Chain or Multiple Shops
Chain or Multiple Shops have similar stores scattered all over a country. They are run by branch managers who receive instruction from the head office. The goods are bought by the head office and later distributed to the other branches. The multiple shops are also called chain stores. Examples are Bata shops, Lennard, etc.
Characteristics of Chain or Multiple Shops
1. Multiple shops are characterized with similar shops all over the country.
2. The price of goods is determined by the head office.
3. It is operated on cash and carry basis.
4. They are located in strategic areas in Urban towns.
5. Goods are bought in bulk from the producers/manufacturers.
6. One type of product is sold in all their branches all over the country.
1. Staff can easily be transferred from one branch to another.
2. Goods are bought in large quantities from the producers.
3. They are specialists in selling one type of product.
4. The cash and carry system operation helps them to cancel or reduce bad debts.
1. Large capital is required for the establishment of this business.
2. There is more transportation cost since goods are first conveyed to the head office before taken to the branches.
3. They deal only in one range of goods.