Discuss the features of a departmental store. How are they different from multiple shops or chain stores?

Explanation

Department stores are basically large, fixed establishments that deal in a wide variety of products. The following points highlight the features of a department store:


(a) Central locations:
Department stores are generally located in central areas so as to attract a large number of customers.


(b) Defined hierarchy:
The management in department stores follows the same hierarchy that is generally followed in any joint stock company. That is, the top management consists of a board of directors, with the managing director, the general manager and the department managers under it in that order.


(c) Absence of middlemen:
Department stores purchase goods directly from manufacturers and sell them to customers. Thus, they eliminate the role of middlemen.


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