What Are The Disadvantages Of Departmental Store?

Along amongst advantages, the departmental store besides convey for sure drawbacks or limitation which both customers every bit good every bit the owners convey to endure.

1. Departmental store needs higher operating costs

The cost of running a departmental store is really high. Since a departmental store is centrally located the rent for the edifice is really high. It besides offers personal services too facilities, spends to a greater extent than on advertising too gives a high salary to skilled employees. All these expenses growth the overhead expenses of a departmental store.

Image Credits © Kenmore Undressed

2. Departmental store is hard to supervise

A departmental store has many departments amongst a large position out of selling units. Effective co-ordination, supervision too command of all the departments may non endure ever possible. This may due to a shortage of qualified staff. Without a squad of professional person staff, it creates problems of effective supervision too command over the operate of employees.

3. Departmental store ever needs huge capital

A departmental store has many departments dealing inward dissimilar lines of products, since it aims at selling everything nether 1 roof. Such a large retail organization ever requires a large total of uppercase to continue occupation concern running.

4. Departmental store maintains high prices

Generally, the prices of goods sold inward a departmental store are higher than those inward the other pocket-size retail shops.

5. Departmental store don't render all goods

Departmental stores are non capable of conducting all types of retail business. They render for sure varieties of goods. It is physically impossible for them to render all varieties or kinds of goods.

6. Departmental store has to bargain amongst thefts

In large stores, at that topographic point are chances of shoplifting, robberies, misuse, etc. The thefts tin endure committed yesteryear customers every bit good every bit yesteryear staff members.

7. Departmental store gets depression client feedback

Departmental stores offering services to a large position out of customers. The salesmen inward the stores, existence salaried staff tin hardly plough over personal attending to all customers. Due to lack of contact amongst the customers, their feedback may endure really depression or sometimes may non endure possible.

8. Departmental store needs services of specialists

Departmental store requires services of specialists to excogitation too to care the store. However, it is hard to appoint too keep specialists.