Internal Trade — OCM STD 11 Commerce — Question

• Chain stores or retail chain are very large retail shops that have branches at different areas, cities or even states.
• All the stores are owned by a single person and have standardized trade practices. D-mart is one such example of chain stores.
• Chain stores generally sell limited items falling in similar categories and which are essential for daily needs.
• The exterior and interior lay-out of store, glow-sign boards, uniform of employees, etc. are same for all stores.

Characteristics:

• Single owner: A chain store is owned by a single person.
• Same exterior layout: The exterior designs and even interior lay-out of chain stores are similar. This helps customers to recognize and associate them easily with the store brand.
• Trained employees: Employees of all chain stores are provided same training. They are trained on customer relationships, business objectives, etc. As a result the customers obtain same shopping experience in each outlet of chain store.
• Centralized management: The management of all the stores is centralized i.e. handled from one location which is called its head office. For example, which new product to introduce, which to remove, discounts, policies, festive offers etc. is handled by the head office.
• Common identification: All the outlets have same exterior and interior lay-out, way of putting sign boards, uniform for employees, etc. this develops a common identity for all stores. Whenever a customer sees an outlet of the chain store he develops familiarity and identifies and recognizes the store easily. This works as an advertisement and increases sales.