Advantages Of Departmental Stores

Departmental stores are large scale retail institutions which offer wide varieties of products in the single building. There are some advantages of departmental stores such as bulk buying, home delivery service, purchase facility etc.

The main merits or advantages of departmental stores are as follows:

1. Bulk buying

Departmental stores buy goods in large quantity from producers. As a result, they get quality goods at low price. They can also take help of specialist in buying goods. Those having strong financial position can buy goods in large quantity due to which per unit price and transport cost also falls low.

2. Purchase facility to consumers

As all the goods of consumers needs are found at departmental stores at the same place, the customers need not have to walk from shop to shop to buy goods. Generally, departmental stores are located in the center of city, they feel easy to come to or go back home.

                          Also Read: Disadvantages Of Departmental Store

3. Service to customers

Customers service is another advantage of departmental stores. Departmental stores provide free service to their customers. They provide credit facility and home delivery service. If any customers wanted to return any goods, departmental stores accept them, they provide repair and maintenance services. They also provide cafeteria, telephone, mail etc. services to customers.

4. Economy in advertisement

Departmental stores make effective a well as attractive advertisements taking help of specialists. Each department also advertises goods by attractively displaying and decorating shop. The departments do not need to spend on advertising goods, as a result cost for advertisement becomes automatically low.

                            Also Read: Methods Of Operation Of Departmental Store

5. Ability to bear loss

In comparison to other retailing institutions, departmental stores can have more ability to bear loss. In case any one or two departments got loss in business, the profits earned by other departments can easily compensate the loss. The financial position of departmental store becomes stronger than of other retailing institutions.

6. Research

Departmental stores can carry out study and researches of different sectors. As a result, effectiveness comes in its operation with minimum cost and the profit increases.


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