Features of Chain Stores

The features of Chain Stores are as follows:

1. Accessibility: These stores are located in reasonably populated areas where a sufficient number of customers can be approached. Rather than attracting customers to a central location, the idea is to serve them at a location close to their home or workplace.

2. Cost reduction: Merchandise manufacturing/procurement for all retail units is centralised at the head office from which goods are dispatched to each of these shops based on their needs. As a result, these stores’ operating costs are reduced.

3. Centralised Control: Each retail store is directly managed by a Branch Manager, who is held accountable for its day-to-day activities. The Branch Manager sends daily reports to the headquarters regarding sales, cash deposits, and stock requirements.

4. Supervision: The head office monitors all of the branches and is in charge of formulating policies and ensuring that they are implemented.

5. Transparency: The prices of goods in such stores are fixed, and all transactions are conducted in cash. The cash flows from merchandise sales are deposited daily into a local bank account on behalf of the head office, and a report is sent to the head office in this regard.

6. Regular Inspection: The head office usually appoints inspectors who are in charge of the day-to-day supervision of the shops, including the quality of customer service provided, adherence to head office policies, and so on.

7. Prices: Prices of goods are centrally fixed at all the stores.

8. Window Dressing: All the stores are decorated in the same setting and style.