Question

Explain the features of departmental stores.

Answer 1

The features of departmental stores are as follows:

- Provide maximum service to higher class of customers for whom price is of secondary importance.

- Located at a central place in the heart of a city, which caters to a large number of customers.

- As the size of these stores is very large, they are generally formed as a joint stock company managed by a board of directors.

- A departmental store combines both the functions of retailing as well as warehousing.

- They have centralised purchasing arrangements and sales are decentralised in different departments.