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Fashion Retailing and Visual Merchandising

Department stores are large retail establishments that sell a wide variety of products organized into different departments. They offer consumers the convenience of shopping for various goods under one roof. Department stores can be classified based on ownership - chain stores are centrally owned and operated, while independent stores are owned by a single financial entity. Key advantages of department stores include bulk purchasing power, ability to offer services like delivery, and potential for advertising to drive sales. However, their large size also brings limitations such as high operating costs and potential for customer service issues.

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Jaswant Singh
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92 views

Fashion Retailing and Visual Merchandising

Department stores are large retail establishments that sell a wide variety of products organized into different departments. They offer consumers the convenience of shopping for various goods under one roof. Department stores can be classified based on ownership - chain stores are centrally owned and operated, while independent stores are owned by a single financial entity. Key advantages of department stores include bulk purchasing power, ability to offer services like delivery, and potential for advertising to drive sales. However, their large size also brings limitations such as high operating costs and potential for customer service issues.

Uploaded by

Jaswant Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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FST645

FASHION RETAILING AND VISUAL


MERCHANDISING
Different formats of Retailing

• Department Stores

• Department stores are large stores which sell different types of products
under one roof in different departments. Each department has
an individual specialization of merchandise. Each store is handled separately
in accounting, management, and location.
• Therefore, a department store handles different business units and deals with
a variety of merchandise and are organized in different departments for the
purpose of accounting control, sales promotion, and store operations.
• The latest trend in department stores is to add departments for sports and
recreational equipment and automotive along with providing services like
travel advice, insurances, and income tax preparations, etc. Department
stores can also be referred to as shopping centers
Departmental Store
Classifications of department stores

• On the basis of ownership – There are three types of a


department store on the basis of ownership
• The ownership Group – Ownership group stores are
dependent formally but are combined.
• The independent – This type of department stores is
owned by the financial interest which does not own any
other similar stores.
Classification
Types of Department stores

• Chain Department Stores – This type of stores is owned


and managed centrally.
• On the basis of income groups – These stores are
designed to serve people with high- and middle-income
groups. These stores sell high-quality goods and provide
first class services to its customers. there are also stores
which are designed to cater to people with low income
such as dollar stores.
• Leased department stores – The stores whose
operations are given out on lease are called leased
department stores.
features of Department stores:

• Merchandises are arranged in different departments in the


same store.
• Department stores are integrated stores which perform
operations.
• department stores are distinguished by the nature of
goods sold by them, not by the variety of goods sold by
them like drug and variety store.
• Department stores are designed horizontally in order to
provide different merchandises under the same roof.
Location of Department stores

• Special consideration should be taken into consideration


before choosing the location of a department store. the
store should not only provide merchandises only but it
also should provide various amusement facilities, facilities
in dine-in, and parking, etc.
Advantages of Department stores
• Department stores usually buy products in bulk which gets considerable
discounts. in addition to this, department stores buy directly from the
manufacturer therefore, it eliminates any middleman charges results in high
profits.
• Department stores were a big business are in a position to pay for goods being
purchased. In this way, quality goods can be purchased on much cheaper rates
and also merchandise of the latest style and design can be obtained to be sold
in stores.
• Department stores attract customers because of the convenience offered by
them for people of all classes.
• Because of its large scale of business expert supervision can be provided for
each department. In addition to this, various services like liberal credits, expert
assistance for shopping, and delivery services can be provided to customers.
• Department stores can afford to spend on advertising to lure customers to buy
more. For example, within department stores, various discount and offer
advertisements are placed to make customers purchase more than they plan to
buy.
Limitations of Department stores
• It is very expensive to run a department store as it includes various expenses.
For example, a large number of salespersons are needed to handle different
departments and cash counters.
• Because of its large size, personal touch and interaction with customers are
missed. Which is not a problem in single line stores.
• As area required to establish these stores is large, they are usually set up on
the outskirts of a city. Hence, these are not much beneficial for the customers
as they have to buy urgently required goods from the nearby traders.
• As the whole control is in the hands of employees such as store managers
there are high chances of leak and loss.
• Many times customers take advantage of “customers are always right” policy.
• it has been observed that in many stores poor salesperson service is
provided because of the low payments given to them.

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