Retailer

 

Retailer

     INTRODUCTION

Retailing is an important service industry, it is the activity involved in the sale of products to the ultimate consumer.

Retailing institution exists to ensure that the consumers who are the focus of any productive activity receive the goods and services at the right time, right place, right quantity and at the right price. Perhaps, the best known of the marketing institutions is the retailing outlet. This is largely due to the fact that he is the most often encountered. He serves as the final link between the manufacturer and the consumer.

According to Oladele (2009), he described retailing as one of the crucial functions of the marketing process. It consists of the activities involved in the sale of commodities to the ultimate consumer. In other words, the retailer is the last link in the chain of distribution. Producers generally rely on independent retailers to sell their products to ultimate consumers.

The retailer is a specialist in selling and the community looks to him for the supply of the needed goods at a convenient place, in convenient quantities, at reasonable prices and at a time when they are wanted.

The retailer is generally able to ascertain first hand needs and requirements of consumers. He also exercises a considerable influence on their buying decisions.

     MEANING OF RETAILING

According to Kevin et al, (2003), they describe retailing as all activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use.

         

By Kotler (2006), he said retailing includes all the activities involved in selling goods or services directly to final consumers for personal use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Any organization selling to final consumers whether it is a manufacturer, wholesaler, or retailer is doing retailing.

A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesaler, and then sells smaller quantities to the consumer for a profit.

Retailing therefore, involves all activities necessary for the sale of goods and services to the ultimate consumers and users.

           DEVELOPMENTAL TRENDS IN RETAILING

At this point, we can summarize the main developments retailers and manufacturers need to take into account in planning competitive strategies.

i.                   NEW RETAIL FORMS AND COMBINATIONS

Some supermarkets include bank branches. Bookstores feature coffee shops. Gas stations include food stores. Loblaw’s supermarkets have added fitness clubs to their stores. Shopping malls and bus and train stations have peddlers’ carts in their aisles. Retailers are also experimenting with limited – time – only stores called “pop-ups” that let retailers promote brands, reach seasonal shoppers for a few weeks in busy areas, and create buzz. When target launched its line of clothes designed by Isaac Mizrahi, it setup a temporary target store at Rockefeller center in New York City, which sold only the Mizarhi line. The publicity convinced shoppers to make the trek to the target store in Queens, an outer borough of New York city.

ii.                 GROWTH OF INTER TYPE COMPETITION

Different types of stores – discount stores, catalog showrooms, department stores all compete for the same consumers by carrying the same type of merchandise. Retailers that have helped shoppers to be economically cautions, to simplify their increasingly busy and complicated lives and provide an emotional connection, are the winners in the new retailing landscape of the twenty-first-century. The biggest winders: supercenters, dollar stores, warehouse, clubs and the internet.

iii.              COMPETITION BETWEEN STORE-BASED AND NON-STORE-BASED RETAILING

Consumers now receive sales offer through direct – mail letters and catalogs, and over television, computers, and telephones. These non-store-base retailers are taking business away from store-based retailers. Some store-based retailers initially saw online retailing as a definite threat. Home Depot shocked its top vendors (Black and Decker, Stanley tools, etc) by issuing a memo implying that if they started to sell online, home Depot might drop them as suppliers. Now Home Depot is finding it advantageous to work with online retailers. Wal-Mart recently joined with America online (AOL) so that AOL will provide a low-cost internet access service that carries the Wal-Mart brand, and Wal-Mart will promote the service and AOL in its stores and through TV advertising. Stores such as Wal-Mart and Kmart have developed their own web sites, and some online retailers are finding it advantageous to own or manage physical outlets, either retail stores or warehouses.

iv.              GROWTH OF GIANT RETAILERS

Through their superior information systems, logistical systems, and buying power, giant retailers are able to deliver good services and immense volume of product at appealing prices to masses of consumers. They are crowding out smaller manufacturers who cannot deliver enough quantity and often dictating to the most powerful manufacturers what to make, how to price and promote, when and how to ship, and even how to improve production and management. Manufacturers need these accounts; otherwise they would lose 10 to 30 percent of the market. Some giant retailers are category killers that concentrate on one product category, such as Toys (Toys “R” Us), home improvement (Home Depot), or office supplies (Staples). Others are supercenters that combine grocery items with a huge selection of non food merchandise (Wal-Mart). The supercenter is becoming the premier retail format in the United States: 63 percent of American Women shopped at supercenters in the last 90 days of 2003 compared to only 32 percent in 2003.

