Department of technical education

Andhra Pradesh
Name : A. Srinivas Kumar
Designation : Senior lecturer
Branch : Commercial and computer
practice
Institution : Government polytechnic
for women, nandigama.
Year/ semestar : 1st year
Subject code : CCP -104
Topic : Distribution network
Duration : 50 Mts.
Sub topic : Multiple shops
Teaching Aids : power point, Animations

CCP 104.86 1
Objectives
 On completion of period, you would be
able to:
 Define multiple shops
 Explain the development of the multiple
shops
 Explain Organization and management of
multiple shops
 Features of multiple shops

CCP 104.86 2
Recap

So far we have discussed

 Retailers
- Traders
- Fixed Shops
 Large scale retailers
- Departmental store

CCP 104.86 3
Multiple Shops

Multiple shop refers to an organization under

which a large number of similar shops are opened
at different places in one particular area or
throughout the country under a centralised
management and dealing in similar line of goods.

It is also called as Chain Stores in USA.

CCP 104.86 4
Origin and growth

 The multiple shops system (chain stores) was

developed in the U.S.A. where the first chain,
Great Atlantic and Pacific Tea co., was set up in
1859

 In India chain stores have become popular to

some extent

 It is established by the Bata shoe company,

DCM, Binny, Usha are some of the examples of
chain stores in our country

CCP 104.86 5
Organization and management
 Multiple shop system is organized generally as a
joint stock company

 The management of the company lies with Board

of Directors and the General manager

 Under the General Manager the state managers

are working and under State Manager the district
managers will have to work for the operation of the
stores

 Each stores is headed by a store manager who

works with the assistance of the salesmen
CCP 104.86 6
Features of multiple shops

 It works on the basis of Cash and Carry principle

 The entire buying is undertaken by expert buyers

at head quarters

 The stores deals in a single line of standardised

goods

 They adopt a standardised design of their

premises and window display

 Prices are fixed byCCPthe

104.86
management at Head 7
Office only
Features of multiple shops
 Multiple shops being large scale retail organizations
require large amount of capital
 All the branches are under unified system of control
from head quarters operated by the Board of
Directors of the Company
 The Head Office maintains go downs at strategic
points
 Branch Managers are not allowed to draw their
salaries and meet their expenses from the sales
made by them
CCP 104.86 8
Features of multiple shops

 The Head Office maintains godowns at

strategic points

 The branch manager has to submit periodic

accounts to the head office

 He undertakes periodic inspection of different

stores to verify the stock, remittances,
maintenance of accounts

CCP 104.86 9
Summary
 Multiple shops refer to an organization under
which a large number of similar shops at
different places in one particular area
 In U.S.A the multiple shops are called as chain
stores
 The multiple shops system was developed in
the U.S.A.
 Features of multiple shops
a) Cash sales b) Central buying c) Limited line
of articles d) Appearance e) prices f) Huge
capital g) centralized control h) maintenance of
warehouses
i) payment of expenses j) remittance of sale
proceeds k) periodic inspection
CCP 104.86 10
Frequently Asked Questions

1. Define the chain stores?

3. What is the origin and growth of the chain

stores?

5. What are the features of multiple shops

(chain stores)? Give suitable examples.

CCP 104.86 11
Assignment
1. Ramu and Ranga, Moderately literate, who
can invest lakh each, wish to establish a
suitable Rs.1 business. What type of retail
Trade do you suggest. Why?
2. You have capital of Rs.10 lakh. You wish to
limit your product line to a few and wish to
be unique. Your friend advised you a
department store. Do you accept? What is
your argument?

CCP 104.86 12