Question
Write a brief note on departmental store and chain store.
Solution
(i) Departmental stores delegate the responsibility and authority to departmental heads for purchasing of commodities and for overseeing the sale in different sections of the stores.
(ii) Chain stores are able to purchase merchandise most economically, often going so far as to direct the goods to be manufactured to their specification. They employ highly skilled specialists in many executive tasks. They have the ability to experiment in one store and apply the results to many. By doing so, they spread risk over many locations. Advertising and sales promotion is more economic.
