The limitations of multiple shops are as follows :
- Limited selection of goods : These stores sell range of goods produced in their organisations only. Thus, they offer limited choice of goods.
- Lack pf personal touch : Sometimes, indifferences and lack of personal touch arise in the employees due to lack of incentives.
Problems of change in demand: The management has to bear heavy losses when the demand for their goods changes rapidly. This is because a large amount of stock remains unsold at the central office.
- Lack of initiative : The branch managers are required to follow the instructions received from the head office. Thus, they become habituated of seeking the guidance of head office in all matters. This kills their initiative to make use of their creative skills.