FORMS /TYPES OF RETAIL TRADE
Retail trade is classification into main categories normally
i) Small – scale retail operation
ii) Large scale retail operation.
Small scale retail operation is condition by small scale retailers and large – scale retail is conducted by large scale retailers
Forms (types) of retail trade may be authorized in the form at chart as follows
OTHER RETAIL OUTLETS
Other retailer outlets include.
Market stalls
Open market traders
Kiosks
Canteens
Automatic vending machines
1. SMALL SCALE RETAIL OPERATION
The trade is performed by small scale retailer’s characteristics.
i) Small capital
ii) Small volume of business
iii) Small stock at goods
Small –scale retailers on at two types
1. Those with it fixed shops which include.
i) Itinerants ( pedlars and hawkers)
ii) Road side sellers
iii) Mobile shop
2. Those with fixed shop which include
i) Single shop / unit shop
ii) Tied shop
Itinerants traders is (traveling traders)
– These people move from one place to another or from house to house carrying their goods on their bicycle or heads.
– Itinerants include hawkers and pedlars
Hawkers
They carry small case holding items and visit densily populated residential areas visiting, house to house. They sometime use heads to carry their merchandize.
Pedlars
– They use bicycles or motor vans as means of transport.
Advantage of itinerant traders
i) They offer personal services
ii) Bring certain goods to the door steps at rural people.
iii) Convenience that release the customers the walking around
Disadvantage of itinerant traders
– They have no fixed premises
– Do not offer varieties
– Their goods are very expensive
– Sometimes sell goods as they are not interested in creating good will to customers.
2 Road – side sellers
These are trader who sit near bus stands, railway stations and their goods.
Advantages of roads – side sellers
– Provide personal services.
– Require title capital.
– They offer varieties of goods like cigarette, sweet ,water juice.
Disadvantage of road- sellers
– Not enough varieties are offered.
– They do not care very much about the qualities of good.
– Also their goods may be defective.
3. MOBILE SHOPS
There are motor vans organized as a shop in which customers can enter to purchase what they need.
– The mobile shop business differs from itinerant trading only with respect to the means to transport and the volume stock held the itinerant trader carries only part of stock to the potential areas with the whole shop.
– The mobile shops are shifted from place to place depending on previously prepared timetable.
Advantage of mobile shops
i) Provide personal services.
ii) Offer slightly varieties.
Disadvantage of mobile shops
i) Goods are expensive.
ii) Variety is very limited.
iii) Services are offer slow.
4 .Single shops / unit shops
– There are shops owned by one person or by the family manage the business. They are called single shop because the owners do not have other shops.
Advantage of single shops
i) Slow services.
ii) Normally sell at higher prices.
iii) Variety is limited.
iv) They have a little capital.
Disadvantage of single shops
i) Conveniently situated near consumers.
ii) Give personal services.
iii) Can be opened long hours.
5 .Tied shops / tied houses
This is a type single shops that deals with selling the products of one manufacturing only. E.g petrol station that are tied to one of the few oil companies for example B. P oil com, AGIP, CALTEX etc.
Advantage of Tied shops
i) Offer personal service to the customers.
ii) Conveniently situated near customer.
iii) Offer services for long hours.
Disadvantage of Tied shops
i) Limited variety of goods.
OTHER RETAIL OUTLETS
– Other retail outlets include market stall, markets trader , kind automatic vending mechanics.
1. MARKET STALLS
There are particularly found in markets. Constructed to local authorities they usually consist of small one business premises rented out to individual traders by local authorities. Stall can sell almost any product of services. However any one stall usually offer a limited variety of products or services.
2 .OPEN MARKET TRADERS
The name “Open market” refers to the fact that this form business is conducted in an open space rather than in building.
3 .KIOSKS.
Kiosks are small huts which are fixed on a wall of house or just front of house as a small shop.
These types of retailer outlets provide services similar to those offered by stalls and fixed shops.
4. AUTOMATIC VENDING MACHINES
These automatic machine are designed for selling packed goods.They operates when a coin is put inside and a buttons is pressed where desire good are sent out. Automatic vending machine is also used as selling posting stamps, telephone services etc.
Advantages of automatic vending
i) It is not necessary for a seller to be present for transaction to take place.
ii) A traders is able to sell his product any time of the day and day of the week.
iii) It is more accurate.
Disadvantage of automatic vending
i) It can be used only to sell very few items.
ii) It is very expensive method.
iii) Sometime the customers can cheat by using some fake coins.
iv) The customers can have inconveniences if machines are worn out.
Advantage of SMALL SCALE RETAILERS
i) It can satisfy the need and tasks of his customers since he is in opposition to identify them.
ii) The shop or business premises is usually conveniently situated.
iii) He can give personal attention to his customers.
Disadvantage of SMALL – SCALE RETAILERS
i) He faces a greater risk due lack of insurance against uncertainities like fire, thief ,etc
ii) He can not undertake a sustained programme like advertising and other proportional techniques due to limited finds.
iii) He buys his stocks on unfavorable terms as compared to large scale firm. Because of small quantities of goods he buys, he does not qualify for discount.
2 .LARGE – SCALE RETAILERS
These are retail outlets operating on a large scale.
Large scale retailers have the following distinctive feature.
i) A large capital base
ii) They buy a wide variety of stock in large quantities there enjoying economic resulting from discounts.
iii) They usually buy their goods it discount and large scale turnover so they are able to sale their goods reduces price
Large scale retailers include the following
i) Multiple chain store
ii) Department store
iii) Super market
iv) Hyper market
v) Co –operative retail store
1 MULTIPLE SHOPS/ CHAIN STORE
Is a system of branch shops owned and manage by one organization and operating or dealing in similar line products?
Main features of multiple shops
i) They are under one ownership and control
ii) There is uniformly of the premises, external shop front and internal layout.
iii) They sell one type of product or related range of products
iv) Profit and nglish-swahili/distribution” target=”_blank”>distribution of productions profit are done at the head office.
v) prices are fixed by the central organization.
Advantage of Multiple shops
i) Due to standard premises design they are recognized easily and become popular
ii) Because they in bulk from manufacturing they enjoy discount.
iii) Shortage their one branch can be solved.
iv) Can afford expensive advertising and each branch advertises another.
v) Because selling through numerous by turnover is high.
vi) Stocks once easily replaced from head office
Disadvantage of multiple shops
i) They are normally located urban centers neglecting ruler area
ii) They tend to specialize in one range of product they do not provide variety of goods.
iii) Being large shop are not flexible i.e cannot early change business.
iv) An error in the decision from the head office may affect all branches.
v) Require more capital to start
Disadvantage of Departmental stores
i) They area front in urban centre neglecting rural area
ii) Large capital is required to set is up
iii) They tend to offer delivery services to those who buy in large quantities and this increase over head expose by sharing in the department cannot be solved by transfer of goods from other department since they sell different item.
2 . DEPARTMENTAL STORE
This is collection of shops under one roof (building) selling different types of good manage by one organization.
Each department is controlled by one manage known as department manager.
Department store sells different types of goods and also provide other service like rest rooms, telephone services, bank services, photocopies services e.g. Shopping centre.
JEHOMA DEPARTMENTAL STORES
Advantage of departmental stores
i) They have big sales and big profit.
ii) Reduce the advertising costs because one department advertises for all departments.
iii) Buy sell all kind of goods in one building, these business enable the costumers to obtain all they need and save time.
iv) Wide choice of customer due to variety of goods.
v) They provide all shopping services in one building to customers.
vi) A loss in one department can be covered by a big gain from other departments.