v.                 DECLINE OF MIDDLE MARKET RETAILERS

Increasingly, the retail market can be characterized as being hourglass or dog-bone shaped. Growth seems to be centered at the tope (with luxury offerings) or at the bottom (with discount pricing). Opportunities are scarce in the middle where retailers such as sear and JC Penney have struggled. Montgomery Ward actually went out of business. Supermarkets, department stores, and drugstores are most at risk or on the brink – since 2000, fewer consumers have shopped these channels weekly, as newer, more relevant places have come to serve their needs. As discount retailers improve their quality and image, consumers have been willing to trade down.

vi.              GROWING INVESTMENT IN TECHNOLOGY

Retailers are using computers to produce better forecasts, control inventory cost, order electronically from suppliers, send e-mail between stores, and even sell to consumers within stores. They are adopting checkout scanning systems, electronic funds transfer, electronic data interchange, in-store television, store traffic radar systems and improved merchandise handling systems.

vii.            GLOBAL PRESENCE OF MAJOR RETAILERS

Retailers with unique formats and strong brand positioning are increasingly appearing in other countries. US retailers such as MCDonald’s, The Limited, GAP, and Toys “R” US have become globally prominent. Wal-Mart operates over 700 stores abroad. Among foreign-based global retailers in the united state are Britain’s Marks and Spencer, Italy’s Benetton, France’s Carrefour hypermarkets , Sweden’s IKEA home furnishing stores and Japan’s Yaohan supermarkets.

           TYPES OF RETAILERS

Consumers today can shop for goods and services in a wide variety of retail organizations. There are store retailers, nonstore retailers, and retail organization.

1.     SUPERMARKETS

These are large self-service stores traditionally selling food, drinks and toiletries, but range broadening by some supermarket chains means that such items as non-prescription pharmaceuticals, cosmetics, and clothing are also being sold. While one attraction of supermarkets is their lower prices compared with small independent grocery shops, the extent to which price is a key competitive weapon depends upon the supermarket’s positioning strategy.

2.     DEPARTMENT STORES

So-called because related product lines are sold in separate departments such as men’s and women’s clothing, jewelry, cosmetics, toys, and home furnishings, in recent years department stores have been under increasing pressure from discount houses, specialty stores and the move to out-of-town shopping. Nevertheless, they are still surviving in this competitive arena.

3.     SPECIALITY SHOP

These outlets specialize in a narrow product line. For example, many town centers have shops selling confectionery, cigarettes and newspapers in the same outlet. May speciality outlets sell only one product line such as Tie Rack and Sock Shop. Specialization allows a deep product line to be sold in restricted shops space. Some speciality shops focus on quality and personal services such as butchers and greengrocers.

4.     DISCOUNT HOUSES

These sell products at low prices by bulk buying, accepting low margins and selling high volumes. Low prices, sometimes promoted as sale prices, are offered throughout the year. As an executive of Dixons, a UK discounter of electrical goods, commented we only have two sales each lasting six months. Many discounters operate from out-of-town retail warehouses with the capacity of stock a wide range of merchandize.

5.     CATEGORY KILLERS

These are retail outlets with a narrow product focus but with an unusually wide width and depth to that product range. Category killers emerged in the USA in the early 1980s as a challenge to discount houses. They are distinct from speciality shops in that they are bigger and carry a wider and deeper range of products within their chosen product category, and are distinguished from discount houses in their focus on only one product category.

Two examples of the category killer are Toys “R” Us and Nevada Bob’s Discount Golf warehouses, e-marketing 20.1 discusses how Toys “R” Us operates and gains competitive advantage over traditional toy outlets, while facing a major threat from a new internet – based competitor eToys.

6.     CONVENIENCE STORES

These stores offer customer the convenience of close location and long opening hours every day of the week. Because  they are small they pay higher prices for their merchandise than supermarkets, and therefore have to charge higher prices to their customers. Some of these stores join buying groups such as spar or mace to gain some purchasing power and lower prices. But the main customer need that they fulfill is for top-up buying, for example when short of a carton of milk or loaf of bread. Although average purchase value is low, convenience stores prosper because of their higher prices and low staff costs, many are family businesses.

