Independently owned stores that band together to act like a chain is referred to as _________.

Question

Quizplus · Accepted Answer

A contractual system is a form of organized retail where independent retailers band together to form a cooperative retail organization to accomplish bulk purchasing, centralized warehousing, and to secure lower prices from manufacturers. This allows them to achieve economies of scale and some of the benefits of a chain without having to give up their independence. Franchises and corporate chains involve a more centralized ownership structure, while operative marketing systems and regional shopping centers refer to different types of retail environments.

Independently Owned Stores That Band Together to Act Like a Chain