Question

A store carries a wide variety of products such as clothes, furniture, and housewares, usually at higher prices than discount stores.

Answer 1

A store with a wide variety of products, usually at higher prices than discount stores is called a department store.

What are the advantages of a department store?

As this business configuration focuses on the sale of a variety of products that are easily marketed, the greatest advantages are the variety of products that generate consumer convenience, in addition to reduced advertising costs and economies of scale.

The disadvantages of a department store are related to the need for a high amount of capital to operate the business, in addition to promoting little personal contact with the end customer. But if organizational resources are well managed, this business structure can be very profitable.

Therefore, department stores are a trade whose focus is on the sale of varied products at a more competitive price and quality service, generating convenience and reliability for the consumer.

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