(a) Define a multiple shop
(b) State three features of a multiple shop
(c) Explain three advantages and three disadvantages of a Multiple shop.
Explanation
(a) Definition of multiple Shop Multiple Shop: It consists of several shops located in different places selling one line of goods which centrally Controlled, owned and managed.
(b) Features of a Multiple Shop
(i) It has standard shop fronts in every location for easy identification.
(ii) Specializes in one line of good or related range of goods.
(iii) It is centrally owned and managed.
(iv) All purchases are done at the headquarters.
(v) It has price uniformity throughout the branches.
(c) Advantages of a Multiple Shop
(i) It enables manufacturers to retail their own products by owning their own retail outlet.
(ii) Staff acn be transferred from one shop/branch to the other.
(iii) Goods not moving in one shop may be transferred to another shop.
(iv) Their standard shop front makes them easily identified by customers.
(v) It minimizes sharp practices as prices are fixed by the headquarters for all branches. ( Bulk purchases leads to lower cost).
(vii) Promotional cost is spread among all branches