HYPERMARKET — MEANING, FEATURES, ADVANTAGES AND DISADVANTAGES

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A hypermarket is a large-scale retail establishment which sells a wide range of goods on a self-service basis.

It combines the characteristics of a supermarket and a department store.

A hypermarket is similar to a departmental store in the sense that it sells a wide range of goods under one roof.

A hypermarket is also similar to a supermarket because it operates on a self-service model.

A hypermarket is a supermarket with at least checkout points and 50,000 square feet of floor space dedicated to sales.

Hypermarkets are common in America and in certain European countries.

Features of Hypermarkets

1. Sells a wide variety of goods: Just like a departmental store, a hypermarket deals in different varieties of goods.

Hypermarkets offer the consumer a wide range of goods from which to choose.

They may sell books, food, drinks, clothing, footwear, furniture, electronics, and other items.

2. Location: Hypermarkets are typically found outside of towns due to the large space they occupied.

Hypermarkets are typically situated in a suburb to better reach a large number of people.

3. Bulk purchases: A hypermarket typically buys products from the manufacturer in bulk, just like other large scale retailers.

A hypermarket makes bulk purchases from a manufacturer in order to take advantage of economies of scale.

4. Based on the principle of self-service: A hypermarket operates on a self-service basis.

In hypermarkets, customers can pick up items on their own without the help of a salesperson.

5. Large size: Because of how they work, hypermarkets are typically very big and take up a lot of space.

A hypermarket is usually bigger in size than supermarket and can store a large number of goods when compared to a supermarket.

6. Provide convenience services: To improve the shopping experience for customers, hypermarkets generally offers restaurant services, ATMs, toilet, telephone line and free parking lot to consumers.

7. Display of goods: In hypermarkets, products are arranged in wooden bins, wire baskets, and metal racks.

Additionally, products include price tags to let customers know how much the items they want to buy will cost.

Hypermarkets showcase their products in a clean, well-organized manners to make it easier for customers to find and identify the items they want to purchase on their own

Advantages of hypermarket 

1. Variety of goods: Hypermarkets sell a wide range of goods under one roof.

As a result, they can satisfy all the customer needs under one roof.

The time and effort that the customer would have expended going from one place to another in search of goods are saved.

2. Provide convenience services: Similar to a department store, a hypermarket typically has convenience services like restrooms, ATMs, and restaurants to improve the shopping experience for customers.

Convenience service increases the quality of services customers get from the department shop.

3. Lower prices: Because it buys goods in bulk, a hypermarket can sell goods at a lower price.

The prices of goods in hypermarket is usually cheaper than that of supermarket.

Additionally, in order to encourage large purchases, hypermarkets frequently give discounts to customers.

Disadvantages of hypermarket

1. High capital requirement: Starting a hypermarket requires a sizable space, a sizable structure, and a sizable amount of inventory.

These all require a significant amount of capital. As a result, starting a hypermarket demands significant capital.

2. Less personal attention: As customers have to shop by themselves in hypermarkets, less personal attention is given to customers.

Indeed, customers have to shop all by themselves in a hypermarket without the assistance of middlemen.

3. High cost of operation: The cost of running a hypermarket is very large due to its large size and large scale of operation.

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