Fixed Shops-Large Stores

FIXED SHOPS- LARGE
STORES
Large Scale Fixed shops are started with large capital,
located in important places, markets, towns and cities. Types
of fixed large stores :-
• Departmental stores
• Chain Stores or Multiple Shops
• Super markets
• Mail order Business House
• Malls
• Consumer Co-operative stores

DEPARTMENTAL STORES
A Departmental store is a large establishment
offering a wide variety of products, classified
into well defined departments, aimed at
satisfying Practically every customer’s need
under one roof.
For Example: Spencer, Chennai

Akberally, Mumbai
Features of Departmental stores
 These are generally located in the hot/ centre of the
city which caters to a large number of public.
 They try to provide Maximum services to high class of
customers when the Prices are secondary.
 The modern Departmental stores provide all facilities
such as travel enquiry, rest rooms, information bureau,
and restaurant etc.
 Departmental stores combines both the function of
retailing as well as warehousing. Purchase of these
stores are done directly with producer itself an operate
separate warehouse.
Advantages of Departmental Stores
 A departmental store purchases its merchandise in
large quantity thereby enjoying the economies in price,
transportation cost and trade discounts etc.
 The customer can select the goods of their own choice
and taste from a large variety of goods of different
quality and brands.
 Departmental stores are usually situated in crowded
and central places of the city which attracts many
customers thereby increasing the sales.
 On account of large volumes of sales, selling cost per
units becomes very low.
Limitations of Departmental stores
 Large amount of capital is require to operate
Departmental store. The business entrepreneurs having
limited capital cannot operate Departmental stores.
 Departmental stores are difficult to efficiently manage
and run smoothly. Very efficient, skilled and able
manager is needed. Otherwise, it becomes impossible
to operate Departmental stores.
 Departmental stores are not capable of conducting all
types of retail businesses. They supply certain varieties
of goods. It is physically impossible for them to supply
all varieties or kinds of goods
CHAIN STORES OR MUTIPLE SHOPS
Chain stores or Multiple shops are networks of

retail shops that are owned and operated by
Manufacturers or Intermediaries.
For Example:- Wal-mart

Home depot
Nike
Big Bazzar
Features of Chain stores or Multiple shops
 They operate under Centralized control and are
Horizontally integrated.
 The layout of these shops is simple and similar.
 The main objective of the Multiple shops is to establish

direct contact with the consumers by eliminating
middlemen.
 Multiple shops or chain shops specialise in one or two

Articles. The articles are sold by all the similar shops
charging uniform price.
Advantages of Chain stores or Multiple
shops
 They avail the advantages of bulk purchasing.
 They have the benefits of specialisation in a particular
type of product.
 If one branch has short supplies, then it can be
immediately replenished from another branch in the
same or Adjacent area.
 Since branches get their supplies from the head office
as per their requirements, there is no fear of over-
stocking of goods.
Limitations of Chain stores or Multiple
shops
 If there are many branches, Managing all of
them properly becomes difficult.
 A multiple store provides buyers with limited
choice as it deals in one particular line of
goods.
 There is fear of dead stock as supplies of goods
cannot just immediately be adjusted with the
changes in demand for the same.
Differences between Departmental stores
and Multiple shops
 Departmental stores offer variety of products,
whereas, Multiple shops only sell limited goods.
 Departmental stores sell both on cash and credit,
whereas, multiple shops sell goods on cash basis
only.
 Operating expenses of departmental stores are
higher as compared to the multiple shops.
 Departmental stores sell product produced by
different manufacturers. Multiple shops usually
deal in the product of one manufacturer.

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FIXED SHOPS- LARGE

• Mail order Business House

• Consumer Co-operative stores

For Example: Spencer, Chennai

Chain stores or Multiple shops are networks of

For Example:- Wal-mart

 The layout of these shops is simple and similar.

 The main objective of the Multiple shops is to establish

 Multiple shops or chain shops specialise in one or two

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