[PDF Notes] What are the advantages departmental store?

A departmental store offers the following advantages:

1. Convenience in shopping:

A departmental store enables the customers to purchase all their requirements under one roof. They need not move from one shop to another for making purchases. Their time and labour are saved.

2. Wide choice:

A wide variety of goods are available to customers. They can make better selection of goods from different designs, styles, brands, etc. The quality of goods is also assured.

3. Economies of large scale:

There are several economies due to bulk buying and centralised administration. The transportation and selling costs per unit are low because the volume of sales is large. Economies of scale help to reduce costs and increase .profits.

4. Central location:

A departmental store is generally located in the heart of the city. It is easily accessible to customers and it can attract customers from all over the city.

5. Services:

Customers get several facilities e.g., restaurant, recreation, reading room, post office, banking, etc., free of cost. These facilities make shopping a pleasure. Some departmental stores also offer credit and home delivery services to customers.

6. Economy in advertising:

Customers entering a departmental store are attracted by attracĀ­tive layout and open display of goods. One department serves as an advertisement for other departments. Such mutual advertising helps in increasing sales turnover.

7. Efficient management:

A departmental store can employ high skilled and experienced managers. These experts help to improve the efficiency of operations. A departmental store can also spend huge amount of money on sales promotion. The performance of each department can be separately evaluated.

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