Bata shop. Image credit Batashop.com.sg

Bata shop. Image credit Batashop.com.sg

ZIMSEC O Level Commerce Notes: Retail Trade: 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

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