A Departmental Store is a large fixed establishment which deals with a variety of products. Its features are explained below:

a. They are usually located in Central areas to attract a large number of customers.

b. They sell a wide variety of products such as electronics, furniture, footwear, medicine, garments, etc.

c. The goods are purchased directly from the manufacturer by the departmental stores. The role of middlemen is eliminated.

d. It also provides a variety of services such as restaurant and a separate section for the children's play area.

e. These are usually formed as a joint-stock company managed by the board of directors. There is a Managing Director assisted by a General Manager and department managers.

f. It combines the functions of retailing and warehousing. It purchases the goods directly from the manufacturers and stores them in separate warehouses.

g. They have a centralized purchasing system. Goods in the store are purchased by the central purchasing department of the store.

h. The sales are handled by the respective sections of the Departmental Store.

The differences between a Departmental Store and multiple shops is explained below:

a. Departmental Store is located at a central place to attract a large number of customers. The multiple shops are located at a number of places for approaching a large number of customers. They are located in different localities.

b. A Departmental Store provides a variety of goods under one roof to the customers. The multiple shops have a limited product range.

c. Departmental Store focuses on maximizing customer satisfaction by providing various services like a restaurant and restroom. The multiple shops do not offer such services but it provides a limited-service of guarantee and repaired if the goods sold cannot be defective.

d. The pricing policy of a Departmental Store is not uniform. They provide discounts on certain products to clear that stop. The multiple shops sell the goods at a uniform price.

e. The Departmental Store caters to the needs of the relatively high-income group. The multiple shops provide services to different types of customers including the lower-income groups as well.

f. The Departmental Store may often provide credit facilities to its loyal customers but this is not a service provided in the multiple shops.