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.

389,491 thoughts on “Department Store Industry”

  1. سایت بت
    In the ever-evolving world regarding online gaming and betting, new programs are constantly emerging, offering users refreshing and innovative ways to engage together with their favorite pastimes. 1 such platform making waves is ChizBet. Combining cutting-edge technologies, an immersive customer experience, and also a broad range of gaming options, ChizBet will be rapidly be

  3. چیز بت
    The world regarding online betting has grown rapidly in recent times, with an raising number of platforms supplying bettors a broad variety of alternatives to wager about. The most exciting developments with this space is usually the rise associated with سایت بت (Betting Sites), which includes totally changed how people indulge with their preferred sports, casino games, and

  5. how to get psychiatric assessment
    Psychiatric Assessment Online

    A psychiatric assessment online can assist you comprehend and manage your mental health signs. It can also help you develop a treatment plan to enhance your lifestyle.

    Online assessments often utilize norm-referenced tests in combina

  6. keralalotterytoday
    In a world where fortunes can change in the blink of an eye, the thrill of hitting the jackpot brings an irresistible allure. The excitement that envelops players as they eagerly await the outcome is palpable, turning ordinary moments into extraordinary memories. On that fateful day, anticipation hung in the air, and dreams were just a click away from becoming reality.

    As the number

  7. thor311
    Perjudian online adalah permainan yang paling gampang untuk dilaksanakan dan sanggup memberi keuntungan yang begitu besar untuk petaruhnya. Kerap juga, mereka yang hoby main judi online bisa jadi seorang sultan dengan begitu ringan. Bicara permasalahan judi online, keuntungan bukan sekedar diterima hasil dari kemenangan semata-mata saja. Namun, teknik buat mendapati keuntungan di dunia permainan judi online begitu banyak serta begitu gampang. Satu

  9. sunwin
    The reason as to why online casino bonuses are good everywhere hails from how an on the net casino should encourage you to take a quick look at all of the features that your chosen site has got. The casino will want to know a person discover what is happening with distinct rooms and other kinds of games coming from all parts within the casino. The features will become a regarding allowing an individual to see what is happening and try to o

  11. Turkey teeth
    If you want to whiten your teeth naturally, then look no further that your box of baking soda. This is one of the most proven home remedies. Make a paste with baking soda and water and brush your teeth using this paste, and then rinse. When done consistently, you will soon have gleaming white teeth.

    Many people say that using orange and lemon peels on your teeth can help bring them ba

  13. rerunto.com
    Slot devices are among the most well-known and widely enjoyed games in the world of gambling. Recognized for their flashing lighting, exciting sounds, in addition to possibility of big benefits, slots have evolved in a global trend. Whether you’re at a traditional online casino or enjoying the online gaming encounter, understanding how slot machines work and the particular different types available can enhance the gaming experience. In this article

  15. 무료 에볼루션
    Evolution Slot Game

    The Evolution slot game is an enthralling biology-themed slot game developed by NetEnt. It’s not your usual slot fare, though; it features a unique pay table and bonus features that will keep you hooked for hours.

    Evolution games are available at casinos online with live dealer action of the highes

  16. how to get a psychiatric assessment uk
    Mental Testing and Assessment – Find a Psychiatric Assessment Near Me

    Similar to a medical physician may buy an X-ray or blood test, a psychologist can utilize mental tests and other tools to help understand the reasons for your symptoms. A skilled mental health specialist, such as the grou

  17. kup prawo jazdy kat b+
    How to Buy Driving License A1 Online

    The A1 license allows you to drive motorbikes with a capacity of up to 125cc with the maximum power rating of 11 kW. It is available at the age of 16.

    The latest type of licence is a laminated document that includes information like the driver’s name and date of birth. It

  18. sunwin
    The only draw back to the room is how the area to hang up your clothes along with the bathroom were small, but functional, it will hard two people to navigate. A good thing for me was that most of the rooms at the Casino Royale are non-smoking.

    With the internet casino live casinos you don’t have to venture out anywhere, simply yourself comfortable and connect to the internet to a net casino, po

  19. چیزبت
    The world of online betting features grown rapidly in recent times, with an growing variety of platforms providing bettors a broad variety of choices to wager on. The most exciting innovations within this space will be the rise associated with سایت بت (Betting Sites), that has changed greatly how people employ with their favourite sports, casino video games, and in many cases enter

  20. kup prawo jazdy a1
    Buy a Category B+ Driving License Online

    If you’re looking to become a truck driver you’ll need a commercial driver’s license (CDL). There are various kinds of CDLs that allow you to drive a specific type of vehicles.

    Class B is a popular kind of CDL that allows drivers to

  21. взломанные игры на андроид — это замечательный способ
    получить новые возможности.
    Особенно если вы играете на мобильном устройстве
    с Android, модификации открывают перед вами большие перспективы.

    Я часто использую модифицированные версии игр, чтобы наслаждаться
    бесконечными возможностями.

    Модификации игр дают невероятную возможность настроить игру, что погружение в игру гораздо интереснее.
    Играя с плагинами, я могу повысить уровень сложности, что добавляет
    виртуальные путешествия и делает
    игру более захватывающей.

