Departmental stores are retail establishments offering a wide range of consumer goods in different product categories known as departments. They are large in size and are normally located centrally located. They offer a wide range of goods that are arranged attractively hence attracting customers to buy them.
They do extensive advertising and they normally need specialized services for them to run hence they offer quality services to their customers.
Pros of Departmental Stores
- They do advertise their goods
They advertise their goods hence it is easy for the customers to know the goods they are offering and how they can use the goods. This makes them make a lot of sales as the consumers will be aware of the goods they are offering.
- Helpful to customers in making selection
Departmental stores offer assistance to customers when it comes to the selection of the goods they need and this makes the customers not do impulse buying as they will only get what needs from the stores.
- They offer after-sale services
They offer after-sale services to their customers. They offer all the information that a customer needs on the products the customer has bought hence they make the customer have trust in the business hence keeping the customer for a long time.
- Standard goods
The stores sell standard goods to their customers hence they make the customers develop trust in them which will motivate the customer to keep on going for the goods from the store.
- They stock goods in large quantities
The stores buy goods in bulk and this makes them lower their prices. This attracts customers and makes them not to have doubts about getting the number of goods they need.
- Provide a variety of goods
The stores stock a variety of goods and this makes it easy for customers to do shopping from the stores as they will get all they want under one roof.
Cons of Departmental Stores
- Requires a large amount of capital
To start a departmental store needs a huge sum of money as it is to be stocked with a variety of goods in large quantities. It also needs a large area to arrange the goods that are to be sold.
- Centrally located
They are mainly centrally located and this may make it inaccessible to some people which will make them only enjoy the sales from the people around them.
- Do not offer credit facilities
They do not offer credit facilities to their customers hence it is not possible for someone who does not have enough money to purchase goods from the stores which are disadvantageous to the customers.
- High prices
Their goods are normally sold at relatively high prices hence this discourages a lot of customers from purchasing their goods in the stores hence may affect their sales.
- Social discrepancy
They are social discrepancy when purchasing goods from departmental stores as they will only accommodate those people who can manage their prices.
Departmental stores are mostly preferred by those people who live near them and they have a good amount of money to spend on them as the prices on their goods are relatively high.