It can be concluded that chain stores or multiple shops are a large scale retail organization. But A Departmental Store purchases the goods in bulk quantity. It increases the bargaining power of the store. Manufacturers allow heavy discount to the Departmental Stores.
Difference between Departmental Store and Chain Store
Following are the top differences between a departmental store and a chain store:
1. Nature of Goods Dealt with
A Departmental Store deals with a large number of goods in a large variety.
Multiple shops or chain stores deal in the goods of one manufacturer only.
2. Prices of Goods
Prices of goods are generally higher than market prices at departmental stores.
Prices of goods are kept comparatively low at chain stores or multiple shops.
Related: 21 Advantages and Disadvantages of Chain or Multiple Stores.
3. Credit Facility
A Departmental Store sells goods both for cash and credit.
Chain stores sale only on cash payment.
4. The Facility of Home Delivery
A Departmental store sometimes provides the facility of home delivery.
Chain stores do not provide the facility of home delivery.
5. Other Facilities to Customers
Many other facilities are also provided to customers by a Departmental Store, like postage and telegram, telephone, restaurant, toilet, etc.
No such facility is provided by chain stores or multiple shops.
Related: Top 17 Advantages and Disadvantages of Departmental Stores.
6. Location
A Departmental Store is located at Central Place of a city.
Chain stores located at various places and or various cities of the country.
7. Utility
Departmental Store is considered to be useful only for rich people.
Chain stores for multiple to be useful both for poor people and the middle class.
8. Risk
It involves higher risk.
It involves a lesser risk.
Related: How Chain Stores are Managed and Organized? Explained.
9. Purchase of Goods
Every department is independent in making its purchases.
All the stores are supplied with goods from the central office.
10. Decoration and Display
Decoration and display of All the departments are different decoration.
Decoration and display of all the chain stores are exactly similar.
Related: 19 Factors Influencing Entrepreneurship Development.
11. Main Object
The main object of a Departmental Store is to make all the goods of daily use available under one roof.
The main object of multiple shops or chain stores is to distribute the goods of a manufacturer at all the places. What is the difference between a department store and a shopping mall?.
Thus, now you know the difference between departmental store and chain store.
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