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INTERNAL TRADE 227 (ii) Elimination of middlemen: By of other manufacturers. In that way selling directly to the consumers, the the consumers get only a limited choice multiple-shop organisation is able to of goods. This, however is not the case eliminate unnecessary middlemen in with retailer owned chain stores such the sale of goods and services. as Big Apple or Reliance Retail which (iii) No bad debts: Since all the sales sell products of a large number of in these shops are made on cash basis, manufacturers. there are no losses on account of bad (ii) Lack of initiative: The personnel debts. managing the multiple shops have to (iv) Transfer of goods: The goods obey the instructions received from not in demand in a particular locality the head office. This makes them may be transferred to another locality habitual of looking up to the head where it is in demand. This reduces office for guidance on all matters, and the chances of dead stock in these takes away the initiative from them to shops. use their creative skills to satisfy the (v)  Diffusion of risk: The losses customers. incurred by one shop may be covered (iii) Lack of personal touch: Lack of by profits in other shops, reducing the initiative in the employees sometimes total risk of an organisation. leads to indifference and lack of (vi) Low cost: Because of centralised personal touch in them. purchasing, elimination of middlemen, (iv) Difficult to change demand: centralised promotion of sales and If the demand for the merchandise increased sales, the multiple shops handled by multiple shops change have lower cost of business. rapidly, the management may have (vii) Flexibility: Under this system, to sustain huge losses because of if a shop is not operating at a profit, large stocks lying unsold at the the management may decide to close it central depot. or shift it to some other place without really affecting the profitability of theifference between Departmental organisation as a whole. stores and Multiple shops Although both these types of retail Limitations organisationsarelargeestablishments, (i)  Limited selection of goods: there are certain differences between Some of the multiple shops deal only the two. Such differences are given in limited range of products. This is here below: especially the problem with the chain (i) Location: A departmental store stores which are owned and operated is located at a central place, where by manufacterers, and as such mostly a large number of customers can be sell the products produced by the attracted to it. However, the multiple themselves. They do not sell products stores are located at a number of Reprint 2026-27