Difference between Departmental Stores and Multiple Shops

The upcoming discussion will update you about the difference between departmental stores and multiple shops.

Difference between Departmental Stores and Multiple Shops

Departmental Stores

1. Departmental stores provide the widest variety of products under one roof to satisfy the diverse requirements of the custo­mers.

2. On account of non-business services to the customers, their prices are higher than those charged by their competitors.

3. Departmental stores sell products manufactured by various firms.

4. Departmental stores have to bear greater busi­ness risks as the goods are sold at one market place only. Slow-selling or uneconomi­cal department is difficult to be closed down.

5. The sales policy may vary from department to department as the products dealt in are different.

6. Each department is decora­ted differently depending on the products dealt in.

7. Attach importance to the customers’ needs and con­venience and provide per­sonal service.

8. Departmental store advertises itself and its products restricted to lo­cal areas as the consumers are mostly local.

Multiple Shops

1. Multiple shops specialise in a limited range of merchandise and cannot satisfy all custo­mers.

2. In absence of any non­-business services to the customers, the prices are generally lower than other retail organisations.

3. Multiple shops sell only one or same products manufactured by a firm.

4. Face minimum risks as the goods are sold through different shops in differ­ent market places. Slow-selling or uneconomi­cal shop may even be closed down.

5. A uniform policy of sales is maintained in all cons­tituent shops.

6. Each shop is decorated in the same setting and style.

7. Multiple shops promote decentralisation of selling without any concern for personal service.

8. Multiple shops organise advertising campaigns on either regional or national or basis as the customer are scattered.