The difference between departmental and chain stores are as follows:- 

1. Departmental stores keep a wide variety of products to satisfy the requirement of all the customers whereas chain stores are specialized in only one line/brand of product. They deal with a limited range only.
2. Departmental stores offer both cash and credit facilities to their regular customer, whereas chain stores sell goods only on a cash basis.
3. Departmental stores are centrally located in big cities, whereas chain stores are located in different localities.
4. There is greater risk in departmental stores, whereas the risk gets spread over all the chain stores located in different areas.
5. Departmental stores attract customers belonging to the higher income group, whereas Chain stores attract customers from all income groups.