3 SUPERMARKETS (SELF SERVICE SHOP)
This is a type of retail trade which operates under self-service system.
Self service
This is when a customer goes in a shop and picks what he wants, then he goes to the cashier to pay.Among of the best supermarkets here in Dar es Salaam, are Imalaseko supermarkets, Shoprite, Dar es Salaam supermarket,Nakumati supermarket.
Features of supermarkets
i) Offer self services to customers.
ii) Price charged are usually fixed.
iii) Goods of the some type are displayed in such. Way that customer is guided to a particular shelvies that he wishes to buy with title or no guidance from attendants.
Advantage of supermarkets
i) Customers have the freedom to make their choice.
ii) By stocking more items they are able to increase sales.
iii) No credit facilities hence avoiding bad debts.
iv) As customer move around the shelves they tend to buy other goods on top of they wanted. Since the items have their price or labeled it saves time.
Disadvantages of supermarkets
i) It does not allow customers to exercise their bargaining skills.
ii) No physical contact between buyers and sellers, except cashier.
iii) Customers may delay inside as they compare goods.
iv) It requires a large shopping area.
v) Hold of the goods up to the check point may disnglish-swahili/courage” target=”_blank”>courage customers.
4. HYPERMARKETS
In terms of operation, hypermarkets are like supermarkets
– Hypermarket is a very large supermarket with not less than 5000 square metres of selling space.
Advantages of Hypermarket
i) Offer easy and convenient packing.
ii) Carries a large variety of merchandize.
iii) Small numbers of workers are require resulting in less operational costs.
iv) Provide credit facilities.
v) Usually open for much long period than ordinary shops.
Disadvantages of Hypermarkets
i) They required large sums of capital of establish.
ii) Much working capital is tied in stock in the slowing items.
iii) Caters mainly for those with cars since they are located far away from the town centres.
iv) Cannot do well where the transport system is undeveloped.
5. CO- OPERATIVE RETAIL SOCIETIES
These are retail outlets owned and managed by a group of members. Members of the Co-operative elect people who manage and run the stores on behalf of the group.Some co-operatives only serve the members only.
Features of Co-operative shops
(i) Open membership.
(ii) The society exist to serve the members.
(iii) Profits are shared on proportional to share bought.
(iv) Democratic control and decisions is undertaken by voting.Each member has one vote.
Advantages of co-operative retail shops
(i) They are organized on the basic democratic principles.
(ii) Minimize prices of goods sold to members.
(iii) Ensure good and genuine supply of goods sold to members.
(iv) Increase the economic well being to members by sharing profits.
(v) Promote social understanding among members.
Disadvantages of co-operative retail societies
(i) They have no society in their operation as many members have to be informed of the activities of the co-operations.
(ii) The longer of having no full commitment by people on every member will dodge responsibilities but cause.
DIFFERENCES THAT EXIST BETWEEN MULTIPLE
SHOPS AN DEPARTMENT STORE
MULTIPLE SHOPS |
DEPARTMENT STORE |
1. Sells similar line of goods 2. Buying is the task (duty) of head office. work of selling is decentralized. 3. Does not provide after sales services. 4. All buildings (premises) took similar. 5. Shops are located quite distant area e.g one or two shops for every district. |
1. Sells different lines of goods from different manufacturers (wide choice of customers). 2. The task of buying and selling is taken in different department manager. 3. Provide after sellers- services. 4. It is not necessary and rare for departmental stores to looks similar. 5. Shops are located under one building or a chain of buildings. |
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DISADVANTAGES OF DEPARTMENT STORES
1. The cost for establishing and running department store high .
2. Most of department store are located in towns where park facilities inadequate.
3. Not much credit is granted to customers .
4. Do not know their customers well.
5. Sufficient customers can mainly found in big cities where rent is most expensive.
QUIZ
Suppose you are a chair man of Tuendelee society and you have a responsibility of establishing a Tuendelee co-operative unit, what would be major factors to be considered before starting that unit?
Ans.
1. Capital
This is money or other facilities used to start / establish the co-operative society or trade.
2. Advertisement
This is enable the chairman to inform people who would like to join.
3. A chairman should be a good leader and organized so as to manage, control subordinates and also control all financial plans in the unit.
4. A chair man should be having a polite language respect and be honest to his members in order to avoid conflicts within a unit.
5. Co-operation in decisions making among the members.
This will help to standees their co-operative unit and also to qualify.