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(c) As the size of these stores is very large, they are generally formed as a joint stock company

managed by a board of directors. There is a managing director assisted by a general manager

and several department managers.

(d) A departmental store combines both the functions of retailing as well as warehousing. They
purchase directly from manufacturers and operate separate warehouses. That way they help in

eliminating undesirable middlemen between the producers and the customers.

(e) They have centralized purchasing arrangements. All the purchases in a department store are
made centrally by the purchase department of the store, whereas sales are decentralized in

different departments.

Advantages

The major advantages of retailing through departmental stores may be listed as follows:

(i) Attract large number of customers: As these stores are usually located at central places,

they attract a large number of customers during the best part of the day.

(ii) Convenience in buying: By offering large variety of goods under one roof, the departmental
stores provide great convenience to customers in buying almost all goods of their requirements

at one place. As a result, customers do not have to run from one

place to another to complete their shopping.
(iii) Attractive services: A departmental store aims at providing maximum services to the

customers. Some of the services offered by it include home delivery of goods, execution of

telephone orders, grant of credit facilities and provision for restrooms, telephone booths,

restaurants, saloons, etc.

(iv) Economy of large-scale operations: As these stores are organized at a very large scale, the
benefits of large scale operations, particularly, in respect of purchase of goods are available to

them.

(v) Promotion of sales: The departmental stores are in a position to spend considerable
amount of money on advertising and other promotional activities, which help in boosting their

sales.