DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A. Srinivas Kumar
Designation : Senior lecturer
Branch : Commercial and computer Practice
Institution : Government polytechnic
for women, Nandigama.
Year/ semestar : 1st year
Subject code : CCP -104
Topic : Distribution network
Duration : 50 Mts.
Sub topic : Distinction between Departmental
Stores and Multiple Shops

CCP104.89 1
Objectives

After completion of period, you would be

able to

Distinguish between Departmental Stores and

Multiple Stores

CCP104.89 2
Recap

So far, you have learnt :

-- Multiple shops
-- Features of Multiple shops
-- Merits and demerits of Multiple shops

CCP104.89 3
Points of difference
1. Location
2. Variety of goods
3. Convenience and equality
4. Price
5. Economies of scale
6. Flexibility
7. Advertisement

CCP104.89 4
Points of difference
1. Size
2. Production Vs. Assembly of Goods
3. Huge stock
4. Customers class
5. Cash or credit
6. Control
7. Layout/Display

CCP104.89 5
Differences between Departmental
Stores and Multiple Stores
Departmental Stores Multiple Stores

1. It is centrally located and It goes as near to the

tries to attract customers customers as possible.
from wide areas.

3. It deals with wide variety It deals with limited number

of goods. of products only.

CCP104.89 6
3. It offers many free 3. It offers no
services and emphasizes services and
convenience and quality. emphasizes on
economy of costs.

4. It has higher operating

cost and sells at a higher 4. It has lower
price. operating costs
and sells at a lower
price.

5. It adopts decentralized 5. It adopts

purchasing and centralized
centralized selling. purchasing and
decentralized
selling.
CCP104.89 7
6. It is not flexible, therefore, 6. It is flexible and can be
closure of the stores is not an closed at any time by
easy process. transferring stock to
another branch.

7. It advertises intensively in a 7. It advertises extensively

limited area. to cover wide area.

8.The size of the organisation is 8. The size of the shop is

large. limited.

9. It does not produce the goods. It 9. It assembles the goods

only assembles and provides and some times may
them the consumers. produce the goods.

CCP104.89 8
10. It maintains heavy stocks of 10. It maintains low stocks of
all varieties, which invites limited varieties, hence risk
high risk. is low.

11. It caters largely to well to do 11. It caters to the needs of

customers who value common man who is price
variety and service. conscious.

12. It sells both on cash credit 12. It sells always on cash

basis. basis.

CCP104.89 9
13. It cannot control all the 13. It controls all the
activities of branches
activities much easily.
spread over wide
areas.

14. The decoration of

14. There is uniformity in
different departments is
shop decoration, its
not uniformly
layout, window
maintained. display
etc.,

CCP104.89 10
Summary
 Departmental stores are centrally located
and attracts the customers whereas
Multiple Shops are located nearer to the
customers

 Departmental stores are not flexible and it

is not easy to close whereas Multiple
stores are flexible and easy to close the
store, the stock can be shifted to the
nearest branch

CCP104.89 11
Quiz

1. _______ is easily identifiable by its display

/layout
Ans: Multiple shop

5. Which of the following is associated with

Multiple shop
VI. wide variety of product lines
VII. centrally located
VIII. Transfer/exchange of goods
IX. Huge capitals

CCP104.89 12
Frequently Asked Questions

1. What are the differences between the

Departmental Stores and Multiple Stores?

4. Give any four differences between the

Departmental Stores and Multiple Stores?

CCP104.89 13