Tuesday, August 27, 2019

Department store Essay Example | Topics and Well Written Essays - 2500 words

Department store - Essay Example The name department store is derived from the fact that they offer different product categories at different prices in different departments. The product categories include home appliances, cosmetics, stationary, furniture, hardware, sporting goods, and electronics among others. They are all provided under the same roof at each specific department store. Department stores are part of other larger retail chains which are in a particular country or worldwide. Due to globalization, most department stores are all over the world which helps them to acquire a larger market share. However, most stores are located in the American, European and Asian markets where most of the consumers are middle class shoppers and business environments are favorable for setting up businesses. A department store operates in such a way that when a customer enters the store, he or she can get a range of products from the store. Different products are present at every department hence there is a lower probabilit y that the consumer will go to shop in another store. As most store claims, they ‘conceal’ the customer. Many department stores are part of chain stores. Since department stores operate in large scale, they benefit from the economies of scale where they are able to operate in large-scale at a cheaper price (Bhabatosh 2006). The accumulated capital is used to open other branches in different locations. Positioning and the relevance of department store Positioning of department stores is a process where the stores identify the target markets in the external environment where it can set up the right type of store. This decision should go hand in hand with the requirements of the population of the selected area. The position should be set in such a manner that it leads to profit maximization by the business firm. Image positioning of the department store should be done in such a way that it contributes to the competitive strategies of the store. The image of a department st ore is very important in attracting customers and especially those that travel a lot (Naji 2004). For example, a loyal customer of a certain store will shop at the store even after moving to another country with the same store. In the competitive global world, stores should come up with strategies that will help them stand out when it comes to competition with other stores. When it comes to the process of positioning, different strategies should be put in place such as; ‘what’ services and capabilities are outstanding so that they can be improves to increase competitiveness, ‘who’ the store is targeting as the consumer. This helps in creating awareness and bonds between the management of the store and the consumer. The last objective is ‘how’ the store can be categorized and distinguished from the other stores. Most stores attract customers by offering low prices and unique variety of goods as compared to the other stores. Different factors sho uld be put into consideration while choosing the position of a department store. They include the set location where the store is to be established. The location affects the type of goods to be offered and the type of customers to expect. For example, a department store in America and another in Africa will have different financial locations. The relevance of a department store to the society also affects the location where it should be established. This includes the type of goods to be offered and the set prices. Retailing current factors such as taxes

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