Advantages of chain stores
- They buy goods in large scales which enables them to obtain good trade discounts.
- The cost of running a chain store is controlled and managed at the head office. The headquarters advertises on behalf of the branches
- Slow-moving goods in one branch cab be transferred to another branch where demand for them is higher
- The identical sold by chain stores and the similar shop fronts and window displays publicize the business
- Chan stores serve a wider market because they are spread all over the country
- Goods are sold on cash basis, hence reducing the cost of managing bad debts
Disadvantages of chain stores
- Large amount of capital are required to run a chain store
- People tend to shy away from buying identical products such as clothes
- Chain stores do not offer credit facilities, except those operating exclusively on hire purchase scheme
- Lack of personal touch with customers
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