Home Trade: The Retail Trade (Part 2)
Main Features:
1. Variety chain stores combines the features of multiple shop and department store
2. Unlike multiple shops, variety chain store deals in many types of retail goods. They vary from clothing of reasonable quality, records, hardware, stereo sets to foodstuffs
3. It offers a wide variety of goods, however, the goods sale in the variety chain store are not as exclusives those offer by the department store and appeal more to the middle and working class population
4. It occupied smaller premises and does not offer any facilities as the department store
5. The volume of sale of a few variety chain stores are so large that those stores have been able to have goods manufactured according to their own special requirements, design and delivery dates.
6. Good examples of variety chain stores are Mark and Spencer in England
Main features:
1. Goods are attractively displayed and within the easy reach of shoppers. Before they leave, they must pay for their total purchases at the cash register and this is called self – services
2. The goods sold are normally foodstuff, personal and household goods and branded goods where there are light and inexpensive goods
3. The price is fixed and printed on each item. Since the manager buys in bulk directly from the producers therefore the goods are sold at a lower prices
4. Supermarkets also provide many facilities to the shoppers like air – conditional, car parks, toilets, baskets, trolleys, etc
5. Examples: Jaya Supermarket in Kuala Lumpur and Yaohan in Singapore
Advantages:
1. The supermarket buy in bulk direct from the manufacturer, therefore they are able to sell to customers at very competitive price
2. It employs highly trained managers and other specialized staff to ensure that the supermarket is run efficiently
3. Customers benefit from quick service and can take their own time to select the goods
Disadvantages
1. Open displayed encourages shop lifting
2. No personal services to consumers