Difference between Departmental Stores and Multiple Shops - QS Study
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Difference between Departmental stores and Multiple shops

Although both these types of retail organizations are large establishments, there are certain differences between the two. Such differences are given here below:

Departmental stores

  • Location: A departmental store is located at a central place, where a large number of customers can be attracted to it.
  • Range of products: Departmental stores aim at satisfying all the needs of customers under one roof. As such, they have to carry a variety of products of different types.
  • Services offered: The departmental stores lay great emphasis on providing maximum service to their customers. Some of the services, provided by them include post office, restaurant and so on.
  • Pricing: The departmental stores, however, do not have uniform pricing policy for all the departments; rather they have to occasionally offer discounts on certain products and varieties to clear their stock.
  • Class of customers: The departmental stores cater to the needs of relatively high income group of customers who care more for the services provided rather than the prices of the product.
  • Credit facilities: The departmental stores may provide credit facilities to some of their regular customers.
  • Flexibility: As the departmental stores deal in a wide variety of products, they have certain flexibility in respect of the line of goods marketed.

 

Multiple shops

  • Location: The multiple stores are located at a number of places for approaching a large number of customers. Thus, central location is not necessary for a multiple shop.
  • Range of products: The multiple stores aim to satisfy the requirements of customers relating to a specified range of their products only.
  • Services offered: The multiple shops provide very limited service confined to guarantees and repairs if the sold out goods turn out to be defective.
  • Pricing: The multiple shop chains sell goods at fixed prices and maintain uniform pricing policies for all the shops.
  • Class of customers: The multiple shops, on the other hand, cater to different types of customers, including those belonging to the lower income groups, who are interested in buying quality goods at reasonable prices.
  • Credit facilities: All sales in the multiple shops are made strictly on cash basis.
  • Flexibility: there is not much scope for flexibility in the chain stores, which deal only in limited line of products.