Gujarat BoardEnglish MediumSTD 11 CommerceOCMInternal Trade5 Marks
Question
What is departmental store? Explain its characteristics.
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Answer
Introduction:
Customers buy various products as per their requirements.
Mobile traders do not keep all products.
Moreover, they move ar different places.
So it is difficult to contact them.
In this circumstance it is easier and more comfortable to purchase from the traders who sell many things at a time.
It is desirable to purchase from fixed place.
Types of Fixed Shops of Retails Trading :
$(1)$ Departmental Store
$(2)$ Chain Stores
$(3)$ Mail Order Shops
$(4)$ Franchise
$(5)$ Super Market
$(6)$ Shopping Mall.
Departmental Store:
There are different departments selling goods in retail in one big store is called a departmental store.
It is managed and owned by a single organization.
Essential things and luxury items are sold here is retail.
Characteristics of a Departmental store :
Sale on Large Scales :
Departmental Stores sell in large scale in retail.
Located in Urban Area :
Departmental stores are generally found in urban areas.
Separate Department for Different Items :
There are different departments for various items. E.g. medicine department, stationery department, ready-made garments department, crockery department etc.
Ownership and Management :
Ownership and management of department stores are under one person.
Convenient to Customers :
Facilities of entertainment, restaurant, Wi-Fi etc., are provided in departmental store.
Big Capital Investment :
In departmental store retail sale of various items is carried out on large scale.
All these departments are owned and administered centrally.
It requires big amount of capital investment.
Training to Employees :
Employees are given training to become modest salesmen and to increase sales. They are trained to behave well with customers.
Guidance :
Employees welcome customer in departmental store and show them the items they sell.
They provide required suggestion and become helpful in decisions of selection.
More Expensive :
Infrastructure of departmental store in quite expensive.
It is expensive to maintain all departments.
Chain Store :
“Chain stores means the stores that are sun by the owner selling only limited items of the same quality at various branches”.
The external layout of all stores is the same e.g. the stores of Bata SHOES Company, Parlours of the Havrmor Ice-Cream, Vadilal Ice-Cream, Parlours of Honest Bhaji-Pav etc.
Characteristics of a Chain Store :
Stores of single owner :
Ownership of chain stores is of one person only.
Centralized Management :
All stores are managed by main central office.
Same decoration :
Outward decoration and show of chain stores is the same.
Common Identification :
Dress code of employees, same decoration establish identity of store.
Training to Employees :
All employees are given training of business policy, and behavior to bring uniformity among them.
Uniform Policy :
In chain stores price, policy of business, sales policy and after sales services given to the customers are found uniformed.
Centralized Advertisement :
Advertisement for each chain store is carried out by head office.
Cash Sale :
In all chain stores mostly products are sold on cash.
Mail Order Shops :
A mail order shop means a shop selling useful essentials to the far off places by post and realizing money by post.
These shops send price list to their customers and receive orders from them.
These shops mostly sell light weight, small sized valuable articles.
They supply articles to all class of people at the door steps.
It requires no showroom. Direct contact with customers too is not required.
It does not require much capital investment.
Franchise Shops :
When a special right is given by signing a contract with a businessman for selling or manufacturing its branded products under its own name, it is known as franchise.
The original company has given franchise right to the businessman and the shop of this business man is known as franchise shop.
The decoration of the shop, sign board, furniture, color are the same as the parent company.
Sometimes for manufacturing of product franchise is given.
In such cases raw-material is provided by parent company.
Constant supervision of the parent company provides guidance to maintain quality.
The parent company recovers royalty at the rate fixed in the contract against allowing to use its trade mark or brand.
Parent company imparts training to the employees of franchise receiver company.
Franchise receiver does have to spend for advertisement also.
Normally some centers such as NUT, APTECH, some restaurants like. Pizza Hut etc., provide products and services to customers.
Super Market :
Products are purchased from pr;;giousmanufacturers and sell them at reasonable price in Super Market. The size of such shopsare quite big and large. Products are sold at quite reasonable rates. For growth of sale, various scemes are implemented which attract small shopkeepers e.g. Buy 2 get 1 Free.
Shopping Mall :
Shopping malls are developed due to change in Departmental Stores.
They are spread in wider space than Super Market.
The building of shopping mall is absolutely modern.
There are many shops owned by more than one owner selling essential products.
Luxury products are available. Branded items are sold at one place.
It is called Shopping Mall. Various products of different brands are sold here.
Same articles of different brands are available here.
There is competition among same product of different brands.
Various schemes are used even in shopping malls to attract customers so that sale may grow.
In modem shopping malls restaurants, entertainment for children, multiplex theatre, Wi-Fi etc. facilities are provided to customers.
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