Introduction to Departmental stores?

A department store is a large establishment that sells a wide range of products

o r g a n i s e d i n t o d i s ti n c t d e p a r t m e n t s i n o r d e r t o s a ti s f y n e a r l y e v e r y c u s t o m e r s ’
r e q u i r e m e n t s u n d e r o n e r o o f. I t i s d i v i d e d i n t o s e v e r a l d e p a r t m e n t s , e a c h o f w h i c h
f o c u s e s o n a s p e c i fi c t y p e o f p r o d u c t . F o r E x a m p l e : W i t h i n a s t o r e , t h e r e m a y b e
separate departments for toiletries, medicines, furniture, groceries, electronics,
clothing, and dress material.

They cater to a wide range of market segments with a diverse range of goods and services. In the United States
of America, it is not uncommon for a department store to sell ‘needle to an aeroplane’ or ‘all shopping under
one roof.’ A typical department store’s spirit encompasses everything from “a pin to an elephant.” Real
department stores have yet to make a significant impact in the retailing industry in India. However, in India,
some stores carrying this line include ‘Akbarally’ in Mumbai and ‘Spencers’ in Chennai

Features of Departmental Stores

The features of Departmental Stores are as follows:

1. Excellent Services: A modern department store may include all amenities such as a restaurant, a travel and
information bureau, a phone booth, restrooms, and so on. As a result, they strive to provide the excellent
service possible to a higher class of customers for whom price is secondary.

2. Centralised Locations: These stores are generally located in a central location in the heart of a city, where
they can serve a large number of customers.

3. Corporate Status: As these stores are so large, they are usually organised as a joint stock company operated
by a board of directors. A managing director is in charge, who is assisted by a general manager and several
department heads.

4. Elimination of Middlemen: A department store performs both retailing and warehousing functions. They buy
directly from manufacturers and have their own warehouses. As a result, they contribute to the elimination of
undesirable middlemen between producers and customers.

5. Centralised Purchasing: They have centralised purchasing procedures. All purchases in a department store
are made centrally by the store’s purchase department, whereas sales are decentralised in various
departments.

6. Variety of Goods: These stores maintain a large variety of goods and services and are able to meet all the
requirements of the customers.

Visit to a Departmental Store

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