Meaning of multiple shops/Chain stores
Multiple shops or chain stores were developed in order to efficient operation of retail shop and minimize wastage in distribution process. The retail shop known as multiple shops in England or European countries are called chain stores in America.
Multiple shops or chain stores are retail business establishment. Many shops are operated in certain region or all over the country to sell same types of goods. They are operated under the ownership, management and control of single business firm.Even though many retail stores are operated in different parts, their names, types of goods, method of display or decoration, etc. are same. Similarity and uniformity is found in all such shops. The customers become confident that the goods they buy in one shop are the same in quality, durability and prices of the goods found in other stores of this kind. The main purpose of operating such store is to sell goods directly to consumers by producers and eliminate middlemen.
Features of multiple shops / chain stores
The features of multiple shops or chain stores can be mentioned as follows:
1. Central ownership and control
Multiple shops or chain stores are operated under the single management, control and ownership of central business firm. Such stores are operated in different parts of cities, regions and country. Sales managers are appointed to each store and given responsibility to handle their respective store strictly abiding by the central policy and direction.
2. Uniformity in price and cash sales
Same or uniform price is fixed for same type of goods in multiple shops at different places. Goods are sold for hand cash.
3. Buying and selling policy
If a manufacturer has established multiple shops to sell his products, he opens same type of shops in different places. But, if other middlemen establish and operate multiple shops, they adopt centralized purchasing and decentralized selling policy. Central office purchases large quantity of goods and sends to different stores for selling.
4. Limited range of products
All the multiple shops operated in different places sell only one type or limited types of products. The products sold out by all these shops are same in quality, quantity, shape, size etc.
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5. Uniformity
Multiple shops or chain stores maintain uniformity in display, decoration and operation.
6. Standardized goods
Same type of standardized goods can be found in multiple shops. Mostly, this type of shops sell standardized goods.
