50437852 departmental stores

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DEPARTMENTAL

STORES

FAZIL ABBAS


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A BRIEF

A departmental store is a retail establishmentwhich satisfies a wide range of the consumer'spersonal and residential durable product

needs. They offer consumers a choice of multiple

merchandise lines, at variable price points, inall product categories.

Certain department stores are furtherclassified as discount stores


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WHAT THEY DEAL IN

. Departmental stores usually sell products like

household necessities, apparel, furniture,

home appliances and electronics. Also additionally they offer other lines of

products such as paint, hardware, toiletries,

cosmetics, photographic equipment, toys andsporting goods.


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HISTORY Le Bon March was established in 1838 in

Paris, France by Aristide Boucicault. By 1852 it offered a wide variety of goods in

"departments" inside one building thereby

making it the first ever departmental store. Goods were sold at fixed prices, with

guarantees that allowed exchanges and

refunds.


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John Lewis Newcastle (formerly Bainbridge) is one of

the worlds oldest department store. It is still known

to many of its customers as Bainbridge. It dates back

to 1838 when Emerson Bainbridge went intopartnership with William Alder Dunn and started

business.

Weekly retail profits were being recorded separatelyby each department at the Newcastle Bainbridge

shop in the late 1850s, lending it credence as one of

the earliest departmental stores.

This ledger survives and is kept in the John Lewis

archives. John Lewis bought the Bainbridge store in

1952.


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By 1890 a new world of retailing had

been created as department stores had a

clear market position as universalproviders.

General stores eventually became

department stores as small towns

became cities.

Because of its size it required newbuilding materials, glass technology and

new heating, amongst other architectural

innovations.


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EVOLUTION OF DEPATMENTAL STORES

Earlier -
http://www.newworldencyclopedia.org/entry/Image:Bonmarchestore.jpg


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NOW -


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How often a consumer visits a

departmental store?

7%

11%

18%

27%

17%

17%

3%

Visits

Once a week Twice Once a month

Every 2 to 3 mnths Once every 6 months Almost never

Never


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DEPARTMENTAL STORES IN INDIA

In 1991, Shoppers Stop at Andheri, Mumbaibecame the first departmental store to beestablished in INDIA.

Big Bazaar, Shopper's Stop, Pantaloon, Ezone ,Reliance Fresh are some examples.

Small time department stores - better knownas convenience stores in most western

countries, are also upcoming. Examples are Sabka Bazar, Marks and

Spencers etc.


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ORGANIZATIONAL STRUCTURE

The organizational structure of a departmentalstore will vary by the size and type of thebusiness.

Small stores may combine many sectors togetherunder one division, while larger stores createvarious divisions for each particular functionalong with many layers of management.

Small store may have all of its employees under

one category called Store Operations. A large department store may have a complete

staff consisting of a manager, assistant managerand sales associates for each department.


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EXAMPLE

Store Operations: Management, Cashier,Sales, Loss Prevention

Marketing: Visual Displays, Public

Relations, Promotions Merchandising: Planning, Buying,

Inventory Control

Human Relations: Hiring, Training

Finance: Accounting, Credit

Technology: Information Technology


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LOCATION

Population and customer. How many people walk or drive past the

location ??

Area must be served by public transportation

Customers and delivery trucks should be able

easily get in and out of the parking lot.

Adequate parking.

Competition and Neighbors.

A Few other factors.


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TARGET CUSTOMERS

The most general target customers of

departmental stores are housewives.

Youth and Middle age group peopleare also on the list of these stores.

People with high disposable incomes Middle class.


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PANTALOON


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ABOUT PANTALOON S

Pantaloon is Indias leading retailer that

operates multiple retail formats in both the

value and lifestyle segment of the Indian

consumer market.

Headquartered in Mumbai (Bombay), the

company operates over 16 million square feet

of retail space, has over 1000 stores across 73cities in India and employs over 30,000

people.


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PRODUCT OFFERINGS

Mens wear Ladies wear Kids wear

John Miller Honey Chalk

JM Sports Akkriti Bare 7214

Bare Denim Annabelle

Rig Mix & Match

Accessories

Cosmetics

Stationary for kids

Books and Magazines


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STORE DESIGN

The stores are designed with an urban chic

look keeping in mind the cleanliness andsecurity. Designed such a way that the

products can be viewed easily.


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SWOTSTRENGTHS

o Catering to All segmentso Positive Customer Feedback

o Shopping Convenience

o

Presence in almost all urban areaso Offer variety which is the need of the hour

WEAKNESSES

o Huge amount spent on maintenance

o They require large workforce

o Better to be king of one trade than trying to be the jack

of all trades

o Low and less variable profit margins


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OPPORTUNITIES

Rising disposable incomes

Changing mindsets

Globalization

THREATS

Social issues

Lack of differentiation Inflation

Specialty store


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CASE STUDY

National Department StoreProblem

It was experiencing significant sales decline

and was not meeting profit expectations intheir smaller volume units.

Program goal was to identify short term

initiatives that would improve performance inlow volume stores that would potentially be

applicable to larger stores


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Solution

The largest division was used to review store

operations. Store organization structure wasalso evaluated as was the store selling

effectiveness. Initiatives were developed

that streamlined goods receiving processes,reduced cash handling requirements,

realigned store support roles, and reduced

duplicative and non-value added paperworktasks. Recommendations were made to the

selling approach.


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IMPACT

Small store initiatives returned $1.2 Million

on an annual and recurring basis to the

division Initiatives applicable to larger division

stores accounted for $4 Million

Selling initiatives achieved sales gains from2% TO 8%+ in adopted stores versus control

store performance.


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Source websites

1. www.google.com

2. www.wikipedia.org

3. www.ask.com

4. www.authorstream.com

5. www.businessmajors.about.com
http://www.google.com/http://www.wikipedia.org/http://www.ask.com/http://www.authorstream.com/http://www.businessmajors.about.com/http://www.businessmajors.about.com/http://www.authorstream.com/http://www.ask.com/http://www.wikipedia.org/http://www.google.com/


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THANK YOU

THE END

50437852 departmental stores

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