Tuesday, 29 March 2022

Type of large fixed stores

 






The large retailers have their permanent establishment and dealing with large consumers are known as fixed large stores. These retailers are popular due to liberalization, urbanization, modernization, and several reasons. Large retailers are known for selling goods and services to consumers by using multiple distribution chains with one common reason for earning maximum profits. Mostly the consumers of cities have desires to shop from these stores such as supermarkets, multi complexes, malls, and many more. Lets us discuss the most common forms of large scales retailers that are following


Departmental stores 


A departmental store is one of the largest retail stores. It offers a wide variety of products and is classified into a well-defined department. The aim of departmental stores is satisfying possible every customer’s needs under one roof. It has a large number of departments and each one is confining its activities to one kind of product. There are several illustrations, they may have a separate department for medicines, toiletries, furniture, groceries, electronics, clothing, many types of materials in store. They can satisfy diverse market demands by providing a wide variety of goods and services. They have some important features of departmental store which are following. 


A modern area departmental store may offer several facilities such as restaurants, travel and informational bureau, restroom, telephone, and many more. These departmental stores try to provide maximum services to their high profile customers for whom price is a secondary matter. 

Mostly these stores establish in the central part of the city, which attract a large number of customers. 

The size of these stores is very large because they provide many services. Generally, they are part of large businesses and operate and manage by general managers and several departmental managers. 

Departmental stores are providing not only a retailer but also wholesaler services. They purchase directly from manufacturers and distribute different their stores. That way they resolve the middleman between the producers and customers. 

Advantages of departmental stores 


There are several advantages of retailers through departmental stores which are listed below. 


Attracting a large number of consumers 


Generally, the departmental stores are located in central places of cities. And they provide a variety of products under one roof due for this reason consumers do not need to go to different stores for different products. These are the most common reason for attracting a large number of consumers. 


Variety of choices 


Departmental stores offering a large variety of products under one roof is one of the most important advantages. They provide great convenience to consumers in buying all required products in a department. Due to this consumers do not need to run place to another place for completing their shopping. 


Attractive services 


The departmental store aims to provide maximum services to consumers. Large departments provide services like home delivery of goods, execution of telephone orders of regular customers, credit facilities, restaurants, saloons, and many more. 


Large scale operation 


The departmental stores are operating at a large scale. These stores buy goods in bulk and provide an attractive discount. In return, the consumers get their goods at lower prices. 


Disadvantages of departmental stores 


Every business has some advantages and disadvantages as well. So there are several disadvantages of departmental stores which are listed below.


Lack of customer attention 


The departmental stores are failing in establishing personal contact with the consumers. These stores are operated by employees who do not pay attention to department consumers. These stores are operating on a large scale so it is difficult to give attention to every consumer. 


Heavy operating cost 


These stores mainly focus on providing more services due to the operating cost tend to be higher side. If the operating cost is high then the price of goods will also high. That will affect the business some time badly. 


Unsustainable location


Mostly these departments are located in the central location of the city. It is not convenient the purchase goods that need immediately. 


Multiple shops


These types of stores of retailer’s shops are owned and operated by the manufacturers. Multiple shops normally deal in standardized and branded consumers products. These stores are established in different localities with similar appearances like Bata, Puma, and many more. Multiple stores are running and operating by the same organization and have had an identical merchandising strategy, with identical products and displays. Some of the common features of the multiple stores are described below. 


These shops are mostly located in populous localities. The purpose of multiple stores aims to attract a sufficient number of consumers. The idea of serving the consumers at the nearest point to their residences, rather than attracting them to central places. 

These multiple shops are centralized at the head office, from where the goods are dispatched to each store according to their requirement. This process helps in saving middle man costs. 

Every store is under the supervision of a branch manager, who is held responsible for daily activities. 

The prices of goods of all such shops are fixed and all sales in deal in cash. The daily collect cash is deposited into the local bank account on behalf of the head office. And daily reports are sent to the head office. 

The head office appoints inspectors, who are concerned with day to day activity of shops. 

Advantages of multiple shops 


These stores offer various advantages to consumers that are listed below.


These stores are selling directly to consumers. Multiple stores can eliminate the unnecessary middleman in the sale of goods and services.

There is no fear of bad debts because all sales are made on a cash basis.

If any product is not in demand in the particular locality may be transferred to another area where it is in demand. This will help in reducing the dead stock in these shops. 

The losses of one shop may be covered by profits in the other shops, this will help in reducing the total risk of an organization.     

 


 


  


 

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