A multiple shop system is generally established as a joint stock company. The authority and control of the organisation are vested in the Board of Directors and Chief Executive of the company.

They lay down the broad policies and programmes of the company. The head office consists of several departments such as purchasing, selling, warehousing, finance and accounts, advertising and publicity, etc. Different shops are grouped into regions.

A regional sales manager is responsible for the coordination and control of all the shops within his region. There are several areas or zonal sales managers under each regional manager. Every shop is under the charge of a shop manager who operates it with the help of salespersons and sales assistants.

Every shop is supplied goods from the central or regional warehouse. It sells goods accord­ing to the prices and other terms and conditions fixed by the head office. Each shop deposits the daily sale proceeds into the bank account. It sends a periodical return of sales and expenses to the head office.