There are some drawbacks or disadvantages of multiple shop/chain store such as requirement of huge capital, limited products, inefficient employees, lack of initiative, lack of freedom etc.
The disadvantages of multiple shops or chain stores can be described as follows:
The disadvantages of multiple shops or chain stores can be described as follows:
1. More capital required
More capital needs to invest in multiple shops to establish and operate them in different parts of the country. So, most of the producers cannot use this method to sell their products.
2. Limited range of products
Multiple shops sell only one or some limited kinds of products. Such shops cannot satisfy all the needs of consumers. So, the consumers are found less interest in and unconcerned with multiple shops.
3. Problem of efficient staff
It becomes difficult to select, appoint, control and give responsibility to the employees in multiple shops. The more number of shops increases the more difficulties appears in the operation of multiple shops. Efficient employees cannot be found everywhere.
4. Lack of initiative
The employees working in multiple shops do not care for the sales and satisfaction of customers. They are given certain salary but not bonus, profit or other facilities. So, they do not take personal initiative in their works, nor are they interested in business. Therefore, lack of initiative is also the major disadvantage of multiple shop or chain stores.
5. Problem to customers
Customers have to face several problems and difficulties in multiple shops. There can not be found selection facility, staff do not pay proper attention to customers and they do not behave customers as a salesperson should do, they do not provide credit facility, nor do they provide home delivery facility.
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6. Lack of freedom
Managers and other staff working under multiple shops do not get necessary freedom in operating of their respective shop. They should act according to the direction, order and under the control of central office. As a result, they cannot adopt free policy to operate their shops according to the local needs and situation to increase sales.
