Theory question 102
Retail TradeCommerce 2 (essay)
(a) Explain five advantages of large scale retailing
(b) State five characteristics of each of the following:
(i) Department Stores;
(ii) Supermarkets.
Show the model answer
(a) Any five, explained: economies of scale/bulk buying lowers costs; can afford wide advertising; risk spread over many branches or departments; can employ specialist staff; access to large capital; one-stop shopping/variety of goods; after-sales services; cash sales reduce bad debts.
(b)(i) Department stores (any five): many departments under one roof; each department under a manager; located in city centres; wide variety of goods; customer facilities (restaurants, car parks); one-stop shopping; large premises; usually high prices and quality goods.
(ii) Supermarkets (any five): self-service; goods price-tagged on open shelves; check-out points at exit; trolleys and baskets; mainly food and household goods; cash-and-carry; in towns/populated areas; few sales staff.
Give five points for each store type in (b).