A department store is a type of large-scale retail establishment that houses multiple departments. Each division is responsible for a specific type of business. All of these divisions are governed by a single set of administrators.
Advantages of Departmental Store
The benefits of shopping at a department store typically include:
Easy shopping convenience
Rather than having to make multiple stops at different stores, customers may get all they need at a department store. Customers appreciate the time and effort savings provided by this service.
Wide number of choices
Because of the store’s extensive inventory, buyers may choose from a wide range of products, each of which may differ in terms of quality, designing, brand, color, style, etc.
Various services
Free home delivery, phone orders, restaurants, amusement centers, reading rooms, after-sales service, and more are just a few of the exclusive amenities offered to clients. Some of the shops even let you make purchases on credit.
Advertising and economy
The promotion of one division is the promotion of the others as well. When a shopper enters a department store for one reason, they are often persuaded to make further purchases. Therefore, one division promotes another. In addition, the massive size at which department stores pan advertise allows them to save money.
Centralized location
Typically, a city’s flagship department store can be found at the heart of the action. As a result, it’s convenient for the public to get their hands on.
Large sales volume
Department stores generate more revenue as a result of the many services they offer. The selling price per unit drops and the profit per unit rise as the turnover rate rise. Department shops are able to buy in bulk from manufacturers because they have access to sufficient capital. It lessens the product’s overall cost while increasing profits.
Specialized services
The department stores are able to pay for specialists with specialized skills to handle each task. In addition to reducing expenses, this also boosts revenue and profits.
Easy to make selection
Department shops are both a massive customer base and a trustworthy friend. These businesses provide customers with expert advice and a wide selection of products.
Modernization symbol
Consumers in large cities love department stores because they can find everything they need under one roof. Department store shopping is a fun experience for many consumers.
Operational efficiency
Staff at department stores typically has a high level of education, experience, and training. It contributes to the enhancement of the company’s operational efficiency.
Disadvantages of Departmental Store
Huge cost involved
Department stores have an extremely high cost of conducting business because of the hefty rents they must pay, the high salaries of their employees, and the extensive consumer amenities they must offer.
Distance
People who do not live in the vicinity of a department store’s core location are unable to take benefit of its services.
Difficulty in establishment
Department stores are expensive to open because they need a lot of money and a lot of people who specialize in different areas. The decline in department stores’ popularity in India can be attributed to a number of factors. They function best in developed nations where there is an abundance of money and wealthy people.
High prices
Department store pricing are usually generally greater than those of specialty shops. Very few Indians have enough disposable income to shop at upscale department stores.
Lack of co-ordination
There is a rising trend of unhealthy rivalry between the various divisions. It’s also tough to maintain command and proper oversight across multiple divisions.
No personal contact
The owners of department stores rarely interact with their clientele. Employees, who may not be invested in the clients’ happiness, make the sales.
Department stores are too big for owners to interact with consumers directly, and sales are handled by salespeople rather than the store’s proprietor. Customers aren’t given enough one-on-one care.
Difficult to supervise
There are usually dozens, if not hundreds, of different types of stores within a department store. Having equal say in the nomination, management, and oversight of multiple divisions may seem like an improbable scenario. In the lack of qualified employees, workers must overcome the difficulties of persuading management and command.
Fewer options
Department stores are not equipped to handle a wide variety of consumer purchases. They offer very specific packages of goods. They could never hope to offer every possible product option to their customers.
Deal with thefts
Theft, burglary, and other forms of abuse and criminality are all possible in departmental store. Robberies can be committed by customers or employees.
Low customer feedback
Department stores serve numerous people every day. As salaried employees, retail sales associates have a hard time focusing on each and every customer, and as a result, their feedback is often very muted or nonexistent.
Need specialists
Professional management is needed to oversee the planning and operation of the department store. In any case, subject matter specialists are difficult to delegate to and keep up with.
Due to the lack of available funds, department store chains in India are unable to open their doors for business. Additionally, there is a lack of trained and efficient personnel in India who can help set up and manage department shops.
Conclusion
The point of a department store is to sell everything imaginable, “from a safety pin to a broom,” all under one roof. Its other mission is to be a reliable source for any and all consumer needs.
Visit your favorite departmental store and have a realistic shopping experience.
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.