Page 27 - DMGT554_RETAIL_BUYING

Retail Buying

Notes 2.1 Department Stores

Within this group there are two subclassifications, each based on the merchandise it offers. One
is the full-line department store; the other is the specialized department store organization. The
former offers a wide assortment of hard goods and soft goods such as apparel and accessories for
the entire family, cosmetics, furniture, tableware, electronics, and bedding and also features
non-merchandise departments such as travel centers and beauty salons.

Example: Full-line organizations are Bloomingdale’s, Belk, and Dillard’s. Stores such as
Macy’s and Carson Pirie Scott also feature departments that offer a variety of prepared foods.
The specialized department store restricts its offerings to a large assortment of one or two
merchandise classifications. In this group are stores like Nordstrom, Neiman Marcus, Saks Fifth
Avenue, and Bergdorf Goodman. They are generally upscale operations that specialize in fashion
apparel and accessories for women, men, and children.
Although the merchandise emphasis in each of these groups is different, their organizational
structures are generally the same.

2.1.1 Divisions of the Organization

In the department stores and chains, there are several divisions or functions that make up the
organizational structure. In the table of organization, a division features a number of different
departments as well as the personnel who carry out the responsibilities that have been assigned
to them. They also depict the lines of authority for management purposes. In this way, there is
no duplication of effort on the part of those employed by the company. While each is a somewhat
independent entity, there is a great deal of interaction among the various divisions and
departments to ensure that the operation functions as a cohesive unit.
The tables of organization vary from one department store to another, with each establishing
that which is best suited to their needs. They do, however, feature most of the same divisions.
Whereas these divisional designations or names might be slightly different in many of the
cases, there is a significant similarity among all of them.

Figure 2.1: A Five-function Organizational Structure

Chief Executive Officer

Merchandising Publicity Store Human Control
Management Resources

Source: http://wps.pearsoncustom.com/wps/media/objects/5808/5947551/MCH150_Ch02.pdf

Department stores, as do all other major retailers, prepare organization charts, which are graphic

presentations of their tables of organization. Each chart features the divisions of the company
and the departments found within each one. Sometimes, the company is so large that it is
necessary to offer individual charts of the various divisions to completely spell out their
operations.
The chart above features a typical organization chart for a department store that utilizes five
divisions or functions.

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