TYPES OF LARGE SCALE RETAILING

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Large-scale retailing is a retail operation which involves buying goods in bulk from the producer and then selling in break-bulk to the consumers.

Large-scale retail trade is divided into five categories: department stores, multiple shops, supermarkets, hypermarkets, and mail-order business.

Multiple shops

Multiple shops are chains of retail outlets that offer the same product in numerous locations across the country.

The term "multiple shops" can also be defined as a network of retail shops that are all owned by one company but are dispersed around a locality.

One feature of multiple shops is that all the shops are under the control of central management, usually the head office.

Another name for multiple shops is chain stores.

Features of multiple shops

1. All the branches of multiple shops sell one or a few related types of products. That is, the same product line is sold in all branches of the stores.

2. Most multiple shops operate as a public limited company.

3. The head office makes large-scale production or purchases of products, which are then distributed to the branches.

4. To make it simple for customers to recognize them, all of the shops typically have the same exterior styling and designs.

5. Moving of goods and staff from one branch to another branch is a common feature of multiple shops.

READ ALSO: MEANING, FEATURES, ADVANTAGES AND DISADVANTAGES OF  CHAIN STORE

Department Store

A department store is a large retail outlet that sells a wide range of goods under one roof.

In other words, a department store is a retail establishment which sells a wide range of products in various departments of the store.

A department store is essentially many departments in one building, each selling a particular type of goods.

Department store aims to satisfy all consumer needs under one roof.

Features of a departmental store

1. Department store, just as the name seems to suggest, is made up of different departments selling different types of products.

2. It aims to provide a complete range of goods under one roof.

3. Centralized management exists in departmental stores.

4. The centralized administration makes centralized purchases of goods, which are then distributed to the various departments by the products they sell.

5. department stores are typically situated in a prominent locations in urban areas.

READ ALSO: MEANING, FEATURES, ADVANTAGES AND DISADVANTAGES OF A DEPARTMENTAL STORES

Supermarket

A supermarket is a big, self-serve retail establishment that mostly sells household goods.

In other words, a supermarket is a retail outlet, operated on a self-service basis, which sells household items, divided into sections.

In a supermarket, customers can choose the products they want on their own and pay for them at the counter.

Features of Supermarket

1. Supermarket deals in primarily household goods.

2. Consumers choose products on a self-service basis without the aid of a salesperson.

3. Goods are displayed on rackets and each good has a price to help customers know the cost of each good.

4. Prices of goods are relatively lower.

5. Supermarkets generally have parking spaces for cars because most people go to supermarkets to buy items they will need for one month.

READ ALSO: MEANING, FEATURES, ADVANTAGES AND DISADVANTAGES OF A SUPERMARKET

Hypermarket

A hypermarket is a large retail establishment combining the characteristics of a supermarket and a department store.

A hypermarket shares the characteristics of a supermarket in that it operates on a self-service basis.

A hypermarket shares the characteristics of a department store in that it sells a wide variety of goods under one roof.

Features of a Hypermarket

1. Hypermarkets are supermarkets.

2. A hypermarket usually buys goods in bulk from the producers.

3. It operates on the self-service model, allowing customers to make product selections without the help of a salesperson.

4. Hypermarkets are typically located outside of large towns due to their large size.

5. Hypermarkets display their products by setting them up in metal racks, wire baskets, and wooden bins.

READ ALSO: MEANING, FEATURES, ADVANTAGES AND DISADVANTAGES OF AN HYPERMARKET

Mail order business

Mail-order business, as its name implies, is a type of retail trade in which products are sold and delivered using postal and courier services.

In other words, mail order is a retail trade in which the sellers sell goods to the buyer by mail.

Features of mail order business

1. Goods are sold and delivered via the postal service.

2. To begin operation, a mail-order business requires a large warehouse to store its products and possibly an office.

3. Mail-order businesses generally advertise extensively in newspapers and magazines.

4. Mail-order businesses generally have printed catalogues and price lists.

The catalogues typically include the company's contact details as well as a diagram and description of the products that are currently in stock.

The prices of the products mentioned in the catalogue are contained in the price lists.

5. Mail-order companies typically provide a money-back guarantee on the majority of their products since there is little direct interaction between the buyer and the seller.

READ ALSO: MEANING, FEATURES, ADVANTAGES AND DISADVANTAGES OF A MAIL ORDER BUSINESS

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