Difference Between Departmental Store And Multiple Shops
The major dissimilarities or difference between departmental store and multiple shop can be described as follows:
1. Introduction
Departmental Store: A form of retailing institution that deals with wide variety of products (all kinds of products) under single roof.
Multiple Shops: A type of retailing institution that consists number of stores (shops) in different locations with same name and same type of products under single management.
2. Product Variety
Departmental Store: It deals with wide variety of products. It sells almost all types of products.
Multiple Shops: It deals with limited type of products
3. Operational Area
Departmental Store: It is situated at central location and crowded areas.
Multiple Shops: It is located in the different parts of city or town
4. Operating Cost
Departmental Store: It requires large amount of money to establish and operate departmental store.
Multiple Shops: It requires relatively less money to operate multiple shops
5. Price Of Products
Departmental Store: Generally, price of products are high because of high operating costs
Multiple Shops: Prices are low because of less operating costs and elimination of intermediaries.
6. Credit Facility
Departmental Store: It provides credit facility to regular and loyal customers.
Multiple Shops: No such facility is given to customers
7. After Sales Services
Departmental Store: After sales service, installation service and other services are provided.
Multiple Shops: No such services are provided
8. Risk Involved
Departmental Store: It involves higher risk than multiple shops. Loss of one department cannot be fulfilled by the profit of another department.
Multiple Shops: It is less riskier than departmental store. Risk of one store can be recovered by the profit of another store or shop.
9. Division
Departmental Store: It is divided into several departments according to the type and nature of products.
Multiple Shops: It is a single store and there is no division into different departments.
10. Management
Departmental Store: Proper coordination, cooperation , management and control is possible because it is operated under a single roof
Multiple Shops: It is very complex and difficult to manage and control because shops are scattered at different places.
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11. Types Of Customers
Departmental Store: Rich and high class customers are attracted towards the departmental store.
Multiple Shop: Low and middle income groups and local people are the main customers of multiple shops.
Departmental Store Vs Multiple Shops (Comparison Chart)
I hope this post is helpful to understand the difference between departmental store and multiple shops and to make comparison between them.
Departmental Store Vs Multiple Shops (Comparison Chart)
Basis
|
Departmental Store
|
Multiple Shops
|
Introduction
|
Retail institution that deals with all kinds of products under a single building
|
Retail institution with number of shops in different locations
|
Product Variety
|
Wide Variety
|
Limited
|
Operational Area
|
Central location
|
Difference locations
|
Operating Cost
|
High
|
Less
|
Product Price
|
High
|
Low
|
Credit Facility
|
Yes
|
No
|
After Sales Service
|
Yes
|
No
|
Risk Involved
|
High
|
Low
|
Divisions
|
Yes
|
|
Easy
|
Difficult
|
|
Customers
|
High Class
|
Middle Class
|
I hope this post is helpful to understand the difference between departmental store and multiple shops and to make comparison between them.
