about this. I think you made some great focuses in Features too. Continue working, extraordinary job !
    Also You can Visit:huiles essentielles bio suisse

  49. Phantom recently hit a million users on its desktop wallet · Phantom Wallet is joining SolFlare in expanding into the mobile wallet space.

Leave a Reply

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