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.
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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.