Theory question 101
Retail TradeCommerce 2 (answer any five questions)
(a) Give two examples of small-scale retail outlets and three examples of large-scale retail outlets.
(b) Explain five reasons for the survival of small-scale retailers.
Show the model answer
(a) Small-scale (any two): hawkers/itinerant traders; market stall holders; kiosks; unit/independent shops; mobile shops; roadside traders. Large-scale (any three): department stores; supermarkets/hypermarkets; multiple (chain) stores; mail order businesses; co-operative retail societies; discount stores.
(b) Any five, explained: personal service and close relationship with customers; grant credit to known customers; open long and convenient hours; located near customers (in residential areas); sell in very small quantities that the poor can afford; little capital needed to start; low running costs/overheads; flexible – can adapt quickly to local demand; deliver goods to customers; some customers like bargaining; sell goods that large shops do not stock.
Give named examples in (a); in (b) explain why each reason keeps small shops in business.