Question

Enumerate the limitations of chain stores.

Answer 1

The limitations of chain stores are as follows:

- They do not sell products of other manufacturers. In that way, the consumers get only a limited choice of goods.

- Looking up to the head office for guidance on all matters. This takes away the initiative from the people who run the stores.

- Lack of initiative in the employees sometimes leads to indifference and lack of personal touch in them.

- The management may have to sustain huge losses because of large stocks lying unsold at the central depot.