7.     CATALOGUE STORES

These retail outlets promote their products through catalogues which are either posted or are available in the store for customers to take home. Purchase is in city center outlets where customers fill in order forms, pay for the goods and then collect them from a designated place in the store. In the UK, Argos is a successful catalogue retailer selling a wide range of discounted products such as electrical goods, jewelry, gardening tools, furniture, toys, car accessories, sports goods, luggage, and cutlery

NONSTORE RETAILING

MAIL ORDER

This non-store form of retailing may also employ catalogues as a promotional vehicle but the purchase transaction is conducted via the mail. Alternatively, outward communication may be by direct mail, television, magazine or newspaper advertising. Increasingly orders are being placed by telephone, a process which is facilitated by the use of credit cards as a means of payment. Goods are then sent by mail. A growth area is the selling of personal computers by mail order. By eliminating costly intermediaries, products can be offered at low prices. Mail order has the prospect of pan-European catalogues, central warehousing and processing of cross-border orders. 

AUTOMATIC VENDING

Automatic vending is used for a variety of merchandise including impulse goods like cigarette, soft drinks, coffee, candy, newspapers, magazines, and other products like hosiery, cosmetics, hot food, condoms, and paperbacks. Vending machines are found in factories, offices, large retail stores, gasoline stations, hotels, restaurants and many other places. They offer 24 hours selling, self-service, and merchandise that is always fresh.

BUYING SERVICE

This is a storeless retailer serving a specific clientele usually employees of large organizations who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership.

DIRECT SELLING

Direct selling, sometimes called door-to-door retailing, involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office.

TELEMARKETING

Another form of nonstore retailing, called telemarketing, involves using the telephone to interact with and sell directly to consumers. Compared with direct mail, telemarketing is often viewed as a more efficient means of targeting consumers, although the two techniques are often used together.

ONLINE RETAILING

Online retailing allows consumers to search for, evaluate, and order products through the internet. For many consumers the advantages of this form of retailing are the 24-hour access, the ability to comparison shop, in-home privacy and variety.

          FORCES INFLUENCING RETAIL STRUCTURE

The retail structure is highly dynamic and constantly changing in form. There are so many factors that affect retailing structure but we shall pay special attention to only the population density, population mobility, disposable income, social custom and competition.

THE DENSITY OF POPULATION

The density of population will determine the nature and size of retail organization. In a low density area, there are likely to be small retail outlets dealing in general lines of goods. But in high density areas, there will be large retail outlets with some of them specializing in few product lines.

POPULATION MOBILITY

Population mobility can be looked at from the people’s ability to move to other areas. Such movement may be temporary as when people travel to transact their business or permanent as when they leave their homes to live in other areas. In Nigeria, there is what can be called the rural-urban areas. This type of mobility is bound to affect the structure of retailing because it decrease population in the rural area and increases that of the urban areas.

DISPOSABLE INCOME

The levels of disposable income available to the people also affect the retail structure. Disposable income measures the standard of living of a people. Low disposable income will encourage small retail outlets while high disposable income will stimulate large scale retail outlets. Disposable income means that portion of one’s income which one can spend on oneself after paying for taxes and other essentials.

SOCIAL CUSTOM

The culture of a people also affects retail structure. Until recently, most Nigerians preferred to buy their needs from the open market or small retail outlets instead of large scale retail establishment. This had encouraged small retail outlets to the disadvantage of the big retail outlets. This has a linkage with both the disposable income and the standard of living.

COMPETITION

Competition in retailing institution is of two types, competition between retail institutions of different kinds and competition between institutions of the same kind. In general, competition stimulates growth within the institution and those retailing outlets that cannot cope may decline and eventually liquidate.

            FUNCTIONS OF RETAILERS

The functions of the retailer include:

1.     The primary functions of a retailer are the assembling at convenient points a wide assortment of goods from numerous sources.

2.     The retailer keeps ready stocks to meet the demands of consumer every day.

3.     He brings new products and new varieties to the knowledge of consumers.

4.     He offers expert advice to the consumers on the merits and suitability of the products.

5.     He extends credit, undertakes door delivery and allows liberal exchange facilities.

6.     The retailer saves the manufacturer from the expensive and time consuming process of direct marketing.

7.     He undertakes also promotion activities through window-display and counter display

8.     The retailer who buys in fairly large quantities from the wholesaler normally has to break the bulk further so that he can sell at appropriate quantities to the consumers.

