Sometimes Producers

Sometimes producers open large number of shops in different places for sale of their own products directly to the consumers. These shops opened to sell directly own products are known as Multiple Shops. Under this type of trade, a single business owns a larger number of retail shops which are scattered over various localities of a country and all the shops are engaged in the same line of activities. The head office is situated at a place where goods are produced. The primary objective behind the establishment of multiple shops is to create market for the own products without the help of any middlemen. There are two types of multiple shops like manufacturer's retail stores and the middlemen multiple shops. The former multiple shops are engaged in both manufacturing and retailing of the products. The later shops do only selling jobs. It purchases from other producers and is engaged in selling through various branches. The best examples of Multiple Shops are Bata Shoe Company, Delhi Cloth Mills and the Khadi Pratisthana. These business houses are established as joint stock companies and are controlled by a Board of Directors through a managing Director or a General Manager. The branches are controlled by the branch managers. e.g. Bata,Liberty, Koutons, Singer Sewing Machine etc.

Multiple shops or chain store system is an organization in which two or more than two shops trade under one central ownership and management generally in goods of one king. In other words, it is a form of large scale retailing under the ownership and management of which there are various shops at different places selling on type of item.

* The prices of the product are fixed and as such there is no bargaining.

Advantages

* It always emphasizes on "Cash and Carry principle" and as such credit facilities are not allowed.

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