The main advantages of chain or multiple stores may be explained as under:
- Advantages of Large Scale Production.
- Need for Minimum Stock.
- Economy in Advertising.
- Lower Selling Price.
- Ability to Spread Risk.
- Speedy Turnover.
- No-Risk of Bad Debts.
- Efficient Management.
What is a distinctive advantage of a multiple chain store?
1. Low operating cost : A chain store does not have to incur heavy expenditure on rent, customer services and advertising. 2. Economies of scale : They are able to purchase goods at cheaper rates due to centralised buying.
What is multiple shops and discuss its advantages and disadvantages?
(i) A multiple store provides buyers with limited choice as it deals in one particular line of goods. (ii) There is a lack of personal contact with customers. (iii) If there are many branches, managing all of them properly becomes and standardised products are difficult. (iv) Branch managers have limited powers.
What are the limitations of multiple shops?
What are the limitations of multiple shops?
- Limited selection of goods : These stores sell range of goods produced in their organisations only.
- Lack pf personal touch : Sometimes, indifferences and lack of personal touch arise in the employees due to lack of incentives.
What are the characteristics of a multiple chain store?
Following are the most characteristics of chain stores or multiple shops:
- Large Scale Retailing. It is basically a system of large scale retailing.
- Approaching the Customer.
- Same Lines of Products.
- Convenience Goods.
- Specialization.
- Standardization.
- Uniformity.
- One Ownership.
What are the advantages of a chain store?
A multiple or chain store consists of a number of similar shops owned by a single business firm. 1. Advantages of Large Scale Production Since a large number of multiple or chain stores are established at various places, goods are produced or purchased by the central office of these shops at very large scale.
What are the advantages of having multiple stores?
Advantages Of Multiple Shops Or Chain Stores. Buying economy, large volume of sales, no middlemen, low operating costs, division of risk, research facility are the main benefits of multiple shops or chain stores.
What makes a chain store or multiple shop?
Chain stores or multiple shops is a retail organization composed of two or more retail stores, owned by and operated under one management. A chain store is the number of retail stores operating under common ownership and management constitutes a chain. 1. Large Scale Retailing
Why are there so many shops in a store?
Multiple shops or chain stores were developed in order to efficient operation of retail shop and minimize wastage in distribution process. The retail shop known as multiple shops in England or European countries are called chain stores in America.
