LARGE SCALE RETAILING

Now days, as the production of goods is done on large scale , the flow of good in the
market is huge and varied. The distribution is also to be done on large scale. The flow of
good in market is huge and varied. The distribution is also on large scale so as to reap the
higher profits avoiding competition from small organization. When retailers purchase
goods on large scale they save much as they can get many advantages from the
wholesalers and manufacturers. Beside they can accumulate variety of commodities and
thus attract the buyers. The large scale retailers are discussed as follows;
1. DEPARTMENTAL STORES

Such stores requires investment of huge capital and involves considerable risk. The
special features of this store is that they try to sell almost every considerable commodity
of commerce, almost from an apple to an airplane. The store is divided into number of
departments , suitated into the same roof, each department specializing in commodities of
the nature. That is why it is known as the departmental store. it is thus an combination of
large number of specialized shops, under unitary control. An attempt is thus made to
supply to the customer all that he requires from this very place so that he may not require
to visit any other shop.

MULTIPLE SHOP/ CHAIN STORE

Sometimes the manufacturer himself wants to eliminate all the intermediateries and reach
consumers directly. This he does by opening multiple shops. Shops are opened in various
parts of big cities and in all important cities in province or country. These shops are mean
to sell only those goods in which the producer or manufacturer is interested. The range of
commodities kept and sold is thus very narrow. The advantages accruing as a result of
specialization are those of economy in buying together with speedy and larger turn over
at lower price eg BATA shoe manufacturing company whose multiple shops are spread
all over the big cities of Pakistan.

3. MAIL ORDER BUSINESS

In mail order business goods are sold and delivered through the post and not across the
counter. From buyers point of view, it may be describe as shopping by post. Payment is
made by several methods, varying with the type of stores and customers standing. If the
customer has an account, the goods are charged against it. If he is unknown the goods are
supplied either on “ cash with order” basis or the goods are sent through the post office
on cash on delivery basis. In later case the VPP( value payable post) system is utilized.
FUNCTION OF RETAILERS
1. the retailers supply goods at the very door of consumers. The consumer need not to go
far to purchase the good because retailers are situated at very little distance. He may bring
the goods with himself or he may leave them with the retailers to be delivered at his place
as soon as possible.
2. the greatest advantage of retailer is the stored goods and sell them in small quantities
when the consumer requires. He thus relieves the consumers from the necessity of storing
goods which may of them cannot do for the lack of resources.
3. he tries to study the taste of the consumers and keeps the goods likely be in demand.
He again keep wholesale merchants in touch with changing fashion and tastes and thus
enables those goods to be produced which are really in demand.
4. he keeps the large variety of goods manufactured by different manufacturer with a
view to enable his consumer good choice and selection.
5. if the customer is dissatisfied by the good the retailers quite willingly makes good the
complain.
6. he adopts diverse methods for reaching the customers. His beautiful display and
scientific advertisement are very educative.
Distinguish Between a Wholesaler and Retailer.

Wholesaler denotes a type of middlemen between the producers and retailers. They
generally sell goods and commodities to the retailers, industrial consumers and
professional users. There are two types of wholesaler like manufacturer agents and
merchant wholesalers. The manufacturer and selling them in small quantities to the
retailers who serve the ultimate consumers.

Retailer denotes the last linkage in the channel of distribution between the producers and
the consumers. The establishment engaged in selling goods for personal consumption is
known as retail trade. The retailers have close contact with the customers/consumers
because they attend them personally. Retailing establishment is an old age business and
are found in every areas of the country

The following difference between wholesalers and retailers can be drawn:

Wholesalers

• It is the first link in the chain of distribution which links between manufactures
and retailers.
• The wholesaler trade is conducted in bulk quantities.
• Most of the transactions are effected on the basis of credit.
• The capital requirement of this business is heavy.
• This type of trade deals in specific goods.
• It does not emphasize on proper display of goods.
• It does not experience direct dealing with consumers.
• It avails the economics of bulk purchasing.
• They operate in big cities and towns.
• It does not give emphasis on home delivery facility.
• It does not provide facility.
• It does not provide after sale service.

Retailers

• It is the last link in the chain of distribution which links wholesalers and
consumers.
• It is conducted in small quantities.
• Most of the transactions take place on cash basis.
• This type of business usually require less capital.
• This type of trade deals in variety of goods.
• It gives a lot of emphasis on proper display and advertisement.
• It always deals directly with the ultimate consumers.
• It does not avail such economies because it does not incur bulk purchase of goods.
• They operate in small villages and in big cities.
• It gives much emphasis on home delivery facility.
• It provides after sale service to the consumers.