ARE chain stores evil? Not only do chain stores tend to have cheap prices, but they also force other stores to lower their prices, a state of affairs that does the most good for the least affluent. Until society decides to do more to help the working poor, the chains at least provide low-skill jobs and low-cost goods.
A chain store is a group of similar retail shops that sell the same type of goods. All these shops or branches are under the control of the head office.
Chain stores are also known as multiple shops which function under one brand and have common ownership. This is branches or outlets of a single brand that are spread across the country. These type of shops were first established in America and now have become popular all over the world.
Top 10 Retail Companies in India
- Aditya Birla Fashion & Retail Ltd. ( Pantaloons)
- Avenue Supermarts Ltd (D-Mart)
- Future Enterprises Ltd.
- Future Lifestyle Fashions Ltd.
- Future Retail Ltd.
- Reliance Retail Ltd.
- Shoppers Stop Ltd.
- Trent Ltd (Westside)
6 Ways to Manage Multiple Retail Stores in Different Locations
- Standardize your operating procedures.
- Hire professional and reliable staff.
- Build strong inter-team communication.
- Store all your sales data in one repository.
- Automate the process of tracking inventory.
- Conduct regular retail store evaluations.
A chain store is a group of similar retail shops that sell the same type of goods. All these shops or branches are under the control of the head office. Branches are opened in different parts of the city or even in different parts of the country. Chain stores specialize in a particular product.
A specialty store carries a deep assortment within a narrow line of goods. Furniture stores, florists, sporting-goods stores, and bookstores are all specialty stores.
Functions performed by retailers:
- (1) Buying and Assembling:
- (2) Warehousing or Storing:
- (3) Selling:
- (4) Credit Facilities:
- (5) Risk Bearing:
- (6) Grading and Packing:
- (7) Collection and Supply of Market Information:
- (8) Helps In Introducing New Products:
A chain store is a retail company with more than one branch. There are a variety of chain stores from big-box retailers to specialty shops, from supermarkets to restaurant chains. Examples of well-known chain stores include Wal-Mart, Target, Macy's, Home Depot, Bed Bath & Beyond, and The Body Shop.
(i) The buying and selling of goods and services takes place within a country. (ii) The payment are made and received in the home country only. (iii) There are no or very few formalities to be completed by the traders. 2.
A supermarket has the following characteristics:
- It operates on self service basis.
- Prices are comparatively lower.
- Credits are not extended to customers.
- It offers large varieties of goods.
- The profit margin is lower.
- Customer service is minimum.
- Sales are not compelled.
- Neat display of goods is quite attractive.
Department stores and chain stores are two different concepts. Department stores have a long history of offering a wide variety of goods for retail sale, while chain stores are retail outlets in various locations under the same brand and management.
Some features of such itinerant retailers are as follows,
- The scale of operations is small.
- The capital is also limited in the case of itinerant retailers.
- They usually deal in day to day products and perishable items of daily use like fruits, vegetables, milk, toiletries etc.
By selling directly to the consumers, the multiple-shop organisation is able to eliminate unnecessary middlemen in the sale of goods and services.
(i) A multiple store provides buyers with limited choice as it deals in one particular line of goods. (ii) There is a lack of personal contact with customers. (iii) If there are many branches, managing all of them properly becomes and standardised products are difficult. (iv) Branch managers have limited powers.
There are 5 main disadvantages to franchising your business:
- 1 – Loss of Control.
- 2 – Training and Continued Support of Franchisees.
- 3 – Poorly Performing Franchisees.
- 4 – Compliance Costs and Risk.
- 5 – Managing Growth.
The advantages of multiple shops are as follows : Low cost: These shops have low operational cost because of centralized purchasing and promotion of sales. Diffusion of risk: The total risk of an organisation is reduced as the losses incurred by one shop are covered by the profits made in the other shop.
Departmental stores offer variety of products to consumers; multiple shops sell only limited i.e. one or two lines of goods. (ii) Location: Departmental stores are centrally located and attract more customers, whereas multiple shops are scattered throughout the city and try to reach near to the customers.
The three main types of off price retailers are:
- independent off price retailers.
- factory outlets.
- warehouse clubs.
A multiple store is one of several retail enterprises under the same ownership and management. A multiple store is one of several retail enterprises under the same ownership and management.
Advantages of buying a franchiseYou don't necessarily need business experience to run a franchise. Franchisors usually provide the training you need to operate their business model. Franchises have a higher rate of success than start-up businesses. You may find it easier to secure finance for a franchise.
The main features of multiple shops are as follows:
- Large size: Multiple shops are a form of large scale retail organisation.
- Specialisation:
- Decentralised location:
- Centralised management:
- Cash sales:
- Uniform display:
- Centralised supply:
- Uniform Prices:
A retailer is one who stocks the manufactured goods and is involved in the act of selling to the final customer or consumer, at a margin of profit. Retailing is the last link that connecting the individual consumer with the manufacturing and distribution chain.
Chain stores are multiple retail shops which operate under one brand name and have the common ownership. Basically, they are all outlets or branches of the same brand/store. These types of retail stores actually originated in America but are now seen worldwide. One common example would be Croma or DMart.
We spoke with experts in the industry to learn more about how to open a retail store.
- Generate an idea and business plan.
- Choose a name for your retail store.
- Cover your legal basics.
- Find the right location.
- Create a personalized experience.
- Build vendor relationships.
- Explore marketing opportunities.
- Plan for a grand opening.
What is another word for chain store?
| department store | discount store |
|---|
| showroom | store |
| anchor store | dime store |
| five-and-dime store | outlet store |
| retail store | supermarket |
