Distinguish between departmental store and chain …

Basis of Differences

Departmental Store

Multiple shops

1.

Nature

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There is one store with many departments.

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There are several shops under this system and the shops are scattered over several places.

2.

Variety of Goods

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Deals in a large variety of goods.

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Deals in one commodity.

3.

Purpose

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It provides all types of goods to satisfy all requirements of customers.

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They meet only the limited requirements of customers.

4.

Customers

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High class rich people.

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Belong to higher and middle income groups.

5.

Advertisement

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It is carried only locally.

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The chain stores are organized on a wide scale or on a nation wide basis.

6.

Window display

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Done in an artistic decorative style which is unique.

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Done in an identical manner.

7.

Risk

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Risk is more and concentrated on the store.

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Risk is divided over all the shops.

8.

Credit facility.

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May be allowed to reputed customers.

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All sales are on cash basis.