| Economy Term Leased department retail refers to a retail model in which a department within a larger retail store is leased out to a third-party retailer. The third-party retailer is responsible for managing and operating the department, including merchandising, staffing, and inventory management, under the umbrella of the larger store's brand. Leased department retail is used in the industry as a means of increasing revenue for both the larger store and the third-party retailer. For the larger store, leasing out departments means additional income without needing to invest in additional inventory or staffing costs. For the third-party retailer, leasing a department provides a lower cost option for establishing a retail presence in a prime location, as well as access to the larger store's established customer base. Leased department retail is commonly seen in department stores such as Macy's and Nordstrom, where individual departments are leased out to companies like Sephora, Apple, and Levi's. This retail model allows for increased revenue, expanded customer offerings, and a diversified customer base for both parties involved. | |||
