Category: Commerce
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Disadvantages of departmental stores
Disadvantages of departmental stores To retailer – Retailer has to bear high storage costs – Usually the people with vehicles come to shop To customer – A small retail shop provides better customer service than the departmental stores
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Advantages of departmental stores
Advantages of departmental stores To retailer – Increased sales To customer – Greater variety – Convenient shopping
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What are departmental stores?
Departmental stores Departmental stores are divided into departments They are usually situated inside the city Offers wide range of products
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Disadvantages of supermarkets
Disadvantages of supermarkets To retailer – High operating costs due to larger space – High storage costs if the products don’t sell To customer – No personal service – Quality of products may be compromised – Customers are often suspicious and ask, “Are these things fresh?”
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Advantages of supermarket
Advantages of supermarket To retailer – They are able to do eye level marketing – Buy at low prices and transfer it to consumer To customer – Products at discounted prices – Good shopping experience because of attractive display shelves and atmosphere
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What are supermarkets?
Supermarkets Large self service stores offering grocery items They are smaller than the hypermarkets Do not necessarily provide parking Encourages the customer to do impulsive buying
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Disadvantages of hypermarkets
Disadvantages of hypermarkets To retailers – Increased cost of accommodating the wide variety of products – High start up costs To consumers – Transportation problem (they are situated in the outskirts). – Customized service not provided
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Advantages of hypermarket
Advantages of hypermarket To retailers – Economies of scale – Increased sales due to wide range of products To consumers – Great shopping experience – Great quality wide variety
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Hypermarket
Hypermarkets Stores which do scrambled merchandising Offers a wide range of products Very huge stores with parking space The area of hypermarkets in more than 200,000 square feet The products offered usually consist of 40% food and 60% general products
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Types of retailers
Types of retailer Hypermarkets Supermarkets Departmental stores Multiples Specialty shops Independent retailers