Department Store – Objectives, Advantages and Disadvantages

Objectives of Department Stores

Provide high-quality consumer products to the goods wherever they are at a lower price than the current market rates.

Maintain the highest degree of customer demand satisfaction possible.

Develop and implement growth strategies to enhance and sustain organisational efficacy.

Periodically analysis and assess the diverse long term needs and aspirations of defence timely measures to meet them.

Produce a reasonable profit in order to support the organization, allow for development, and provide additional features for their families.

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Evolution of the Department Stores

In 1838, Aristide Boucicaut opened the Bon Marche store in Paris, which evolved into the first department store by 1852, displaying a wide variety of goods in “department” under one roof at a fixed price, no haggling or bargaining, with a “money-back guarantee” allowing exchanges and refunds, employing up to 4000 people with daily sales of $300,000.

In 1848, Alexander Stwart constructed the Marble Palace at Broadway and Chambers Street in New York City a much bigger version of his try goods shop at 283 Broadway that he opened in 1823.Stewart constructed a real department store on Broadway in 1862, with 8 floors on 2.5 acres and up to 2000 workers. Among the 19 divisions were “silks” and “dress goods,” as well as toys and sports.

By 1890 a new world of retailing had been created as department stores had a clear market position as universal providers. General stores eventually became department stores as small towns became cities. Because of its size it required new building materials, glass technology and new heating, amongst other architectural innovations.

Structure of the Department Stores

The organisational framework of a department store will differ depending on the size and nature of the company.

Smaller stores may combine many sectors under one section, whereas bigger stores establish separate divisions for each purpose, as well as multiple layers of management.

A small shop may group all of its workers under the heading shop Operations. A big department store might have a full team that includes a manager, a deputy manager, and sales associates for each section.

Types of Department Stores

Upscale Department Stores: These stores are alike with traditional department stores, but they specialise in high-end products and designer collections. They may provide more personalised services and have a more luxurious ambiance. The sales of brand name perfumes and beauty supplies like Burberry, Calvin. General sale of name brand clothes above average price level, such as Dior, Versace.

A midrange department store is a retail shop that sells apparel, footwear, accessories, makeup, household products, and technology, with a focus on quality and price.

Discount department stores specialise in providing lower-priced products than traditional department shops. They are a usual choice for customers who want to save money while still receiving the products they need. commonly have central customer checkout areas, generally in the front area of the store.

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Advantages of the Department Stores

Department stores create a supply and through advertising people learn that they require what the department store is offering. These shops are social entities that influence popular culture in general.

Department stores sell a broad variety of goods in one location, making it easy for customers to locate what they need without having to visit multiple stores.

Department stores frequently run deals and discounts, allowing consumers to save money on their purchases.

Department stores generally stock a wide range of products, including apparel, accessories, home goods, and technology, providing consumers with a wide range of choices.

Different department stores reflect different kinds of spending. Both upscale and discount shops offer a variety of consumer-oriented goods. An upscale shop may sell higher-quality, more costly items, whereas a discount store sells lower-priced items.

Disadvantages of the Department Stores

One of the biggest criticisms to department stores is their treatment of their own workers. Many department shops are hostile to labour groups. Some do not require a certificate of living wage, bringing into question the wages that some laborers are making. Many retail shops become a sore point about child labour. It was claimed that minors skipped breaks, worked late and into the night, and went beyond their legal hours. Religious, ethnic, and national prejudice have also tarnished department store images.

Department stores frequently use high-pressure sales techniques to tempt customers to buy, such as limited-time deals and “buy now” promos. Some individuals may find this to be a stressful purchasing experience.

Department stores find open areas of untouched land and set up their stores there, damaging the ecosystem and the environment through store practises and the influx of automobiles and garbage. Department stores have also established stores near religious or historical sites, leading some consumers to complain that department stores only worry about maximising earnings by attracting as many people as possible.

Department stores, due to their large scale and emphasis on sales, can sometimes feel impersonal and overpowering, making it difficult to receive personalised attention or assistance from staff.

Department shops have been charged of predatory pricing on occasion. This method involves selling goods at a much lower price than other independent shops in the region in order to close them down. This is viewed as a monopolisation of the department store sector, limiting shop selection to a few large chains rather than an abundance of smaller, individually owned stores.