    Это действительно захватывающе, как такие моды могут улучшить игровой процесс, а при этом с максимальной безопасностью использовать такие модифицированные
    приложения можно без особых проблем, если быть внимательным и следить
    за обновлениями. Это делает каждый игровой процесс лучше контролируемым, а возможности практически широкие.

    Рекомендую попробовать такие модифицированные версии для
    Android — это может добавить веселья в геймплей

  22. ratu311
    Cara mendapati keuntungan bisa Anda dapatkan dalam agen judi online sah. Coba untuk memanfaatkan tehnik ringan yang bisa berikan Anda beberapa keuntungan. Seluruh orang sukai dengan perjudian lantaran punyai bervariasi ragam penawaran prima. Anda bisa bermain dengan gampang kalau miliki agen permainan pas. Tiap cara pas bisa berikan Anda beberapa keuntungan.

    Tentu saja, Anda bisa memanfaatkan langkah ringan untuk keuntungan

  23. how to get a psychiatric assessment uk
    What to Expect From a Psychiatric Assesment

    A psychiatric assesment is the very first step in getting help for a mental health condition. It includes gathering a range of info about the individual’s signs, feelings, and habits. This info is used to produce a medical diagnosis and develop a treatme

  24. چیزبت
    In the particular digital age, on the internet platforms that mix entertainment, technology, in addition to interactive features happen to be becoming ever more popular. A single such platform producing waves in this particular domain is “سایت چیز بت” (Chiz Bet Site). Offering a brand new approach in order to online gaming, content creation, and group engagement, Chiz Wager Site has ge

  27. https://rerunto.com/
    Slot devices are among the most famous and widely played out games in the particular world of wagering. Recognized for their flashing lighting, exciting sounds, and even prospect of big wins, slots have developed right into a global happening. Whether you’re at a traditional gambling establishment or enjoying a great online gaming encounter, understanding how slot machine games work and the different types available can enhance yo

  28. 에볼루션 사이트
    Baccarat Evolution

    Baccarat transformed from a simple parlor game to one that earns billions of dollars in revenue. Therefore, the game is constantly evolving to meet growing demand.

    Yggdrasil and Darwin Gaming teamed up to create a new immersive baccarat game that mimics the brick and mortar casino experience using the Peak an

  29. چیزبت
    In typically the digital age, on the web platforms that blend entertainment, technology, in addition to interactive features will be becoming increasingly popular. One such platform producing waves in this domain is “سایت چیز بت” (Chiz Bet Site). Offering a new approach to online gaming, content creation, and group engagement, Chiz Bet Site has quickly become a go-to place to go for

  30. https://utillitycry.com/
    Judi benar-benar sebuah permainan yang tabu, namun demikian bisa juga menolong player menghasilkan uang secara mudah. Sebab itulah, orang ada banyak yang memainkan tanpa memikir apa karena itu. Keuntungan yang diterima banyak saat memenanginya tiap-tiap spekulasi, lebih-lebih lagi tambahan bonus yang menggairahkan. Tapi, sejumlah player takut terserang razia buat main kembali maka dari itu stop sesaat. Cuma masuk di Agen Judi Onlin

  31. kup prawo jazdy kat b+ online​
    How to Buy a Driving License in Poland

    The process of getting a driving permit In Poland is a significant step for anyone however it’s particularly important for foreigners. The process is complicated, time-consuming, and costly.

    It is important to be aware of the requirements before you start. Fortu

  32. https://www.reddit.com/user/Ok-Park-7521/
    W każdym salonie kanapa odgrywa kluczową rolę, stając się nierzadko centralnym punktem aranżacji. To właśnie na niej spędzamy czas z rodziną i przyjaciółmi, relaksując się po długim dniu pracy. Wybór idealnej kanapy to nie tylko kwestia funkcjonalności, ale również stylu i komfortu. Dlatego warto poświęcić chwilę na zastanowienie się, jakie kanapy najlepiej spełnią nasze wymagania oraz wpasują s

  33. https://switchreone.com/
    ada beberapa teknik yang wajib dijalankan untuk dapat mencapai kemenangan dan memutuskan salah satunya opsi biro judi slots online yang pas. satu diantaranya salah satunya yaitu di mana anda dapat memeriksa dari sisi server yang dipunyai oleh blog judi slots itu. server yang baik pasti mestinya yang benar-benar punyai kualitas oke tapi banyak salah satunya yang tidak paham seperti apakah dan bagaimana cirinya. oleh karenanya poin u

  34. immagini buongiorno per chi ama la cultura
    Il 2024 è alle porte e con l’arrivo del nuovo anno si sente la necessità di portare freschezza e positività nelle nostre giornate. Iniziare la giornata con un buongiorno speciale può fare la differenza nel modo in cui affrontiamo le sfide quotidiane. Le immagini per un buongiorno possono illuminarci il risveglio, ispirarci e trasmettere messaggi di speranza e gioia. Che si tratti di splendi

  35. سایت بت
    In the particular ever-evolving world regarding online gaming and even betting, new systems are constantly appearing, offering users refreshing and innovative ways to engage with their exclusive pastimes. One such platform producing waves is ChizBet. Combining cutting-edge technologies, an immersive end user experience, along with a large range of gambling options, ChizBet is definitely rapidly becoming a go-to destination for vi

  36. ratu311
    Dapat mendapat bonus dari suatu situs broker judi online ialah demikian dibidik oleh beberapa pejudi online. Karena kemunculan bonus itu dapat dijadikan modal dalam menempatkan taruhan dan bermacam kebutuhan yang lain. Akan tetapi, untuk dapat peroleh bonus itu, karenanya tiap pemain mesti penuhi persyaratan dan keputusannya dari webnya itu.

