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Distinguish between departmental stores and multiple shops.

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Differences between a multiple shops and a Department store:

1. A multiple shop serves the masses, whereas a department store serves mainly the rich.

2. A multiple shop approaches the customers through a net work of branches, whereas a department store makes the customers approach it by having its business in a ’ central place.

3. A multiple shop sells goods only on cash basis, whereas a department store sells goods both on cash and credit basis.

4. The essential feature of a multiple shop is centralized buying and decentralized selling. But the essential feature of a department store is decentralized buying and centralized selling.

5. As a multiple shop establishment is distributed over large area, it has a larger number of customers than a department store.

6. The prices charged by a multiple shop are lower than those of a department store, because the overhead charges of a multiple shop are less than those of a department store.

7. The formation of a multiple shop involves the opening of many similar branches in different localities. But the formation of a department store involves the shopping of several separate departments in the same premises.

8. A multiple shop can be formed in any place where there are buyers. So, the selection of a site for the opening of a branch is not difficult problem.

9. A multiple shop deals only in one variety of articles, whereas a department store deals in many varieties of articles.

10. As a multiple shop deals in one variety of articles, it cannot meet all the needs of the customers. But as a department store deals in many varieties of articles, it can meet all the requirements of the articles.

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