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 Explain the characteristics of Chain stores or Multiple shops.


Characteristics are as follows :

1. These shops relocated in fairly populous localities, where sufficient number of customers can be approached. The idea is to serve the customers at a point which is nearest to their residence or work place, rather than attracting them to a central place.

2. The manufacturing/procurement of merchandise for all the retail units is centralized at the head office, from where the goods are detached to each of these shops according to their requirements. This results in savings in the cost of operation of these stores.

Features of Departmental Store : 1. Larger size : It is a retail organisation run on a large scale.

2. Attractive appearance : It is an urban institution and is located in the heart of a big city so as to attract a large number of consumers.

3. Wide choice : It deals in wide variety of goods and seeks to provide all the requirements e.g., from “Pin to Plane” in one building.

4. Centralised purchase : All departments are under centralised management and control.

5. Elimination of Middlemen : It buys its entire requirements of merchandise directly from the manufacturers. Hence it is in a position to eliminate the middlemen.

6. Services and amenities : It provides several useful services and amenities such as bank, post office, reeding room, restaurant etc.

7. Free home delivery : It also provides free home delivery.

Special features of consumers cooperative stores :

1. Voluntary membership on the basis of common interest.

2. One member one vote irrespective of the capital contributed by members.

3. Cash sales and credit sales are there if the policy of stores.

4. Surplus earned by the stores is distributed among the members on the basis of purchase made by them.

5. The store is managed by the elected representatives of the member shareholders.

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Difference between departmental store and chain stores or multiple shops :

Distinguish between Wholesale Trade and Retail Trade.

Explain the types of Itinerant retailers.

 Explain the types of Itinerant retailers.

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