Microsoft Word marketing doc

High Cost of Operation 
: Since the departmental store is located in busy 
centres, it has to pay heavy rent for buildings, extensive advertising is 
undertaken, high salaries are to be paid to expert staff and also to be 
incurred expenditure on recreation facilities to the customers etc., which 
all increase the overhead costs of departmental stores. 
3.
High Prices 
: It incurs high operational costs and to recover the 
expenditure, the goods are to be sold at higher prices. 
4.
Lack of personal contacts 
: The personal contacts between the 
customer and the owners of the store is completely absent. 
5.
Distance from place of Residence 
: It is located at a central place of the 
town and people residing far away from stores prefer to purchase their 
required goods from nearby shops only. 
6.
High Risk 
: Since departmental store carries huge stocks in one 
building, the extent of risk is considered to be very high. It is because of 
the loss due to fire, price fluctuations and change in fashions which result 
in heavy losses to the stores. 
7.
No Credit Sales 
: Normally, in departmental stores only cash sales are 
entertained which will result in low sales. 
8.
Lack of Interest 
: Paid servants do not get any share in profit which 
result they do not show much interest in developing the business of 
departmental stores. 
9.
Difficulty of Supervision 
: Due to many number of departments, which 
creates problem of effective supervision and control over the work of the 
staff of different departments. 
B) 
Multiple Shops
: 
Multiple shop refers to an organisation under which a large number of 
similar shops are opened at different places in one particular area or 
throughout the country under a centralised management and dealing in 
similar lines of goods. Multiple shops are popularly found in European 
countries and the U.S.A. In U.S.A. the multiple shops are called as 
“Chain Stores”.