Is departmental store profitable in India?

Statistics show that a department store of an average size of 2000sq. ft sees a daily profit of about 3000 rupees, a profit margin of about 7\% on sales of about Rs. 40,000. Eventually, this adds up to about 60 to 90 thousand in profits every month.

What are the advantages and disadvantages of a department store?

As a Departmental Store is operated large scale and many facilities are provided to the customers, it increases overheads of the store considerably. In addition to it, a Departmental store stresses upon advertisement, sales promotion, proper display, and decoration, etc. It also increases its overheads.

Is it profitable to open a departmental store?

A department store with an average floor space of 2000 square feet earns a daily profit of approximately 3000 rupees, with a profit margin of around 7\% on sales of around INR 40,000, according to data. This adds up to INR 60,000 to INR 90,000 in monthly profits over time.

What are the disadvantages of departmental stores?

The main demerits or disadvantages of departmental stores are as follows:

• Large investment of capital. Large amount of capital is required to operate departmental store.
• Limited number of customers.
• Lack of personal contact.
• High operational expenses.
• Unsuitable location.
• Difficulty in management.

What is the cost to open department store?

The best location combines visibility, affordability and lease terms you can live with. In particular, a departmental store is more successful in newly developed areas. The rent for a place can be as small as Rs 10,000 to Rs 10 lac depending upon the city, location and size of the departmental store.

How can I open a departmental store in India?

1. 5 Steps to Start a Departmental Store. Here are the crucial steps for starting a departmental store:
2. Analyse the plan.
3. Register your Business.
4. Choose the Location.
5. Figure out the Investments.
6. Find the local Suppliers.
7. 5 Secrets to Increase your Profit in a Departmental Store.

What are the advantages of departmental store?

Top advantages of a departmental store are: (1) Economies of Bulk Purchases (2) Providing Variety of Products (3) Convenience of Choice (4) Economy in Advertising (5) Centrally Located (6) Providing Services to Customers (7) Employing Specialists and (8) Lesser Selling Costs.

How do department stores make money?

Retail is a service industry, and retail stores make money by providing the service of making merchandise available for customers to buy conveniently. Retailers do not have to be manufacturing the goods themselves, although some retailers do design and sell their own private label merchandise.

Why are departmental stores not popular in India?

Departmental stores have not been popular in India. It cannot be opened in remote villages or small towns. They require huge capital and high managerial talents, which is lacking in India.

How do I start a small department store?

What is requirement for departmental store?

The rent can range from Rs 10,000 to Rs. 10 lacs depending upon the size of the store and the city. However, you may require a minimum of 1000 sq ft. area for the departmental store.

What are the advantages of a departmental store?

A departmental store enables the customers to purchase all their requirement under one roof and the customers need not go from one shop to another for making purchases. This provides great convenience to the customers and also saves their time and labour.

What are the disadvantages of departmental stores in India?

The various disadvantages of departmental stores have been responsible for their less popularity in India. They are best suited for the advanced countries where there is no dearth of capital and rich persons. Departmental stores require a large amount of initial capital investment for their establishment and there is a dearth of capital in India.

How to start a departmental store?

Departmental stores require huge capital for their establishment. Spacious building in a convenient location is also essential for its success. So, an enormous amount of fixed capital is sunk in the form of its premises. Apart from loan from banks, funds may have to be mobilized from private sources.

Why does one department advertise for the other department?

The advertisement of one department is the advertisement of the other departments also. A customer who enters a departmental store to purchase some goods is induced to buy some other goods also displayed in the store. Hence, one department advertises for the other.