Introduction
Departmental stores and multiple shops are both large-scale retail shops. However they are different from one another according to their nature, location, services, price of goods, credit facility etc. Departmental store refers to a large retail showroom that offers wide variety of consumer goods across different departments on the same premises. On the other hand, multiple shops refer to a series of retail outlets owned, managed and controlled by a single firm.
Difference Between Departmental Stores And Multiple Shops
The main differences between them can be presented as follows:
The main differences between them can be presented as follows:
1. Meaning
Departmental stores are large retail stores that offer wide range of consumer goods (such as groceries, clothing, furnishings etc.) through different departments in the same building. On the contrary, multiple shops are retail outlets operated in different locations but owned and operated by the same company.
2. Nature and volume of goods
Varieties of goods are sold out by departmental stores. Only one or few types of goods are sold out by multiple shops.
2. Nature and volume of goods
Varieties of goods are sold out by departmental stores. Only one or few types of goods are sold out by multiple shops.
3. Location
Departmental stores are generally established in the center of cities. Many multiple shops are operated in many places in cities, and in different parts of the country so that the shops may be within the reach of consumers.
4. Price of goods
Price of goods are relatively high in departmental stores. Price of goods in multiple shops becomes lower than in departmental stores, because multiple shops become able to eliminate middlemen.
5. Free services
Departmental stores provide different services free of charge due to which cost increases. Multiple shops do not provide free services.
6. Credit facility
Along with cash sales, departmental stores also provide credit facility. Multiple shops sell goods only for hand cash.
Along with cash sales, departmental stores also provide credit facility. Multiple shops sell goods only for hand cash.
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7. Departmental division
Departmental store is divided in different departments. Multiple shops are not divided in different departments.
8. Nature of decoration
Departmental stores are decorated in and out but no uniformity is found in decoration and display of goods. Multiple shops are decorated and goods are displayed in uniform manner in all places.
9. Risk
Departmental store is more riskier because it is operated from a single outlet. But in multiple shops loss of one store can be recovered from the profit of other outlets.
Departmental Stores Vs Multiple Shops (Comparison Table)
|
Basis |
Departmental Stores |
Multiple Shops |
|
Product Range |
Wide range |
Limited range |
|
Location |
Urban areas |
Various locations |
|
Price |
Higher prices |
Lower prices |
|
Free Services |
Yes |
No |
|
Risk |
High |
Less |
|
Customers |
High income group |
All types |
|
Flexible |
Yes |
No |