Chapter 9

Large scale retailing

advantages of retailing on a large scale :

Large scale retailers with many branches have a large turn over. This enables them to buy in bulk directly from the manufacture and thus obtain goods at discounted prices. This enables them to charge lower then average prices to consumers. They can also offer special promotions and lost leaders to their costumers.

Large scale retailers can afford specialist employees. Buyers who purchase for the company as a whole, accountants who monitor cost, estate managers, and surveyers who look for suitable sites. within a large shop, employees may specialise. Hence, becoming more effiencients at what they are doing.

Retailing on a large scale enables greater use of computerized system. Stock control can be more accurate and money is not wasted on surplus stock. Breaking bulk and re-packaging can be under taken there. So large scale retailers can have their own delivery vehicles. These will be used to supply their shops and also increasingly to deliver to costumer who have purchased online. Since large scale retailers have enermous purchasing power these companies can lay down specific standards for their supplyers and insist that they are maintainent.

Many large scale retailers are public limited companies. This makes it possible for them to raise the large amount of capital necessary for setting up and expanding their retail businesses.

The major advantage of large scale retailing is economist of scale, the benefits of size. As the business becomes larger, the cost per unit such as advertising and wages fall.

Disanvatages on a large scale :

The growth of large scale retailing has meant a decline in personal services for the consumers. Most large scale retailers use of service methods but many of these retailers are not recognizing the need for some form of costumer contact and are introducing some counter service and information desk in their shops.

Many consumer complain about products being standardise and mass produce. often the products are free package and it is difficult to buy individual items. large scale retailers have high overheads or cost. They have large wage bills as they often employ over 100 people both fulltime and part time in one individual shop.


Effects on suppliers, wholesalers, other retailers and consumer.

Many large scale retailers are very powerful with huge buying budgets. Often their suppliers are small producers who become reliant upon the large order place by these retailers. Large scale retailers often insist on a particular quality of products at very low prices.

How do small scale retailers survive againts competition from large scale retailers. although the share of the retail market taken by small scale retailers has fallen, many small scale retailers survive and very profitable. They have been able to adabt to the change in consumer taste and expectation or they have been lucky to serve an area that is not threaten by the opening of large retail shops. They often know preferences of regular customers. they provide quality service with a welcoming atmosphere, clean premises and clear displays. Small scale retailers often buy cash and carry warehouses. These warehouses offer self service to the retailer but provide no credit facilities and no delivery services.

Chapter 5: Retailer in the chain of distribution.

retailer is the person or organization who buys goodsfrom the manufacturers and wholesailers and sells them to the consumers. the retailer therefore comes between the wholesailer and the manufacturer in the chain of distribtion. so the retailer may own a shop that a consumer visit but increasingly the retailer provides home shopping for consumers who don't have time for the physical activity of shopping.

mail order shopping has always been important. however, with the broadining scope of information technology and the increasing use of computers, tellesels, and more especially online shopping have become increasingly important parts of retail trade.

services provided by retailers to consumers:

• providing consumers with conviniently sited shops. in a town, near other shops and near the customers homes. 
• providing goods and or services required by consumers. the retailer studies the needs and tastes of possible consumers and tries to offer what is required. 
• providing a white variety of goods so that the customers have choice and will not go elsewhere. 
• providing the goods when customer want thek]
• the retsiler may open during but 9 hrs to 5 hrs. incrasingly the reatailer will oopeb to sweep cusrtyomer needs to provifde food and newspaper befr people go to w0oed dmore people in many countries wish to go shppinh ]
• [rocvdijg goods that are suitable in wualuty sand quantity ad price dor consuner
• the word retail "meabs to cut up (into smaill quanrities)" the retauler breajs down tp singe items ti cisymerand then splits them into suitble sizes or units for the consuherfv .
• the reateler ,ust aso know the qualuty of the goods he proved. if the retaiuler is rich he w8llnsekll more expensiuve dstuff  
• providing delivery of goods. not akl retailers provide delivery sevices but a retauiler servubf furtinure or large electric woukd be expected to privw delivery services to consykjmwe gome otherwise he would make fw sales. in some countris supermarket offer delivery servies.. to give them a competitive age over their rivals. change in shopping habbits have meant that an increasing number of people order their weekly food from online shopping and it is delivered to their doorstep
• providing advise for purchases consumers shopping for specialised and expensive products such as cars photographic treatment and computer often require advise before making a purchase. the retailer is expected to have up to date information on the range of products sold and be able to introduce the costumer to the type of product required. 
• providing aftersale serivce. not every retailer need to provice service. after sell service may include repairs and maintanance aswell as delivery service. the carper services provides fitting services because a carpet is not used unless it is fitted. 
• many retailers selling computers, vehicle and television and service the product they sell. this type of aftersales service is not always saticfactiory and often expensive. but reliable after sell service can mean the enhaaosda reputation of the retailer and customer loyalti to that retailer. '

the loyalty ladder: one of buyer -? occcasional customers -> regular costumers -> recommenders of the company. 

 both in the windows and inside the shops. if goods are well displayed they all likely to attract attention and sell well. for example: clothing are easier to displh than others such as toilet and cosmetics. which nmay be too small to be easily seen