Discuss the features of a departmental store. How are they different from multiple shops or chain stores.
Answers
Answer:
The features of a departmental store are as follows :
(1) Availability of all kinds of goods :
It is the main objective and effort of a departmental Store to cater all requirements of human beings at a single place. The commodities from a needle to motor car is available here.
(2) Many departments :
There are number of department in a single shop. These apartments are independent and single type of product is sold in each department. For example government department medicine department, departmental leather goods, department of eatables etc.
(3) Centralised Management :
A seller of each department runs independently its own department but a single institution managers , controls and has ownership on all departments.
(4) Free Control :
Each department runs itself. It has a manager who exercise the control on his department.
(5) Service Towards Customers :
Special attention is given on the buyers convenience. For example credit facility , means of recreation, delivery of goods at home and other facilities like telephone, postal facility etc.
(6) Large Scale Business :
The departmental stores established on large scale because it is divided in several departments and each department is a perfect unit in itself.
Difference between departmental stores and multiple shops or chain stores :
DEPARTMENTAL STORE :
(1) Meeting the requirements :
The departmental Store caters the need of customers at the same place.
(2) Prices of commodities :
Prices of commodities always remain higher than the market price.
(3) Credit facilities :
Cash and credit both ways the sale is made in this departmental Stores.
(4) Accounts :
Each department prepare profit and loss account and journal separately.
(5) Convenience of customers :
Convenience to the customer is given special under the system of departmental Store.
(6) Scope :
Promotion and profit scope is confined.
(7) Marketing :
An Advertisement relating to local customers is given.
(8) Departmental distribution :
There are several sub departments of a single department.
(9) Management system :
Management is made on the basis of joint stock companies.
(10) Risk :
It has more risk because it has to continue all departments even if there is loss in any department.
(11) Particularity of location :
These are located at any particular place and attract the customers towards Store.
(12) Commodities :
These hold the commodities mainly used by the affluent class.
MULTIPLE SHOPS :
(1) Meeting the requirements :
These shops specialise in a particular line of goods. Same type of goods are sold in each shop.
(2) Prices of commodities :
Price of community are lower than the market price.
(3) Credit facilities :
Credit facilities are not given on account of, only cash sale done.
(4) Accounts :
A collective profit and loss account and journal is prepared for all shops.
(5) Convenience of customers :
There is no such system under this pattern of sale.
(6) Scope :
Promotion and profit scope extended because capital can be employed at different locations.
(7) Marketing :
Advertisement is made at National level
(8) Departmental distribution :
Such division is not made under this mode of sale.
(9) Management system :
Management is made on the basis of management system for the branches.
(10) Risk :
if any shop suffers from considerable loss,it can be closed.
(11) Particularity of location :
Spreaded in several places of market, they try to be nearer to the customer.
(12) Commodities :
These generally sell the commodities of common man's use.
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