What is the scope of business of a department store?

It is a large-scale retail store that operates a wide range of products, including clothing, shoes, hats, jewelry, cosmetics, decorative items, home appliances, household goods, and so on. It is a large building, according to the different commodity departments set up sales areas, counter sales and open-shelf sales, focusing on the service function, to meet the needs of the target customers in pursuit of life style and taste of the retail industry.

Department stores have a wide range of business scope, a wide variety of products, a full range of colors, both professional stores and general stores, which are convenient for customers to choose from a wide range of shopping requirements to meet the needs of consumers in various aspects of shopping, with a certain degree of modern management tools and service facilities, and high quality of service. The stores set up commodity departments or commodity cabinets according to the categories of commodities to carry out specialized management.

Expanded

Characteristics

1, the growth period

Rapid development. Department stores in the market share of this business as soon as possible, far more than the traditional grocery stores and single-species shopping malls, with its full range of goods, large-scale, clearly marked prices, shopping environment elegant and other advantages to attract consumers.

Good benefits. Growth period of the department store operators can expect to obtain good operating efficiency, sales margins of up to 5-10%.

2, maturity

Decreasing growth rate. In the conditions of limited growth in social demand, due to the sharp increase in large department stores, coupled with other forms of business such as supermarkets, convenience stores, specialty stores, warehouses, etc., so that each mall originally share the cake is getting smaller and smaller.

Decline in profitability. Due to the increase in the number of companies within the industry, leading to increased competition, which ultimately led to a decline in profitability, the entire industry can only operate at a small profit.

Decline in sales per unit area. In the growth period, the growth of business area and sales growth there is a positive correlation function, that is, sales will increase with the increase in business area and growth. But into the maturity of a distinctive feature, that is, a sharp decline in sales per unit area.

3, decline

Social demand continues to decline. As a result of new forms of retail business into the market, with a strong vitality, so that consumers no longer favor the department store as a form of business, and move to new forms of business.

Industry-wide benefits continue to slide, leading to industry-wide losses. When the department store as a form of business has not been able to income against expenditure, profit-making business situation, that the decline of the department store has arrived.

Baidu Encyclopedia - Department Store

Baidu Encyclopedia - Department Store