    Persyaratan serta aturannya umumnya tidak sukar, sebab itu peluang untuk mendapatkan

  37. سایت چیز بت
    The world regarding online betting offers grown rapidly in recent times, with an increasing number of platforms supplying bettors an extensive variety of options to wager on. Probably the most exciting advancements in this space is the rise of سایت بت (Betting Sites), that has totally changed how people indulge with their preferred sports, casino games, and in many cases entertainment occasions.

  38. HBO9
    Slot equipment are one of the most iconic and widely played out games in typically the world of wagering. Known for their flashing signals, exciting sounds, and likelihood of big wins, slots have evolved in to a global phenomenon. Whether you’re with a traditional gambling establishment or enjoying a good online gaming encounter, understanding how slot machines work and typicall

  39. Crown Turkey
    If you over use teeth whitening products, especially extremely powerful ones, you could be doing serious harm to your teeth. You should always consult with your dentist before going through such a procedure and make sure it’s safe for you to do so. If your dentist says it’s too soon or you’ve done it too many times – listen to him!

    Many people say that using orange and lemon

  40. prt062607 inhibitor
    Exposures to a selection of pertinent threat elements whether preconception or in utero is now able to be listed making use of imaging methods inside the fetus’ physiological environment. This approach may determine initial “hit” required for diseases which do not become medically manifest until adulthood, and whi

  41. rerunto.com
    Slot equipment are among the most iconic and widely played games in typically the world of betting. Recognized for their flashing lights, exciting sounds, plus possibility of big gains all the perks, slots have evolved right into a global trend. Whether you’re in a traditional online casino or enjoying an online gaming encounter, understanding how slots work and the different types obtainable can enhance your gaming e

  42. momelotinib inhibitor
    The majority of regarding the victims demonstrate apparent symptoms of maladaptive mental makeup after dealing with a violent occasion. But, after involvement into the rehab program, the victims relocated from having maladaptive mental makeup products toward having adaptive mental makeup. The emergent subthemes comprising maladaptive psychological makeup consist of cognitive dis

  44. carbohydratemetabol
    We think this could reflect selective decay in implicit adaptation, since is reported formerly. All told, our results obviously suggest that types of measurement can affect the total amount of explicit re-aiming and implicit adaptation that is assessed. Because it was previously shown that both explicit re-aiming and implicit version have several elements, discrepancies between thes

  45. Turkey teeth
    A professional might be able to help you if you are looking for faster teeth whitening methods. Your dentist can give you whiter teeth in just a few easy visits. know more about teeth whitening methods than anyone and have access to more products.

    <br

  46. how to get psychiatric assessment
    Psychiatrist Assessment Online

    An online psychiatric evaluation can assist you get the medical diagnosis and treatment you require. It can likewise supply valuable details for your therapist or other psychological health professional.

  47. KEMEJA PRIA, KEMEJA MURAH, KEMEJA FASHION

    MENGATAHUI bahwa memilih baju yang tepat adalah langkah penting untuk tampil percaya diri dan sesuai dengan acara yang dihadiri. Dari pakaian santai hingga formal, setiap pilihan memiliki peran dalam mencerminkan kepribadian dan gaya seseorang. Artikel ini akan MENGENAL beberapa tips memilih baju yang sesuai serta menjawab berbagai pertanyaan umum TENTANG pakaian.

    <

  48. kup prawo jazdy a1
    How to Buy Driving License A1

    A driving licence is a document that permits you to drive certain kinds of vehicles. It is obtained through a test and meeting other requirements. The license can be used only in the country or territory that issued it.

    The A1 licence is only for motorbikes with a 125cc size engine. If you wish to upgrade to an unlimited A licenc

  49. https://rerunto.com/
    Slot machines possess long been some sort of staple of internet casinos around the entire world, offering both newbies and seasoned bettors an exciting possibility to try their good luck. Known for their colorful designs, blinking lights, and fascinating sound effects, slots are the go-to destination for many website visitors to both bodily and online casinos. But there’s even more to slots compared to just

  50. 에볼루션 사이트
    The Common Thread Across All Evolution Roulette Games

    Evolution offers a variety of live roulette games, with different settings, variations and experience for players. However, there is a common thread that binds all of their roulette games.

    Xxxtreme Lightning Roulette, Instant Roulette and Gold Bar Roulette are

Leave a Reply

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