Department Stores
Competitive Landscape
Consumer spending and fashion trends drive demand. The profitability of individual companies depends on effective merchandising and marketing. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by offering unique merchandise, providing superior customer service, or delivering a distinctive store experience. The industry is labor-intensive: average annual revenue per worker is about $110,000.
Opportunities
Exclusive Merchandise - Private-label and exclusive brands allow department stores to differentiate from competition and develop customer loyalty. Private-labels give companies more control over design, can have shorter...
Business Challenges
Competition from Alternative Retailers - Companies face intense competition from a wide variety of retailers, including discount department stores, warehouse clubs, and specialty stores. Discount department stores, such as Target,...