Features of a Departmental Store:

A departmental store provides various facilities such as restaurant, travel bureau, telephone booth, and restrooms. They try to provide maximum service to higher class of customers for whom price is of secondary importance.

These stores are generally located at a central place in the heart of a city, catering to a large number of customers. Due to their large size, they are formed as a joint stock company managed by a board of directors, with a managing director assisted by a general manager and several department managers.

A departmental store combines both the functions of retailing as well as warehousing. They purchase directly from manufacturers and operate separate warehouses, helping eliminate undesirable middlemen between producers and customers.

Differences from Multiple Shops:

Departmental stores aim at satisfying all needs of customers under one roof with variety of products, while multiple shops satisfy requirements relating to a specified range of products only. Departmental stores provide maximum services like alteration of garments and restaurants, whereas multiple shops provide limited service confined to guarantees and repairs.

Regarding pricing, multiple shops sell goods at fixed prices with uniform pricing policies, while departmental stores occasionally offer discounts to clear stock. Departmental stores cater to high income groups who value services, while multiple shops cater to different types of customers including lower income groups. Departmental stores may provide credit facilities to regular customers, but multiple shops operate strictly on cash basis.