Chain Stores or Multiple Shops 

Multiple shop is a system of branch shops operated under centralised management and dealing in a similar line of goods. Branches are located throughout the nation.

Features of multiple shops 

1. It deals in one or two lines of products. 

2. All branches are dealing in similar goods 

3. It has centralized management and a unified system of control 

4. It eliminates middlemen. 

5. It works on cash and carry the principle 

6. It has centralized buying and decentralized selling. 

7. There is uniformity in operation in all branches. 

8. It deals with goods of daily use and durables.

Advantages 

1. It enjoys economies of bulk purchase because the goods for all branches are purchased by head office. 

2. There is no risk of bad debts because all sales are on a cash basis. 

3. The advertisements for all branches are done by the head office. So there is an economy in the advertisement. 

4. Multiple shops are located in towns and cities. They attract a large number of customers. 

5. All branches of multiple shops are uniform in style, design, and display of goods. 

6. All the branches sell quality goods at uniform prices. It creates public confidence. 

7. The economy in large scale buying, centralized management, etc. reduces the cost of operations.

8. Products having no demand in one branch can be transferred to another branch. It reduces business risk. 

9. Multiple shops enjoy the benefits of quick turn over because of countrywide location. 

Limitations 

1. The multiple shops deal only in a limited range of products. So consumers have very little choice.

2. They will not provide any credit facilities to consumers. 

3. There is a lack of personal touch between the company and consumers because branches are managed by salaried managers. 

4. The branch manager is only a salaried employee. He has no initiative to increase profits. 

5. As these shops deal in a limited line of goods, a fall in demand will affect the business.