The multiple shops have certain advantages. The important ones are as follows:
1. Multiple shops being owned by manufacturers eliminate all kinds of middlemen between the producer and the consumer. Goods are manufactured on a large scale and are sold to consumers through own retail organisations. As a result, the prices charged to consumers are reduced to a considerable extent since middlemen’s charges are eliminated. Ultimately, consumers get goods comparatively at a cheaper price.
2. These types of organisations specialise in selling certain products excessively and therefore achieve expertise in that particular line of product.
3. Advertisement of multiple shops are centralised and can be carried out on a large scale. Besides, every branch of a multiple shop acts as an advertisement for other branches. Once a customer is satisfied with the service provided at one shop (branch), he is confident and sure to get the same at another branch as well. Thus, buyer’s preference is gained for all shops and each branch is an advertisement for other branches.
4. Uniform selling price (fixed price) of goods at all centres (branch shops) helps in winning public confidence.
5. Multiple shops enjoy advantages of decentralised selling. In case one or two branches are closed or incur losses, it hardly affects the overall profitability of the organisation.
6. Customers are assured of fresh stock of goods because of quick turnover in multiple shops.
7. The producer sells directly to the customers through multiple shops. As a result, customers are able to get qualitative, genuine and standardised goods. The question of duplicate or inferior quality goods does not arise at all.
8. Through the operation of multiple shops, producers are able to establish direct contact with customers. As a result, they can easily study the taste and likings of the customers and accordingly adjust the production plan. Similarly, this system enables the producer to receive feedback from the customers regarding complaints, suggestions and defects of the goods directly.
9. Uniform window display and shop decoration at all shops makes multiple shops’ branch identification quite easy.
10. Sales of multiple stores are made strictly on cash basis. Even if the manager wishes, he cannot grant credit. Therefore, the possibility of outstanding and bad debts does not arise at all.
11. Convenience in shopping is provided to customers as branches are located in all the important localities (in central localities in the most popular and busy junctions). Customers, therefore, are no longer required to travel long distances for making purchases.