Difference between Departmental Stores and Multiple Stores
Basis |
Departmental Stores |
Multiple Stores/Chain Stores |
---|---|---|
Location |
They are centrally located in the city. | They are located in every important locality of the city. |
Range of Products |
They deal in a large variety of products as the main aim is to satisfy all the needs of customers under a single roof. | They are specialised in only one line of product. |
Services Offered |
They provide several services to the customers, like free home delivery, liberal credit, etc. | They provide limited services with respect to guarantee and repair of the products. |
Pricing |
They do not follow a uniform pricing policy for all departments. Discount is offered on certain products to clear the stock. | They maintain a uniform pricing policy and sell the products at fixed prices. |
Class of Customers |
Customers belonging to higher income groups are attracted by such stores. | Customers from all income groups are attracted by them. |
Credit Facilities |
Credit facilities are provided to regular and reputed customers. | No credit facilities are provided as all sales are made in cash only. |
Flexibility |
There is more flexibility as policies can be changed as per the requirements. | There is less flexibility as branch managers have to operate as per instructions received from the head office. |
Risk |
Risk is more as it is centred on one shop only. | Risk is divided over all the shops. |
Advertising |
Advertisement is done locally as they are usually located in one place. | Advertisement is done to cover a larger area as multiple shops are spread throughout the state or country. |
Display/Decoration |
Every departmental store can adopt different decoration and display styles. | Every chain store has a uniform decoration and display style. |
Difference between Departmental Stores and Multiple Stores
Departmental Stores and Multiple Stores are two types of Fixed Shop Large Retailers. These retailers have a fixed place of sale. They do not move from one location to another in search of customers. They have shops in the market or residential areas.
Table of Content
- What are Departmental Stores?
- What are Multiple Stores/Chain Stores?
- Difference between Departmental Stores and Multiple Stores