A chain store is a group of similar retail shops that sell the same type of goods. All these shops or branches are under the control of the head office. Branches are opened in different parts of the city or even in different parts of the country.
Chain stores specialize in a particular product. The same product is offered in different varieties and in different models.
Thus, while a departmental store draws customers to it, chain stores approach the customers. This is done by the opening of branches in all parts of the country. ‘Bata Shoe Company’ is a good example of a chain store. ‘Arun Ice-Creams’ is yet another example.
Another advantage of the system of chain stores is that it eliminates the wholesalers totally. It establishes direct contacts with the buyers.
Advantages of Chain Stores
1. Chain stores specialize in a particular product.
2. Such stores can cater to the needs of people in different localities.
3. Central location and luxurious premises are not required for chain stores.