How is collective advertisement and stock transfer advantageous to multiple chain stores?
Centralised advertisements and promotion enables the chain stores to lower their cost of operation. This happens because the chain stores by advertising collectively increases the sales of all the stores in its chain. Thus, a lump-sum cost helps in increasing the revenue of all the stores in the chain.
In addition to this, the chain stores has its operation in more than one place. Thus, in situations when goods are not demanded in one locality, they can be transferred to other localities. This in turn reduces the risk of accumulation on inventories in the stores.