Chain store

All information in detail about chain stores

1. CHAIN STORES SUBMITTED TO –MS. SURABHI MAHAJAN SUBMITTED BY – MANPREET KAUR ( L-2016-Hsc-17-BFD ) MANKRITI KAUR (L-2016-Hsc-16-BFD)

2. CONTENT…. What are Chain S tores? Characteristics of chain stores Classification of chain stores Advantages of chain stores 1. Advantages of chain stores to manufacturers 2. Advantages of chain stores to consumers Disadvantages of chain stores

3. WHAT is a CHAIN Store? A chain store system consists of a number of retail stores, which sell similar products, are centrally owned and operated under one management.

4. CHARACTERSTICS Specialization - They specialize in some particular kind of products and range is limited. Like- shoes, accessories etc. Cash and carry principle –They deal on cash and carry principle and do not sell on credit to customers. Direct Contact – A direct contact with customers is maintained in retail chains. Customers can directly view & buy the products from the store itself.

5. Appearance is simple and similar within stores – Different stores of same brand are similar in appearance and have similar kind of layout within the stores.

6. Centralized purchasing by head office – Centralized purchasing refers to purchase of material by a single purchased department for all it’s retail stores. It is done to avoid duplication, overlapping and on time delivery of products to all retail chain stores for a particular brand.

7. Centralized control & horizontally integrated – T he retail chains enjoy some degree of centralized control of operations. These chain stores are horizontally integrated with each other. With addition of each new store, the system extends it’s operation to another group of customers.

8. Individual units have less autonomy Promotional services are common to all stores. No bargaining and prices are fixed.

9. CLASSIFICATION OF CHAIN STORES 1. On the basis of location, chain stores are classified in four chains :- Local chains- C hain stores which operate in the city itself or near about the city are known as local chains. Sectional chains- C hain stores are located at different places within a distinct geographical unit, they are known as sectional stores.

10. LOCAL CHAIN STORES

11. SECTIONAL CHAIN STORES

12. National chains – National chains operate throughout the country . International chains- International chains have their presence beyond it’s own country in other nations.

13. NATIONAL CHAIN STORES

14. INTERNATIONAL CHAIN STORES

15. 2. Chain stores are classified on the basis of type of good handled.

16. 3. Utility operated chain store 4. Leased department stores: it includes jewellery counters and optical centers within departmental stores.

17. 5. Manufacturer controlled chain stores.

18. ADVANTAGES OF CHAIN STORES Advantages of chain stores to manufacturers:- Operational expenses are comparatively lower. Economies of large scale buying. Uniform price is maintained. Standardized methods of operations are followed in all chain stores.

19. 5) Effective inventory management. 6) Operating a new store and closing an unprofitable store are possible. 7) Risks of bad debts are less. 8) Advertisement expenses are less. 9) Transfer of goods is possible among stores.

20. Advantages of chain store to consumers Goods at cheaper prices Regular supply of goods Direct contact Easily accesible Assured of good quality goods

21. DISADVANTAGES OF CHAIN STORES 1. Single management 2. Lesser freedom of operations to individual stores 3. Customer services aren’t given 4. No individual tastes 5. Particular class of trading

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