Departmental Stores | Advantages and Disadvantages | Departmental Stores v/s Supermarket ?

Everything you need to know about a Departmental Store

What are Departmental Stores ?


Departmental Stores | Pros and Cons |  Difference Between Departmental Stores and Supermarket ?


          Departmental stores are large-scale retail establishments that deal under one roof under a single management. They sell a wide range of goods. They are divided into various divisions, each of which sells a different type of product.

A departmental store sells a large number of goods in a wide range of prices.

Difference Between Departmental Stores and Supermarket :-



· A Departmental Store is more difficult to build than a Supermarket.


· Establishing a Supermarket is relatively simple.

2. Funding


· A Department Store necessitates a larger investment.


· Supermarkets need a smaller amount of money.

3. Goods and Services Offered


· A Departmental Store provides almost all the goods and services that customers need on a daily basis, ranging from “Pin” to “MotorCar.”


· A supermarket usually sells grocery and daily-use products.

4. Sales Methodologies


· A salesman sells goods in the departmental store.


· Customers pick products in a supermarket without the help of a salesperson.

5. Goods Prices


· The prices of products in Departmental Stores are usually higher than retail prices.


· Supermarket costs are usually lower than market prices

Advantages and Disadvantages of Departmental Stores



Advantages of Departmental Stores:-


1. Shopping Convenience:

A department store allows a customer to buy his or her entire needs in one place. Thus, it saves the time and work of the customers needed to go to different shops; department stores deal with everything that is required for daily life. 

2. Automatic mutual advertisement:

One department advertises for the other. A customer, who enters the store to buy a few items, can easily be persuaded to buy so many other items from other departments located within the same buildings.


3. Comprehensive service offering:

The amenities and services provided by the store attract a significant number of customers. We do not like to visit other retail businesses. Courtesy, fair treatment and services like free home delivery, increase the feeling of laziness, love of luxury and temptation for all kinds of comforts while shopping.



4. Central Location:


The shop lies in the heart of the city. As a result, it is easily accessible to anyone staying in the surrounding communities. The central location, the attractive window display, the comforts and amenities, and the extensive advertising attract a very large number of customers as a regular store located on a street corner.


5. Wide Selection:

As a department store keeps a very wide variety of products from different models, colors, styles, etc., a customer can make a much better selection of products at the time of purchase.

Disadvantages of Departmental Stores:-


Department stores are not without flaws. There are some clear constraints that are impeding their development.

1. Expensive operating costs


           Department stores are found in strategic locations. They are sleek, well-decorated, and well-equipped with the most up-to-date amenities.


          They are massive, necessitating a large number of supervisors and significant investments. They even hire specialists, including window decorators, copywriters, and so on. The salary charged to these employees adds to the department store’s high overhead costs. In the end, the operating costs are heavy.

2. Expensive money


           The establishment of a department store necessitates a large sum of money. A large building in a convenient location is also essential for its success. As a result, a massive amount of fixed capital is sunk in the form of its premises. Aside from bank loans, funds may need to be raised from private sources. 

          The cost of capital obtained from such sources is relatively high. Department stores also invest in rental buildings with exorbitantly high rents.

3. Lack of a personal touch


          A department store is a big business. The employment of a large number of people is unavoidable. Employees’ salaries can be low in order to reduce operational costs. The low-wage workers may be unmotivated, and their attitude toward consumers may be lukewarm. 

           The majority of department store workers leave in search of better opportunities. As a result, there is a high level of employee turnover

4. Risk elements


         Department stores incur losses as a result of risks. A broad variety of products distinguish department stores. They buy in large quantities. They keep a large supply of products on hand to meet the needs of their customers. This could result in dead stock, where capital is locked up. Furthermore, the prices of fashion items fluctuate. Employees can engage in pilferage and mishandling of products.

5. Excessive specialization


         The goods in department stores are classified into various categories. Each type of merchandise is handled by a different department. Department stores are especially important for selling women’s clothing, shoes, and home furnishings. 

          They are, in reality, predominantly a female species. As a result, maintaining personal contact with customers is challenging.



List of Best Departmental Stores:-

The following are the list of best Departmental Stores


    A department store will draw customers from all over the city as well as visitors from outside the city since it is situated in the city’s central location or shopping centers.  A department store, without a doubt, needs to be a consumer’s first preference when shopping.


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