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Quality Products
The shops can give customers good quality branded products and value 
for money paid by them. 
e) 
Elimination of bad debts
The shops are run on cash basis. Hence, the possibility for bad debts 
does not arise. 
f) 
Economical Operations
The operational costs and overheads are less than compared with 
departmental stores. Hence, multiple shops are economical in their 
operation.
g) 
Flexibility
Multiple shops are flexible in nature, shops may be opened in promising 
areas and unprofitable branches may be closed down by transfering stock 
to the nearby branches. 
h) 
Transfer of Stocks
If any branch at any time runs short of stock and if there is no possibility 
to get the stock from Head Office at a short notice, it can get the required 
stock from the nearby branch by transfer.
i) 
No Middlemen
Since the Head office purchases goods directly from the manufactures, 
middlemen are eliminated and consumers are in a position to get the 
products at a reasonable price. 
j) 
No Heavy Rent
Since these shops need not be located at central places, the rent is also 
reasonably cheap. Hence, the shops need not spend huge sums of money 
on rent. 
k) 
Personal Touch
Since the Manager of the branch is always available to the customers, he 
can look into customers complaints and develop personal contacts with 
them which is highly required for successful conduct of the business. 


90
Disadvantages of Multiple Shops 
Multiple Shops suffer from the following disadvantages. 
a) 
Lack of Interest
Since the multiple shops make use of services of paid employees and do 
not get any share in profits, they show less interest in the sales of goods.
They may not exhibit the desired salesman shop to effect sales. 
b) 
Limited Sales
Since no credit sale is allowed in multiple shop system, the sales are 
limited. It is evident that for the success of business credit is inevitable 
which is lacking in this system. 
c) 

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