DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A.Srinivas Kumar
Designation : Senior lecturer
Branch : DCCP
Institution : Government polytechnic for
women, Nandigama
Year/semester : I year
Subject code : Ccp-104
Subject : Business organization
Topic : Distribution network
Duration : 50 mts.
Sub topic : Large scale Retailers
Teaching aids : PPTs

CCP104.85 1
Objectives

On completion of period, you would be able to

 List the types of large scale retailers
 List features of large scale retailers
 Explain advantages of departmental
stores
 Explain disadvantages of
departmental stores

CCP104.85 2
Recap

So far we have learnt

 Who is retailer
 Different forms of small scale
retailers
 Itinerant traders
 Fixed shops

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Large Scale Retail Shops

If we wish to
 Purchase various articles on a large scale
 At one place not moving too distance
 What should we do

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 Large Scale Retail Shops

Large Scale
Retailers

Departmental Super
Mail Order Co-operative
Stores Chain Stores
houses
Malls stores
Markets

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Large Scale Retail Shops
A. Departmental Stores
• A departmental store is a large retail
establishment having in the same
building a number of departments
each of which confines its activities
to sell one particular product
• “Departmental stores is a store
engaged in the retail trade of the
wide variety of articles under the
same roof”

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Features of Departmental Stores

• Centrally Located
 Departmental stores are located in the
centre of retail trading of large cities. Hence
the stores are within the reach of most of the
consumers
b) Wide Varieties
 Departmental stores sell merchandise of
many kinds and wide varieties which attracts
a large number of customers

CCP104.85 7
Large Scale Retail Shops
c) Service to Consumers
 Departmental store offers services and amenities to
their customers including provision of recreation
d) Extensive use of Advertising
 It attract customers by their window display and
variety of stocks
e) Cost of operation
 The cost of operation is high due to rent, advertising,
recreation facilities, home delivery etc.,

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Large Scale Retail Shops

f) Centralised Management and Control

 Departmental store is a cluster of several shops
under one roof operating through common
owners under one management and control
g) Fixed Prices
 Goods are offered for sale at fixed prices only.
There is no scope for bargaining since the price
is printed on the package or on the product

CCP104.85 9
Disadvantages of Departmental
Stores
 High cost of operation
 Higher prices
 Lack of personal contacts
 Distance from Place of Residence
 High Risk
 No Credit Sales
 Huge Capital
 Lack of Interest
 Difficulty of Supervision
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Summary

 Meaning of Departmental stores

 Features
 Advantages
 Disadvantages

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Frequently Asked Questions

4) Give any four types of large scale retailers.

5) Define Departmental Stores.
6) What are the features of Departmental Stores?
7) What are the advantages and disadvantages of
Departmental Stores?

CCP104.85 12
Assignment

1. Mrs. Ramulamma , age 65 years, wants to do

business for her survival. She can invest only
Rs.1000/- .which type of retail trade do you
suggest. Justify your argument.
2. Mr. Sampath kumar ,B.E. (computer science)
seeks your advice on establishing a suitable
trade with capital of Rs. 1 lakh advice suitably
with convincing reasons.
3. A Group of illiterate but wealthy friends thought
of establishing a self employment venture in a
busy vijaywada centre. What do you suggest ?
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