The limitations of departmental stores are as follows:
1. Lack of personal attention: Large size of the store
makes it difficult to provide adequate personal attention to the customers.
2. High possibility of loss : Due to large-scale
operations, the possibility of losses are high in these stores. For example, in case of change in fashion, the store has to sell the out-of-fashion goods in clearance sale at heavy discounts.
3. High operating cost : Because of the various services offered by ttte store to its customers, the operating cost is high. High operating cost increases the price of the goods and hence these stores are not attractive for lower income groups.
4. Inconvenient location : Since these stores are centrally located, it is not convenient for the purchase of goods required immediately.