Chapter 7 Fashion Promotion and Retailing
133
jewelry, and shoes. The departments may also
defi ne various price ranges. For instance, there
may be a ladies’ better dresses department and
a budget sportswear area. Designer labels and
well-known manufacturer brands are usually
offered in addition to private label lines. Each
department has salespeople and a place to pay
for the goods being purchased. Each department
is a separate profi t center for record-keeping
purposes.
Department stores may offer credit and
return or exchange privileges. Other conve-
niences may include liberal payment plans, gift
wrapping, pleasant rest rooms, and customer
service desks. They may even have bridal reg-
istries and personal shopping assistants.
Department stores stress customer satis-
faction. They try to maintain a reputation for
quality and integrity. They want customers to
regard them as dependable. Often they serve
as anchor stores in shopping malls, as in 7-11.
Anchor stores are large, well-known retailers that
provide the attraction needed to draw customers
to malls.
Department stores appeal to various income
levels due to their wide range of products and
pricing. However, most department stores target
the majority of their merchandise to people in
the middle to upper-middle income brackets.
Department stores have somewhat higher
operating expenses than most other stores. That
is because they have more personnel, book-
keeping, and extra services. They advertise and
have promotional activities. Their prices must
cover the costs of the extra services and promo-
tions they offer. However, they also have large
buying and sales volumes that help to keep their
prices low. Many small and medium-size
department store chains of the past have been
purchased by larger fi rms and merged into
their businesses.
Branch Stores
When a well-established department store
opens a store in another location, the new one is
called a branch. Branches receive merchandise
and operations direction from the original fl agship
store. See 7-12. The buying, advertising, and
control of the branches can be done centrally to
lower operating expenses. If an item is not avail-
able at a branch store, it may be obtained on short
notice from the fl agship store or another branch.
Retailers fi rst established suburban branches
in widening circles around a main downtown
store. Now branches can be located a great distance
from the home base. Many large stores have
expanded nationally.
Chain Stores
A chain is a group of stores owned, managed,
and controlled by a central offi ce. All the stores
in the chain handle the same goods at similar
prices. All of a company’s chain stores look very
much alike. No store is considered to be the main
store.
7-11
Bloomingdales, Macy’s, Nordstrom, Dillard’s, and
other department stores serve as anchor stores in many
malls. They are often at the corners or ends of large malls,
with many small shops on aisle walkways between them.
7-12
Saks & Company has its fl agship store on Fifth Avenue
in New York City. Many Saks Fifth Avenue branch stores are
located around the country.