There are certain advantages and disadvantages of chain store system:
Advantages:
(i) Lower selling price, due to economies of bulk-buying, operations, etc.
(ii) Economies in advertising – Common advertisements covering all the units are feasible and this reduces expenditure.
Disadvantages:
(i) Inflexible in practise – Multiple shops deal in standardised products only. It creates inflexibility in providing wide variety of products.
(ii) Various customer services like home delivery, credit facility, product on demand etc. are unavailable in chain stores.