Question

Differentiate between a Departmental Store and the multiple shops.....

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Answer 1

Answer:

Departmental stores offer variety of products to consumers; multiple shops sell only limited i.e. one or two lines of goods. (ii) Location: Departmental stores are centrally located and attract more customers, whereas multiple shops are scattered throughout the city and try to reach near to the customers.

Answer 2

Answer:

diffrentiate between a department al stor and the multipal shop

Explanation:

Multiple Shops!

(i) Variety of Products:

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Departmental stores offer variety of products to consumers; multiple shops sell only limited i.e. one or two lines of goods.

(ii) Location:

Departmental stores are centrally located and attract more customers, whereas multiple shops are scattered throughout the city and try to reach near to the customers.

(iii) Services:

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Departmental stores provide different type of services to their customers viz; free home delivery, after sales services, and recreational facilities etc. But multiple shops do not extend such services.

(iv) Basis of Sale:

Departmental stores sell both on cash and credit basis whereas multiple shops sell goods on cash basis only.

(v) Pricing:

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There is uniformity in charging prices by different branches of a multiple shop. But different departmental stores may charge different price for the same product.

(vi) Risk:

The departmental stores are confronted with greater business risks as they sell goods at one place or under one roof. The risks are considerably reduced on account of different branches of a multiple shop.

(vii) Advertising:

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The departmental stores advertise on local basis covering lesser area. On the other hand, multiple shops are widely scattered thereby covering large area.

(viii) Control and Co-Ordination:

Better managerial control and co-ordination can be ensured in the case of departmental stores as the staff work at one place. In case of multiple shops, it cannot be achieved properly as the workers employed in different branches at different places.

(ix) Operating expenses:

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Operating expenses of departmental stores are higher as compared to the multiple shops.

(x) Layout and design:

Departmental stores lay more emphasis on window dressing and internal decoration in order to attract the customers. Multiple shops on the other hand, have simple and uniform layout undertaken by all the branches of the shop.

(xi) Products of One or Of Different Manufacturers:

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Departmental stores sell product produced by different manufacturers. Multiple shops usually deal in the products of one manufacturer.

(xii) Adjustment of Losses:

In case of departmental stores, losses cannot be easily set off against the past profits. In case of multiple shops losses suffered by one branch can be easily set off against the profits earned by other branches.