A department store is a retail establishment which specializes in satisfying a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice multiple merchandise lines, at variable price points, in all product categories. Department stores usually sell products including apparel, furniture, appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelery, toys, and sporting goods. Certain department stores are further classified as discount department stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of a retail chain of many stores situated around a country or several countries.
Upscale Department Store
Characteristics of a typical upscale department store may include:
- Sale of brand name perfumes and beauty supplies, like Burberry, Calvin Klein or M•A•C at the main entrance, with specialists in cosmetics there to assist customers with applying and selecting makeup.
- General sale of name brand clothes above an average price level, such as Dior, Chanel, Versace, Lacoste, etc.
- When items are discounted, the price resembles that of an average priced item at a lower scale department store.
- Sale of small household appliances like blenders, or small electronic items such as portable radios.
- Specialized services or subset businesses such as personal shopping assistance, salons, restaurants, and/or travel agencies.
Some upscale department stores that operate in the United States include national chains like Barneys New York, Bloomingdale's, Lord & Taylor, Neiman Marcus, Nordstrom, and Saks Fifth Avenue, as well as regional retailers such as Bergdorf Goodman, and Von Maur. In the United Kingdom, department stores making up the high-end include Harvey Nichols, Harrods and Fortnum and Mason. In Indonesia, the most upscale department stores includes Sogo and Seibu from Japan, Debenhams and Harvey Nichols from United Kingdom (all managed by PT. Mitra Adiperkasa Tbk.), and Parisian from Indonesia (managed by Lippo Group).
Mid-Scale Department Stores
Depending upon location, Belk, Dillard's and Macy's, are sometimes considered upscale department stores, but the chains overall are often viewed as being situated somewhere between midscale and higher midscale.
Mid-Range Department Store
Characteristics of a mid-range department store may include:
- Sale of cosmetics.
- Sale of some brand names, with greater emphasis on private label brands.
- Sale of accessories.
- Sale of some small household appliances.
- Sale of furniture in larger locations.
Comparison to Upscale Department Store
- Sale of cosmetics but generally not brand name. Fragrances and beauty supplies may be placed further into the interior of the store, without cosmetic specialists at the counters.
- Greater proportion of moderately-priced brand names.
- Accessories and purses aren't upscale brand names, with greater proportion of lesser-known or private label branded items.
Mid-range department stores that operate in the United States include national chains JCPenney and Kohl's. Regional chains such as Gottschalks in the western United States and The Bon-Ton and associated stores in the northern part of the country are also among this grouping of stores.
As noted in details of upscale department stores, Macy's, Dillard's and Belk vary in price points and relative consideration as upscale or mid-range versus local competitors, depending upon location. Some larger locations in affluent areas often carry significant selections of brand name products including brand name accessories and fragrances kept in glass cases, and usually have cosmetic specialists in the beauty department. Brands at above-average price points, if offered at all, are generally limited and full product lines of such brands are not typically available. Smaller and more remote store locations — often, the legacy of acquisitions of smaller retailers — may concentrate squarely on moderately-priced merchandise. California-based Gottschalks mirrors these chains, though in a specific region with little presence in major metropolitan areas. Macy's are typically the anchors of upscale malls and are situated among other high-end department stores such as Tysons Galleria or The Domain in Austin. Nationally known JCPenney has incorporated elements of upscale stores such as salons and custom home decorating services, along with offering optical shops, portrait photography studios and designer-produced private labels.
The national chain Sears is also in this category, but often is considered a lower grade mid-range department store due to marketing a higher proportion of private label and lesser-known label goods in apparel and housewares segments. Sears differs from most mid-range department store chains in its common inclusion of departments for hardware, garden and outdoor equipment, automotive service, and large appliances and electronics — product segments more typical of discount or so-called "big box" retailers.
Discount Department Store/Super-Store
- Sells cosmetics, generally not name brand.
- Generally doesn't sell name brands.
- Sells accessories, generally not name brand.
- Sells small household appliances.
- Sells toys, electronics and video games.
- Sells household necessities.
- The "super-store" variant usually sells food products and has a "one stop shop" vibe.
Comparison to Mid-Range Department Stores
- Sells fewer major brand names.
- Offers a wider variety of products.
- More likely to anchor a power centre than an indoor shopping mall.
Some discount department stores that operate in the United States include: Shopko, Kmart and Wal-Mart. Although Shopko and Kmart are more upscale than Wal-Mart; further, Wal-Mart could be considered a "super discount department store". Target is also in this category but may be considered a more upscale Discount Department Store because it puts a greater emphasis on current fashion and on special merchandise lines from well-known designers such as Isaac Mizrahi and Thomas O'Brien.
Off-Price Retailer
- Most products are name-branded.
- Products may be over-runs, seconds, or last season's stock liquidated from department stores.
- Product mix typically emphasizes women's clothing and may include men's clothing, children's clothing, shoes, accessories, perfume, toys, housewares, or packaged gourmet food.
- Stores are most frequently located in power centres but may also appear in shopping malls.
Off-price retail department stores include T.J. Maxx, Factory 2-U, Century 21, Gabriel Brothers, Ross Dress For Less, Marshalls, and Burlington Coat Factory. TJX, the parent company of Marshall's, and TJ Maxx, has been experimenting with Home Goods superstores that carry a larger range and variety of housewares, including furniture.
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