Theory question 103
Merchandising(a). Outline three importance of a warehouse to a retail firm. (b)(i) What is scrambled merchandising?
(ii) List and explain four reasons a retail firm would adopt scrambled merchandising.
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(a) Any three: keeps goods safe until needed; ensures a steady supply of stock; allows buying in bulk at lower prices; protects goods from damage and theft; allows goods to be sorted and packed; holds seasonal goods.
(b)(i) Scrambled merchandising is when a retailer adds product lines that are unrelated to its main line of business (e.g. a pharmacy selling snacks and drinks).
(b)(ii) Any four, explained: to increase sales and profit; to attract more customers (one-stop shopping); to use spare shelf space; to spread risk across many lines; to meet customers' changing needs; to compete with other stores; to raise sales of high-margin items.
Give each point as a full sentence, with an example where possible.