What happens is big department store is just a property owner of the commercial building, it attracts big or small stores to rent a space inside to sell their products…it is similar to a wet market. You can bargain also.
What you described is the concessionaire model especially for cosmetics, such as in Taka first floor. Other department stores could be operating on the stock consignment model which is not a space rental model.
(02-05-2023, 01:26 PM)starbugs Wrote: [ -> ]What you described is the concessionaire model especially for cosmetis, such as in Taka first floor. Other department stores could be operating on the stock consignment model which is not a space rental model.
Are there any department stores under stock consignment model in Singapore? It is too risky to go with stock consignment model, that is why the department stores push the risks to the lenders and earn the rental income.
(02-05-2023, 01:23 PM)lvlrsSTI Wrote: [ -> ]What happens is big department store is just a property owner of the commercial building, it attracts big or small stores to rent a space inside to sell their products…it is similar to a wet market. You can bargain also.
Actually not necessarily, a department store might or might not be the property owner of the commercial building.
In fact, many department stores are merely anchor tenants that rent the space which they then "sublet" some of the space to other tenants (usually for more well-known higher volume brands / products or unrelated stuff like F&B) and assume the role of the retailer for the rest of the space directly.
Nowadays other than traditional departmental stores like OG and Tangs, most other departmental stores do not own the physical store space.
(02-05-2023, 04:00 PM)maxsanic Wrote: [ -> ]Actually not necessarily, a department store might or might not be the property owner of the commercial building.
In fact, many department stores are merely anchor tenants that rent the space which they then "sublet" some of the space to other tenants (usually for more well-known higher volume brands / products or unrelated stuff like F&B) and assume the role of the retailer for the rest of the space directly.
Nowadays other than traditional departmental stores like OG and Tangs, most other departmental stores do not own the physical store space.
Even the shops inside OG don’t belong to OG.
(02-05-2023, 04:06 PM)lvlrsSTI Wrote: [ -> ]Even the shops inside OG don’t belong to OG.
Some of the brands inside OG departmental store are probably on a concessionary model while other individual stores within OG buildings could be leasing from OG Group directly.
The way I see it OG is primarily a property company, I think they keep the departmental business as a historical legacy. Same as Tangs and Metro that are really more property investment companies then anything else.
The way OG departmental store operates quite honestly if not for the fact that the property business is "subsidizing" the department business, it would have gone out of business long time ago.
(02-05-2023, 04:15 PM)maxsanic Wrote: [ -> ]Some of the brands inside OG departmental store are probably on a concessionary model while other individual stores within OG buildings could be leasing from OG Group directly.
The way I see it OG is primarily a property company, I think they keep the departmental business as a historical legacy. Same as Tangs and Metro that are really more property investment companies then anything else.
The way OG departmental store operates quite honestly if not for the fact that the property business is "subsidizing" the department business, it would have gone out of business long time ago.
OG will be gone sooner or later…OG stands for Old Generation
(02-05-2023, 04:55 PM)lvlrsSTI Wrote: [ -> ]OG will be gone sooner or later…OG stands for Old Generation
Well it is my mother generation and it was "hip" for their era haha
huh? it has been liddat since my father emporium era