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- Disadvantages of chain stores include12:
- Inflexibility in practice
- Need for a heavy amount of capital
- Heavy loss on change in demand
- Lack of credit facilities
- Lack of personal services
- High operational costs
- Centralized direction and rigidly standardized operating procedures, which tend to limit individual selling units’ flexibility and hinder useful innovations
- Fewer customer services than individual stores
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The disadvantages of owning a chain store are:
- Inflexible in practice.
- Need for a heavy amount of capital.
- Heavy loss on change in demand.
- Lack of credit facilities.
- Lake of personal services.
byjus.com/question-answer/what-are-the-disadvant…The main competitive disadvantage of chain store organizations is their centralized direction and their rigidly standardized operating procedures, which tend to limit individual selling units’ flexibility and hinder useful innovations. Chain stores also tend to offer fewer customer services than individual stores.www.britannica.com/money/chain-store - People also ask
Chain Store: Definition, Types, Advantages and Disadvantages
Disadvantages. Chain stores can cause local shops or independent businesses to go out of business because they cannot compete with the lower prices and extended hours of chain stores. Chain stores can contribute to the decline of downtown areas because they are often located in suburban areas. See more
Definition: A chain store is defined as a retail outlet of a larger firm that sells the same or comparable goods as other retail outlets of the same … See more
Chain proliferation is the expansion of a retail chain through the opening of new locations. Chain stores are able to grow rapidly because they … See more
- 1. Business Chains
- Business chains are retail outlets that are owned by the same company. For example, Gap Inc. owns Old Navy, Ban…
- 2. Franchises
- A franchise is a type … See more
Chain stores are a type of formula retail, but not all formula retailers are chain stores. A key difference between the two is that a chain store is part of a larger company and sells the same or similar products as other … See more
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