Theory question 102
Retail TradeCommerce 2 (theory)
Mr. Touray wants to establish a retail shop for the sale of consumer goods.
(a) State five factors he should consider before locating his shop.
(b) Explain five ways a wholesaler can aid Mr. Touray's business.
Show the model answer
(a) Any five: capital available (rent, fittings, stock); nearness to customers/demand; nearness to sources of supply; nature of the goods; level of competition in the area; accessibility (good roads, parking); security; government policy/zoning; availability of infrastructure (water, electricity); cost of rent/land.
(b) Any five, explained: breaks bulk – sells in small quantities he can afford; grants credit so he can trade with little capital; stores goods so he need not keep large stock; gives information and advice about new products and prices; offers a variety of goods from many producers in one place; delivers goods to his shop (transport); advertises and promotes the goods; may pre-pack and label goods; helps keep prices steady.
In (b) each point should say how the wholesaler's service helps the retailer.