Free Complete Course: Chapter 11.41 - Limitations of Departmental Stores - Class 11th Business Studies
Internal Trade
In this video we'll learn about - Limitations of Departmental Stores, its various aspects and how it affects you. This video continues the series, Class 11 Business Studies Chapter - Internal Trade.
Class 11 Business Studies
Chapter: Internal Trade(Limitations of Departmental Stores)
Useful For: NCERT / CBSE / MAT / CAT / CMAT / IIFT / SNAP / XAT
Previous Video: Advantages of Departmental Stores:
Next Video: Multiple Shops or Chain Stores:
Lack of personal attention: Because of the large-scale operations, it is very difficult to provide adequate personal attention to the customers in these stores.
High operating cost: As these stores give more emphasis on providing services, their operating costs tend to be on the higher side. These costs, in turn, make the prices of the goods high. They are, therefore, not attractive to the lower income group of people.
High possibility of loss: As a result of high operating costs and large scale operations, the chances of incurring losses in a departmental store are high. For example, if there is any change in the tastes of customers or latest fashions, it necessitates selling of such out-of-fashion articles in clearance sale, to reduce the huge inventory of goods built up.
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