What are the different between Multiple Shops and Departmental Store?

The different between Multiple Shops and Departmental Store?

A departmental store is a large scale retail organisation having a number of departments under one roof. All the departments are under unified control and management. Both departmental store and multiple shops are organized as limited companies. Yet a number of differences exist between these two retail establishments. These differences are:

Multiple Shops:

  • It is established as a joint stock company.
  • Both sellers and producers denote same person.
  • It consists of a number of departments located at different places.
  • These are established by producers to sell their own products without the help of middlemen.
  • It deals in a particular product.
  • It is found in almost all places of cities and towns.
  • The basis of sale is cash sale.
  • It does not encourage home delivery system.
  • A small or standard size building is necessary for multiple shop.
  • Operating expenses are reasonable.
  • It requires limited stock.

Departmental Store:

  • It is established as a Joint Stock Company.
  • Both producers and sellers are different persons.
  • It consists of a number of department located under the same roof.
  • There are established by the sellers who purchase from various sources and sell through departmental store.
  • It deals in a wide variety of products.
  • it is found in central place of big cities and towns.
  • The basis of sale is both cash and credit sale.
  • It encourages home delivery system.
  • Huge premises and vast floor area in needed for a departmental store.
  • Operating expenses are too heavy.
  • It requires large amount of stocks.