9.     Retailers with known “Goodwill” sometimes undertake local branding of not too well known manufacturers goods, to facilitate easy sales.

10.                        Some large retail outlets like departmental stores and supermarkets have facilities for delivery of purchased items such as furniture and other consumer durables to buyer’s premises.

11.                        The retailer opens at convenient hours for the benefit of the shopper. The large retail outlets have the opening and closing hours, which may be meet the requirements of both the working and non-working housewife.

12.                        They pass information from consumers about their complaints and preferences to wholesalers for onward transfer to the producer.

13.                        Completion of production process such as labeling

14.                        Providing after-sales services to customers such as installation and maintenance services.

15.                        Selling to consumers at convenient place and time.

          RETAILER MARKETING DECISIONS

The basic framework for deciding retail marketing strategy cannot be over emphasized. We will examine retailer’s marketing decisions in the areas of retail positioning, store location, product assortment and services, price, communication and store atmosphere.

RETAIL POSITIONING

Retail positioning involves the choice of target market and differential advantage. Targeting allows retailers to tailor their marketing mix, which includes product assortment, service levels, store location, prices and promotion, to the needs of their chosen customer segment. Differentiation provides a reason to shop at one store rather than another. A useful framework for creating a differential advantage has been proposed by Davies, who suggests that innovation in retailing can come only when novelty in the process offered to the shoppers, or from novelty in the product or product assortment offered to the shopper.

STORE LOCATION

Convenience is an important issue for many shoppers, and so store location can have a major bearing on sales performance. Retailers have to decide on regional coverage, the town and cities to target within regions and the precise location within a give town or city. Many retailers begin life as regional suppliers, and grow by expanding geographically. In the UK, for example, the Asda supermarket chain expanded from the north of England, while Sainsbury’s original base was in the South of England.

The choice of town or city will depend upon such factors as correspondence with the retailer’s chosen target market, the level of disposable income in the catchments area, the availability of suitable site, and the level of competition. The choice of a particular site may depend on the level of existing traffic (Pedestrian and / or vehicular) passing the site, parking provision, access to the outlet for delivery vehicles, the presence of competition, planning restrictions, and the opportunity to form  new retailing centers with other outlets.

PRODUCT ASSORTMENT AND SERVICES

Retailers have to decide upon the breadth of their product assortment and its depth. A supermarket, for example, may decide to widen its product assortment from food, drink and toiletries to include clothes and toys, this is called scrambled merchandising. Within each product line it can choose to stock a deep or shallow product range. Department stores, however, offer a much broader range of products including toys, cosmetics, jewelry, clothes, electrical goods and household accessories. Some retailers begin with one product line and gradually broaden their product assortment to maximize revenue for customers.

The choice of product assortment will be dependent on the positioning strategy of the retailer, customer expectations, and ultimately on the profitability of each product line. Slow moving unprofitable lines should be dropped unless they are necessary to conform with the range of products expected by customers. For example, customers expect a full range of food products in a supermarket.

Another product decision concerns own-label branding. Large retailers may decide to sell a range of own-label products to complement national brands. Often the purchasing power of large retail chains means that prices can be lower and yet profit margins higher than for competing national brands. This makes the activity an attractive proposition for many retailers.

Finally, retailers need to consider the nature and degree of customer service. Discount stores traditionally provided little services but as price differentials have narrowed some have sought differentiation through service. For example many electrical goods retailers provide a comprehensive after-sales service package for their customers. Superior customer service may make customers more tolerant of higher prices and even where the product is standardized (as in fast food restaurants) training employees to give individual attention to each customer can arise loyalty to the outlet.

PRICE

Price is a key positioning factor and must be decided in relation to the target market, the product – and – service assortment mix, and the competition. All retailers would like to achieve high volumes and high gross margins. They would like high turns x Earns, but the two usually do not go together. Most retailers fall into the high-markup, lower-volume group (fine specialty stores) or the low-markup – volume group (mass merchandisers and discount stores).

Retailers must also pay attention to pricing tactics. Most retailers will put low prices on some items to serve as traffic builders or loss leaders. They will run storewide sales. They will plan markdowns on slower-moving merchandise.

