Multiple shop

Multiple shop

• located in busy shopping centres
• a shop with several branches e.g Edgars
• all branches have similar shop fronts and use same name for easy recognition
• all branches have similar layouts
• sells narrow range of products or one line products
• all branches are controlled from the Head Office
• each branch has a branch manager
• head office buys goods in bulk for all branches from manufacturers at reasonable prices  and favorable trade discounts
• branches benefit from economies of scale
• has own warehouses and transport facilities
• all branches sell at same prices
• quality of goods is the same in all branches
• goods usually sold at low prices
• stock and staff can be transferred from one branch to another
• may offer credit facilities
• accounts may be transferred to any branch
• all accounts are controlled from the Head Office
• Head Office advertises for all branches as advertising benefits all branches leading to low advertising costs for all branches
• overhead expenses are spread since branch pays for its rentals, rates, water and electricity
• customer can return goods at any branch
• losses made by one branch can be shared by all the other branches
• can manufacture their own products for example Bata

Variety Chain

• has characteristics and features similar to the above but offers variety for example OK and TM