A supermarket is a retail organization which sells a large variety of household goods based on self-service.

It is a large-scale retail establishment where a variety of consumer goods are sold based on low prices and self-service.

A supermarket may also be defined as a large retail shop where people can select and buy household goods by themselves.

Supermarkets are mostly located in central locations in the city and they often have branches near residential areas.

The purpose of supermarkets is to sell goods of daily necessity to the general public at an affordable price.

Supermarkets typically sell a wide range of household items, including groceries, kitchenware, and food storage containers.


Please note that the supermarket is also called super Bazaar. Bazaar is the Hindi word for market.

So, when you say super Bazaar, you are saying supermarket.

Characteristics of Supermarket

1. Offers a wide variety of goods: Supermarkets deals in a variety of household goods such as grocery, beverages, kitchen utensils, and medicines.

2. Self-services: In supermarkets, items with price labels are arranged on racks

To shop for goods, a consumer will move across different sections of the supermarket to pick up goods as per his requirements.

After selecting the goods of their choice, the consumer will bring his trolley to the cash counter, where he will make payment and then take home the delivery.

As a result, supermarkets operate under a self-service principle.

3. Low price: Because supermarkets have low operating expenses and buy in bulk, their prices are generally less expensive when compared to those of department stores and other forms of large-scale retail trade.

4. Cash basis: In general, supermarkets do not provide credit facilities. They only allow customers to take goods if they pay in full, hence they operate on a cash and carry basis.

5. They have parking spaces: Since so many people visit supermarkets to buy the household items they'll need for a month, they must bring their cars

Supermarkets offer parking spaces where customers can leave their vehicles while they shop.

6. Reduced sales overheads: Because supermarkets operate on the self-service model, they employ fewer salespeople than department stores, which employ many.

Supermarkets, therefore, have reduced sale overhead costs as they only need to employ salesman at the counter.

7. Small profit margin: Supermarkets typically purchase products in bulk from manufacturers and sell them to customers for low prices, resulting in a low-profit margin.

Advantages of supermarket

1. Offer variety to consumers: Supermarkets provide consumers with a variety of options of goods from which to choose.

A consumer can find different brands of goods thanks to supermarkets. Different brands of goods in one place allow the consumer to compare and select the best brand of a good.

2. Low overheads: Supermarkets have low overhead costs as they do not need to employ many sales assistants.

A supermarket is not required to hire salespeople, except those who will inspect goods at the counter.

3. Enjoys economies of scale: Supermarkets enjoy economies of scale as they can buy goods in bulk and reduce the average cost of transporting goods from the manufacturer's shop to their shops.

In short, a supermarket gains economies of scale due to bulk purchases because it cost less to transport many items to the shop than it is to transport a few items.

4. Offers low prices to consumers: Due to the elimination of middlemen and economies of bulk purchasing, supermarkets can sell goods at lower prices to consumers.

As a result, supermarkets allow low-income earners to purchase goods at lower prices

5. No bad debts: A supermarket eliminates the risk of bad debt by only selling on a cash basis to consumers

Disadvantages of Supermarket

1. Huge capital requirements: To open a supermarket, one must rent or buy a building and stock it with a variety of goods.

You will agree with me that all of these costs a lot of money to start.

2. No personalized service: As earlier noted, supermarkets operate on the self-service model.

Customers, therefore, receive no personalized care in supermarkets.

As a result, supermarkets cannot stock goods that require personalized care.

3. No credit facility: Since supermarkets do not provide any sort of credit facility, low-income consumers find them to be very less appealing.

4. No home or after-sale services: Supermarkets do not provide home or after-sales. 

They are therefore inappropriate for technical goods like solar panels, which need installation advice from the seller.

5. Possibility of goods spoilage: Because supermarkets deal in perishable goods, they may experience product spoilage, particularly if the products are not sold in a short period.

This increases the cost of operation of supermarkets.

Executive Summary 

A supermarket is a large retail establishment which sells household goods on a self-service basis.

A supermarket has different characteristics such as self-service, low prices, cash-only sales, and parking spots. 


The advantages of a supermarket are that it provides a wide range of goods to consumers, enjoys economies of scale, and has low operating costs when compared to a departmental store.

The supermarket has a few disadvantages, namely; huge capital requirements, unsuitable for goods of technical goods, and goods may get spoilt if they are not sold on time.

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