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Explain the features, advantages, and disadvantages of departmental stores.

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Departmental stores: 

A departmental store is a large scale retail shop selling a wide variety of goods in different departments under one and management. Each department deals in a separate line of goods like stationery, books, furniture, clothing, etc. Consumers can purchase all goods from the departmental store.

Features of a departmental store 

1. It is a large scale retail organization. 

2. A number of retail shops in the same building. 

3. It offers a wide variety of products under one roof. 

4. It is located at central places of the city 

5. The products are arranged in separate departments

6. Sales, control, and management are centralized 

7. It offers various services and facilities like free home delivery etc.

Advantages 

1. Central locations: 

As these stores are usually located in central places they attract a large number of customers.

2. Convenience in buying: 

By offering a large variety of goods under one roof, the departmental stores provide great convenience to customers in buying almost all goods of their requirements in one place.

3. Attractive services: 

A departmental store aims at providing maximum services to the customers.

4. Economy of large-scale operations: 

As these stores are organised in a very large-scale, the benefits of large-scale operations are available to them.

5. Mutual advertisement: 

All the departments are under one roof, so there is an economy in advertising.

6. Risk distribution: 

If there is a loss in one department, it may be compensated for the profit of other departments.

7. Increased sales: 

Central location, mutual advertisement, etc. will help a departmental store to increase its 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 these stores.

2. Inconvenient location: 

As a departmental store is generally situated at a central location, it is not convenient for the consumers who reside away from town. 

3. High price: 

A departmental store charges a high price for the products because of high operating costs. 

4. High operating cost: 

As these stores give more emphasis on providing services, their operating costs tend to be high. 

5. High advertisement cost: 

The success and prosperity of a departmental store depends on advertisement. Therefore, it should spend a large amount on the advertisement. 

6. Lack of effective control: 

Departmental store works through a large number of departments. It creates so many problems. 

7. High risk: 

A departmental store keeps a large stock of goods. So changes in fashion, taste, price, etc will affect the profitability of the business.

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