Chain stores
Topic: Tertiary, Quaternary and Quinary Activities · NCERT: Class 12, Ch 6 "Tertiary and Quaternary Activities"
Meaning
Chain stores are many retail stores owned and run by one company. Because they buy in very large amounts, they can buy goods at the lowest cost. Sometimes they even get goods made to their own design. They employ highly skilled executives to manage the business. They can try out a new idea in one store and, if it works, use it in all their stores.
Example
D-Mart is a chain of supermarkets with stores in many Indian cities, all run by one company. It buys goods in bulk and sells some products under its own brand.
Don't confuse with
- Departmental stores: a departmental store is one large store with many sections under one roof. A chain store business is many stores spread across different places.
- Consumer cooperatives: these are owned by their customer-members. Chain stores are owned by a company.