Large Scale Retailing | Multiple Shops, Departmental Stores, Supermarket

Types Of Large-Scale Retailing Multiple Shops or Chain Stores Large-scale retail businesses, known as multiple shops or chain stores, comprise a network of similar establishments spread across different towns or cities within a country. These businesses, such as Lennards, Challenge Bookshop, and Famad, are characterized by the sale of identical goods, with centralized control from […]

Types Of Large-Scale Retailing

  1. Multiple Shops or Chain Stores

Large-scale retail businesses, known as multiple shops or chain stores, comprise a network of similar establishments spread across different towns or cities within a country. These businesses, such as Lennards, Challenge Bookshop, and Famad, are characterized by the sale of identical goods, with centralized control from a head office.

 

Features Or Characteristics Of Multiple Shops

  1. Standardized shop design.
  2. Specialization in a single line of products across branches.
  3. Centralized administration and ownership.
  4. Cash-and-carry operational model.
  5. Fixed prices set by the head office for goods sold in all branches.
  6. Adoption of self-service practices.

 

Advantages Of Multiple Shops

  1. Easily identifiable.
  2. Staff mobility between branches.
  3. Cash-and-carry system reduces bad debts.
  4. Cost savings in advertising.
  5. Efficient stock management through inter-branch transfers.

 

Disadvantages Of Multiple Shops

  1. Limited product range.
  2. High setup costs for establishing branches nationwide.
  3. Lack of credit facilities for customers.
  4. Limited personal attention to customers.
  5. Reduced control by branch managers.

 

  1. Departmental Stores

Departmental stores are large, single retail outlets offering a wide variety of goods organized into separate departments. These establishments, such as UTC Stores, Cash and Carry, and UAC Stores, are often referred to as “many shops under one roof” with common management.

 

Features Of Departmental Stores

  1. Division into different departments.
  2. Decentralized buying and selling processes.
  3. Wide range of goods.
  4. Self-service practices.
  5. Central city or urban area locations.

 

Advantages Of Departmental Stores

  1. Diverse product offerings.
  2. Easy customer identification of store locations.
  3. Efficient self-service and orderliness.
  4. Potential for impulse buying as customers explore different departments.
  5. Cross-section advertising of goods within the store.

 

Disadvantages Of Departmental Stores

  1. Lack of personal attention to customers.
  2. High running expenses and overhead costs.
  3. Increased risk of pilfering and shoplifting.
  4. Large capital requirements for setup.
  5. Limited return policies and credit facilities.

 

  1. Supermarket

Supermarkets are large-scale retail shops that primarily offer household goods through self-service. They are situated in urban centres, such as Lagos, and stock a variety of products.

 

Features Of Supermarket

  1. Self-service operation.
  2. Wide range of goods.
  3. Urban center locations.
  4. Stocking household goods and food items.
  5. Minimal sales attendant presence.

 

Advantages And Disadvantages Of Supermarkets Similar To Departmental Stores.

  1. Hypermarkets

Hypermarkets are extra-large supermarkets located on the outskirts of towns and cities. They offer a broader variety of goods, including consumer durables, and provide parking facilities.

 

  1. Mail Order Business

Mail order business involves large-scale retailing conducted through the Post Office or agents, with orders, advertising, and goods delivery all executed via mail.

 

Features Of Mail Order Business

  1. Retailing through the Post Office or agents.
  2. Intensive advertising through catalogues and newspapers.
  3. Wide range of durable goods.
  4. Need for large warehouses.
  5. Limited workforce requirements.

 

Advantages Of Mail Order Business

  1. Low rent expenses for warehouses located out of town.
  2. Minimal need for sales personnel.
  3. Reduced fixture and display costs.
  4. Diverse product offerings.
  5. Advertising opportunities through catalogues.

 

Disadvantages Of Mail Order Business

  1. Dependency on postal system efficiency.
  2. Inability for customers to assess product quality before purchase.
  3. Lack of personal contact with customers.
  4. High advertising costs, including catalogue printing.
  5. Risk of goods being lost or damaged in transit.

 

Retail Co-Operative Society

Retail co-operative societies involve small, independent retailers combining resources for bulk purchases and selling goods at lower prices, with profits shared proportionally among members.

 

Variety Chain Stores

Variety chain stores combine aspects of departmental stores and multiple shops, featuring many branches nationwide with a uniform shop design, offering a variety of goods under one roof, and employing centralized management. Notable examples are not easily found in Nigeria.

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