DEPARTMENTAL STORES

FAZIL ABBAS

A BRIEF
A departmental store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable product needs. They offer consumers a choice of multiple merchandise lines, at variable price points, in all product categories. Certain department stores are further classified as discount stores

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 and sporting goods.

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.

 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 into partnership with William Alder Dunn and started business. Weekly retail profits were being recorded separately by 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.

 By 1890 a new world of retailing had been created as department stores had a clear market position as universal providers. General stores eventually became department stores as small towns became cities. Because of its size it required new building materials, glass technology and new heating, amongst other architectural innovations.

EVOLUTION OF DEPATMENTAL STORES

Earlier -

NOW -

How often a consumer visits a departmental store?

Visits
Once a week Every 2 to 3 mnths Twice Once every 6 months 3% 7% 17% 11% 18% Once a month Almost never

Never

17% 27%

DEPARTMENTAL STORES IN INDIA

In 1991, Shoppers Stop at Andheri, Mumbai became the first departmental store to be established in INDIA. Big Bazaar, Shopper's Stop, Pantaloon, Ezone , Reliance Fresh are some examples. Small time department stores - better known as convenience stores in most western countries, are also upcoming. Examples are Sabka Bazar, Marks and Spencers etc.

ORGANIZATIONAL STRUCTURE
The organizational structure of a departmental store will vary by the size and type of the business. Small stores may combine many sectors together under one division, while larger stores create various divisions for each particular function along 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 manager and sales associates for each department.

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

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.

TARGET CUSTOMERS
The most general target customers of departmental stores are housewives. Youth and Middle age group people are also on the list of these stores. People with high disposable incomes Middle class.

PANTALOON

ABOUT PANTALOONS
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 73 cities in India and employs over 30,000 people.

PRODUCT OFFERINGS
Mens wear Ladies wear
John Miller Honey JM Sports Akkriti Bare Denim Annabelle Rig Mix & Match Accessories Cosmetics Stationary for kids Books and Magazines

Kids wear
Chalk Bare 7214

STORE DESIGN
The stores are designed with an urban chic look keeping in mind the cleanliness and security. Designed such a way that the products can be viewed easily.

STRENGTHS o Catering to All segments o Positive Customer Feedback o Shopping Convenience o Presence in almost all urban areas o 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

SWOT

OPPORTUNITIES
Rising disposable incomes Changing mindsets Globalization

THREATS Social issues Lack of differentiation Inflation Specialty store

CASE STUDY
National Department Store Problem It was experiencing significant sales decline and was not meeting profit expectations in their smaller volume units. Program goal was to identify short term initiatives that would improve performance in low volume stores that would potentially be applicable to larger stores

 Solution The largest division was used to review store operations. Store organization structure was also 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 paperwork tasks. Recommendations were made to the selling approach.

 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 from 2% TO 8%+ in adopted stores versus control store performance.

Source websites 1. www.google.com 2. www.wikipedia.org 3. www.ask.com 4. www.authorstream.com 5. www.businessmajors.about.com

THE END

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