Describe the features of Departmental Stores.
Or, Write down the characteristics of Departmental Stores.
Or, What is Departmental Organization? Mention two features of a departmental organization.
Definition:
Departmental organisation can be defined as that type of institution which handles a wide variety merchandise under one roof with the merchandise grouped into well-defined departments which is centrally controlled.
Features of Departmental Stores
The features of the departmental store are described below:
1. Ownership and management:
The departmental stores business is under the same ownership and management and positioned under the same roof.
2. Decentralized purchase and centralized sale:
The source of purchase of this type of organization is decentralized, but the sale system is centralized. In other words, buying different products from different sources and selling those products in the same place is a special feature of departmental stores.
3. Cash sales:
All sales in this type of shop are in cash. There is no system to sell goods on credit.
4. Speciality of sale:
People from rich and aristocratic communities can purchase everything they need in such stores.
5. Types of alliances:
Departmental stores are examples of side alliances.
6. Service delivery:
The purpose of departmental stores is to satisfy the customers by providing various services. For example : Many times it arranges to deliver the goods to the buyers’ places at no cost.
7. Location:
This type of shop is usually found in the center of big cities.
8. Intermediaries:
They are not involved in the production of goods. They only act as an intermediary.
9. Huge capital requirement:
It develops as a large-scale retail business. As a result, plenty of capital is required to form such a business.
9. Sale of consumer goods:
Consumer goods are usually sold in departmental stores.
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