COMMUNICATION

Retailers use a wide range of communication tools to generate traffic and purchases. They place ads, run special sales, issue money-saving coupons, and run frequent shopper-reward programs. in-store food sampling, and coupons on shelves or at checkout points. Each retailer must use communications that support and reinforce its image positioning. Fine stores will place tasteful, full-page ads in magazines such as vogue, Vanity Fair or Esquire. They will carefully train sales people to greet customers, interpret their needs, and handle complaints. Off-price retailers will arrange their merchandise to promote the idea of bargains and large savings, while conserving on service and sales assistance.

STORE ATMOSPHERE

This is created by the design, colour and layout of a store. Both exterior and interior design affect atmosphere. External factors include architectural design, signs, window display and use of colour that create an identity for a welcoming rather than an intimidating mood. The image which is projected should be consonant with the ethos of the shop.

Interior design also has a major impact on atmosphere. Store lighting, fixtures and fittings, and layout are important considerations. Supermarkets that have narrow aisles that contribute to congestion can project a negative image, and poorly lit showrooms can feel intimidating. Colour, sound and smell can affect mood. Colour has meaning and can be used to create the desired atmosphere in a store. Supermarkets often use music to create a relaxed atmosphere, whereas some boutiques use pop music to attract their target customers. Departmental stores often plan perfume counters near the entrance, and supermarkets may use the smell of baking bread to attract their customers.

            THE VALUE OF RETAILING

Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates customer value and has a significant impact on the economy. To consumers, the value of retailing is in the form of utilities provided. Retailing economic value is represented by the people employed by retailing as well as by the total amount of money exchanged in retail sales.

CONSUMER UTILITIES OFFERED BY RETAILING

The utilities provided by retailers create value for consumers. Time, place, possession, and form utilities are offered by most retailers in varying degrees, but one utility is often emphasized more than others.

Providing minibanks in supermarkets as wells Fargo does, puts the bank’s products and services close to the consumer, providing place utility. By providing financing or leasing and taking used cars as trade-ins, Saturn makes the purchase easier and provides possession utility. Form utility-production or alteration of a product is offered by Levi Strauss and Co. as it creates “Original Spin” jeans to meet each customer’s specifications. Finding toy shelves stocked in May is the time utility dream about by every child (and many parents) who enters Toys “R” US. Many retailers offer a combination of the four basic utilities. Some supermarkets, for example, offer convenient location (place utility) and are open 24 hours (time utility). In addition, consumers may seek additional utilities such as entertainment, recreation, or information.

           CHANGE IN RETAIL INSTITUTION

Retailing is the most dynamic aspect of a channel of distribution. Store such as factory outlets show that new retailers are always entering the market, searching for a new position that will attract customers. The reason for this continual change is explained by three concepts. These are wheel of retailing, the retail accordion and the retail life cycle.

WHEEL OF RETAILING THEORY

According to Rachman, et al. (1980), changes in retailing are cyclical. At first, a new store type changes an existing institution by cutting prices, using crude facilities, giving few services, and offering only a limited merchandise selection. Gradually, they acquire more elaborate establishments and facilities, which require both increased investments and higher operating costs. Finally, they nature as high-cost, high-price merchants, vulnerable to newer retailers who in turn, go through a similar wheel pattern.

The wheel of retailing hypothesis according to pride and Ferrell (2008) states that “new retailers usually enter the market as low-status, low-margin, and low-price operators”. This theory or hypothesis explains many changes in retailing. But it must be noted that not all changes in retailing result from an effort to cut costs. An instance is the vending machine which is a high cost innovation but is recording elements of success.

RETAIL ACCORDION

In the words of Mason and Mayer (1984), the accordion theory of retail development focuses on changes in the width of the product mix offered by the types of retail institutions. The theory states that “Retail institutions offer a product mix that is first very wide, then much narrower, and then returns to a wider product mix. This theory was based on the experience of retail development in the U.S.A. The development started with the general stores some of which developed into departmental stores with narrower product mix. Mail-order stores developed later with more specialized lines and were followed by single-line and specialty stores. Now there are the conglomerate merchants which are retail empires combining   several types of stores under one management.

