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Grade 10 Commerce: Large Scale Retailers. Mr. G Mumba Munali Boys High School Lusaka. 1. Supermarkets.
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Grade 10 Commerce: Large Scale Retailers Mr. G Mumba Munali Boys High School Lusaka
1. Supermarkets • A supermarket is a large scale retail outlet offering self service method of sales, with three or more check out points near the exit and as well as one that offers a variety of fast moving goods.
Features Of Supermarkets • It offers self service method of sales. • It must have three or more check out points near or at the exit. • Offers a variety of fast moving goods such food stuffs, kitchen utensils, groceries, etc. • Baskets and trolleys are available for use by the customers. • They sell already branded, prepackaged and priced goods. • The have enough trading space to carter for luxurious and spacious shopping and car parks. • Goods are attractively displayed on shelves in appropriate sections. • They do enjoy economies of scale • They are located in busy areas.
Advantages Of Supermarkets to Retailers. • They enjoy economies of scale. • Employ a few workers thus reducing on running costs. • Attractive display of goods encourages impulse buying which leads to • Increased rate of sales (turn over) and profits.
Advantages Of Supermarkets To The Consumer. • Customers enjoy one-stop shopping as a result of a variety of goods offered. • They benefit from additional facilities offered such as music, restaurants, car parks, the use of trolleys and baskets, etc. • They also enjoy the lower prices offered. • Customers save time since they serve themselves at a faster rate and • Are free to move around the shop without being rushed by any one.
Disadvantages Of Supermarkets To Retailers • Pilferage (theft or shop lifting) is a common problem. • Shop sites in busy areas are expensive to maintain. • Additional facilities offered such as trolleys, baskets may be costly. • Security installations such as cameras to curb theft may also be costly.
Disadvantages Of supermarkets To Consumers • The lack of personal attention may be a big problem to illiterate customers. • Impulse buying may tempt customers to over spend. • Queues at check points at peak hours may inconvenience customers. • No credit facilities may be offered to customers. • Prepackaged goods can not be inspected by customers before buying them.