Departmental store is a large-scale retail organisation having a number of departments under one roof. Each department specialises in one particular

kind of trade. All these departments are centrally organised and are under one united management and control.

Advantages:

(i) Shopping convenience: A departmental store enables the customers to purchase all their requirement under one roof and the customers need not go from one shop to another for making purchases. This provides great

convenience to the customers and also saves their time and labour.

(ii) Wide Choice: The departmental store keeps a large variety of products and hence offers an opportunity to the customers to select goods of their liking from a large stock of goods of different qualities, brands, designs, colours, styles, etc.

(iii) Economies of large scale: Departmental stores, being large-scale establishments, enjoy all the economies and benefits of large-scale organisations. This reduces their costs and increases the profits.

Disadvantages:

(i) Distance: As the departmental stores are generally located in the central places, people living at a distance cannot take advantage of the departmental stores.

(ii) High Cost of Operation: The cost of doing business is very high in case of departmental stores as they have to pay high rents, salaries to staff and spend much on various facilities provided to the customers.

(iii) Higher Prices: Due to high costs of operation and establishment, the prices of commodities in departmental stores are comparatively high. Thus,

only the rich people can afford to take advantage of the departmental stores.