Advantages are as follows :
1. Attract large number of customers :As these stores are usually located at central places, they attract large number of customers during the best part of the day.
2. Convenience of buying : By offering large variety of goods under one roof, the department stores provide great convenience to customers in buying almost all goods of their requirements at one place. As a result, they do not have to run from one place to the other, to complete their shopping.
3. Attractive services : A department store aims at providing maximum services to the customers. Some of the services offered by it include home delivery of goods, execution of telephone order, grant of credit facilities and provision for rest-room, etc.
4. Economy of large-scale operations : As they stores are organized on a very large scale, the benefits of large-scale operations, particularly, in respect of purchase of goods, are available to them.
5. Promotion of sales : The department stores are in a position to spend considerable amount of money on advertising and other promotional activities, which help in boosting their sales.
Limitations :
1. Lack of personal attention : Because of the large-scale operations, it is very difficult to provide adequate personal attention to the customers in a departmental store.
2. High operating cost : As the departmental stores give more emphasis on providing services, their operating costs tend to be on the higher side. These costs, in turn, make the prices of the goods high. They are, therefore, not attractive to the lower-income group of people.
3. High possibility of loss : As a result of high operating costs and large-scale operations, the chances of incurring losses in a departmental store are high. For example, if there is any change in the tastes of customers or latest fashions, it necessitates selling of such out-of-fashion articles in clearance sale, to reduce the huge inventory of goods built up.
4. Inconvenient location : As a department store is generally situated at a central location, it is not convenient for the purchase of goods that are needed at short notice.
Yogita Ingle 3 years, 11 months ago
Advantages are as follows :
1. Attract large number of customers :As these stores are usually located at central places, they attract large number of customers during the best part of the day.
2. Convenience of buying : By offering large variety of goods under one roof, the department stores provide great convenience to customers in buying almost all goods of their requirements at one place. As a result, they do not have to run from one place to the other, to complete their shopping.
3. Attractive services : A department store aims at providing maximum services to the customers. Some of the services offered by it include home delivery of goods, execution of telephone order, grant of credit facilities and provision for rest-room, etc.
4. Economy of large-scale operations : As they stores are organized on a very large scale, the benefits of large-scale operations, particularly, in respect of purchase of goods, are available to them.
5. Promotion of sales : The department stores are in a position to spend considerable amount of money on advertising and other promotional activities, which help in boosting their sales.
Limitations :
1. Lack of personal attention : Because of the large-scale operations, it is very difficult to provide adequate personal attention to the customers in a departmental store.
2. High operating cost : As the departmental stores give more emphasis on providing services, their operating costs tend to be on the higher side. These costs, in turn, make the prices of the goods high. They are, therefore, not attractive to the lower-income group of people.
3. High possibility of loss : As a result of high operating costs and large-scale operations, the chances of incurring losses in a departmental store are high. For example, if there is any change in the tastes of customers or latest fashions, it necessitates selling of such out-of-fashion articles in clearance sale, to reduce the huge inventory of goods built up.
4. Inconvenient location : As a department store is generally situated at a central location, it is not convenient for the purchase of goods that are needed at short notice.
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