4. Advantages of Multiple Shop System:

  • Advantages of Multiple Shop System: The multiple shop system has the following advantages:
  • Rapidity in Turnover: ADVERTISEMENTS:
  • Stock Adjustments or Transfers:
  • Common Advertising:
  • Elimination of Bad Debts:
  • Operational Economy:
  • Low Prices:

    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.

    Why do multiple shops have lower cost of business?

    The advantages of multiple shops are as follows : Low cost: These shops have low operational cost because of centralized purchasing and promotion of sales. Diffusion of risk: The total risk of an organisation is reduced as the losses incurred by one shop are covered by the profits made in the other shop.

    What are the limitations of multiple shops?

    The disadvantages of multiple shops or chain stores can be described as follows:

    • More capital required.
    • Limited range of products.
    • Problem of efficient staff.
    • Lack of initiative.
    • Problem to customers.
    • Lack of freedom.

      What are the characteristics of a multiple chain store?

      Following are the most characteristics of chain stores or multiple shops:

      1. Large Scale Retailing. It is basically a system of large scale retailing.
      2. Approaching the Customer.
      3. Same Lines of Products.
      4. Convenience Goods.
      5. Specialization.
      6. Standardization.
      7. Uniformity.
      8. One Ownership.

      What is the difference between a department store and a multiple?

      Departmental stores offer variety of products to consumers; multiple shops sell only limited i.e. one or two lines of goods. (ii) Location: Departmental stores are centrally located and attract more customers, whereas multiple shops are scattered throughout the city and try to reach near to the customers.

      How multiple shops eliminate Middlemens?

      By selling directly to the consumers, the multiple-shop organisation is able to eliminate unnecessary middlemen in the sale of goods and services.

      What is chain store explain characteristics?

      Chain stores are defined as follows: A chain store system consists of a number of retail stores, which sell similar products, are centrally owned and operated under one management. An organization owning a controlling interest in two or more establishments which sell substantially similar merchandise at retail prices.

      What is multi chain stores?

      Chain stores are also known as multiple shops which function under one brand and have common ownership. This is branches or outlets of a single brand that are spread across the country. These type of shops were first established in America and now have become popular all over the world.