Q.12. Identify and explain the benefits of the type of retail outlets which are run by same organisation and have identical products and displays.
Dear student,
The type of retail outlets described are chain stores.
The following are the benefits of chain stores:
The type of retail outlets described are chain stores.
The following are the benefits of chain stores:
- As they operate on large scale they are able to take advantage of economies of scale.
- They eliminate the role of middlemen.
- As they operate in more than one places, goods not demanded in one locality can be transferred to other localities.
- The risk can be diffused among the stores.
- They have high degree of flexibility in the sense that one store can be shifted to different location or shutdown without affecting the operation of other stores.