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Department stores and chain stores are two different concepts. Department stores have a long history of offering a wide variety of goods for retail sale, while chain stores are retail outlets in various locations under the same brand and management.
While many department stores are chain stores, the opposite is not true. There are many chains such as restaurants and specialty stores that are not considered department stores. Macy’s department store on Herald Square in New York City is one of the best-known department stores that is also part of a chain.

Definition of a department store
A department store is typically a large retail establishment that offers a wide variety of merchandise organised into separate departments. Merchandise featured in department stores is generally clothing for men, women and children; jewellery and accessories like handbags, belts and scarves; shoes; and cosmetics. Some department stores carry small appliances for the home, electronics, sports equipment, toys and furniture. Many department stores are part of a retail chain with stores in multiple locations.

Pros and cons of department stores
The department store is the precursor of the modern shopping centre. Shifting populations from rural areas into urban centres fostered the rise of department stores in the mid-1850s. To accommodate large numbers of shoppers, move goods and manage heat, water and light, engineers and architects developed the idea of the modern skyscraper.

The philosophy for both the department store and the contemporary shopping centre is that shoppers should be able to find whatever they need under one roof. To further accommodate shoppers, department stores offer restaurants, restrooms, home delivery, gift wrapping and purchase on credit. For many shoppers, the conveniences of department store shopping far outweighs the disadvantage of manoeuvring through large stores with an abundance of merchandise.

Definition of chain stores
Chain stores are retail outlets in multiple locations that share a brand and central management. They usually feature standardised business methods. Some chain stores are branches owned by one company, while others are franchises owned individually. Some features common to chain stores include centralised marketing and purchasing, resulting in lowered cost to the consumer and higher profit for the store.

Pros and cons of chain stores
Chain stores began in the middle of the 19th century with the establishment of the Great Atlantic & Pacific Tea Company, also known as A&P, in New York City. Woolworth and J.C. Penney soon followed suit. Today, Walmart is the largest chain store.

While the capability of chain stores to buy in volume can lower prices for the consumer, some people criticise chain stores for promoting a generic nationwide “homogenisation” of the culture by making so many stores the same. Others feel chain stores contribute to suburban sprawl. Some consumers enjoy the increased variety and reduced uncertainty provided by chain stores. — smallbusiness.com.