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Large Scale Fixed Retailers - Chain Stores or Multiple Shops

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Topics

  • Introduction 
  • Definition: Chain Store
  • Features 
  • Real-Life Aplication
  • Key Point Summary
Maharashtra State Board: Class 11

Introduction

Chain stores are retail shops owned and operated by a single business organisation that has many branches in different locations.

  • These branches look alike inside and outside, with uniform design, staff uniforms, and pricing strategies, all controlled centrally.
  • This system enables chain stores to consistently serve customers across multiple locations.
Maharashtra State Board: Class 11

Definition: Chain Store

  1. According to James Stephenson, “A Chain store shops consists of a number of similar shops owned by a single business firm.”
  2. According to Clark and Clark:
    “Chain stores system consists of a number of retail store, which sell similar products are centrally owned and operated under one management.”
Maharashtra State Board: Class 11

Features

Maharashtra State Board: Class 11

Real-Life Application

  • In India: Bata Stores (footwear), Raymond Stores (apparel), Vijay Sales, and Croma (electronics).
  • International Examples: Walmart, Tesco, McDonald's.
Maharashtra State Board: Class 11

Key Point Summary

  • Chain stores operate many identical shops under one management.
  • They ensure uniform prices, appearance, and product quality.
  • Centralized bulk purchasing helps reduce costs.
  • Require a large investment and extensive management systems.
  • Serve customers consistently across a wide range of locations.

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