RETAIL LIFE CYCLE THEORY

The retail stores are here likened to products which have life cycles. Kevin Roger et al (2003) identified four stages – early growth, accelerated development, maturity and decline. The early growth may also call the innovative stage. The movement to a new phase is brought about by competitive pressure, but not necessarily related to cost cutting.

In the early or innovative stage, a new type of retail institution emerges with distinctive offers to the consumers. Such offers may include lower prices, ease of shopping location, distinctive product assortment and unique promotional techniques.

During the accelerated development stage, sales volume and profits grow rapidly. These are indicators that attract many competitors and efforts by existing firms to sustain growth, would result in increased operating costs.

At the maturity stage, sales growth and market share level off. The firms would have assumed larger status with increased inventories that may increase space and storage costs. In addition, new forms of competition from other retailing firms may set in.

These maturity associated problems contribute to the decline stages. At this stage, sales drop drastically and profits may be low or negative. During this stage, retailers struggle to avoid decline by repositioning their store or by modifying their marketing approach.

The implication of this theory is that business people going into new type of retailing have less time than ever before to recover their investments. In other words, retailing is becoming more risky.

            ADVANTAGES AND DISADVANTAGES OF SMALL AND LARGE SCALE RETAIL ORGANIZATIONS.

ADVANTAGES OF SMALL RETAIL OUTLETS

These types of outlets appeal to people with lean resources and offer the following advantages

a.     Location: - They can easily be located at places which are convenient for both the retailers and the buyers. This advantage derives from their size.

b.     Personal contact: - Small retail outlets create avenue for the effective interaction between the retailers and the buyers. Being mostly neighbourhood stores, both sellers and buyers know themselves and can easily exchange pleasantries.

c.      Motivation to work: The owners are usually independent retailers who depend on their stores for livelihood. They regard the store as a part of them and are strongly motivated to work for the success of the stores. The retailers appreciate that they well fall or rise in status with the operations of the stores. This accounts for long operating hours of most of these stores without any grudge by their owners.

d.     Job opportunity: Small retail outlets require little amount of money to take off. This has encouraged many jobless people to start on their own.

DISADVANTAGES OF SMALL RETAIL OUTLETS

The disadvantages associated with small retail outlets can be examined by looking at their scope of operation. By their nature, the scope of operation is usually narrow. The immediate implications are that such retail outlets lack the financial resources, and manpower required for the efficient management of a business.

Lack of financial resources makes expansion difficult. The retailer under such a situation cannot take opportunity of low prices, cash and quantity discounts. Retail outlets under consideration are usually small and qualified hands will neither accept to work in them nor will their owners make attempts at recruiting them. This accounts for why they remain as one-man business for a long time. There are, however, few small retail outlets whose owners have strived in elevating both their status and capital base.

ADVANTAGE OF LARGE SCALE RETAIL ORGANIZATION

Large retail outlets command relatively huge financial resources and this enable them to increase their capital base. The advantages they have arisen from this capital base are:

a.     Buying power: These retail organizations have the capital and even can afford to buy large quantities of goods at a given time. They are therefore regarded as “valued customers”. This entitles them to reasonable trade, quantity and cash discounts.

b.     Division of labour: As large retail organizations they need specialist hands to negotiate their purchases, to handle their accounting system, to supervise sales etc. the engagement of these experts makes for division of labour with its attendant benefits.

c.      Access to Capital: In business, the biblical saying that “to those who have, more will be added onto them” is very true. Small retail outlets cannot have access to easy capital because their capital base is small and no security to use for a loan. But large retail organizations have strong capital base and good security which enable them to borrow from the financial institutions very easily. They can also attract credit facilities faster from their customers.

d.     Distribution: These retail organizations buy in large quantities which mean that they can move their goods in car load quantity. This reduces the cost of transportation. In addition, they have their own warehouses and thereby minimize the storage costs.

e.      Prestige: - Large retail organization, like Kingsway, leventis, etc. have imposing stores, good layout, attractively displayed shelves, etc. which have combined to give them prestigious image within the society. Customers have high opinion of such stores and they make sure they dress well while going to shop in them.

f.       Research and experiment: Given their financial base, they are in a very good position to research and carryout experiments on new methods of retailing.

DISADVANTAGES OF LARGE SCALE RETAIL ORGANIZATION

These disadvantages derive from the large size of these organizations. They include lack of personal contact, complex supervision, high overhead costs and problem of adjustments.

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