1.

State the merits and demerits of department store.

Answer»

Merits of Departmental store are:

1. As it purchased goods in large quantities, it enjoys the advantages of bulk buying. 

2. As it sells many varieties of goods, it provides a wide choice in the selection of goods. 

3. As it deals in a large number of goods, the customer are able to make all their purchases at one place.

Demerits of Departmental store are:

1. As it is located in the centre of the city for away from the residential areas, it is not easily accessible to the customers. 

2. In a department store, there is no personal-contact between the owners and the employees, and between the employees and the customers. 

3. As the articles sold by a department store are generally luxuries, it, generally, serves the rich, and not the masses. Therefore. It cannot have a large number of customers.



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