What are types of retail traders/retailers?


Retailers are classified based on amount of capital invested on them. Thus we have:
1.     Small scale and
2.     large scale Retailers.

The followings are different forms of small scale retailers;
Itinerant traders. These have no fixed address or premises of business and move frequently so they can target new suburbs. They carry very little stock. Examples are Hawkers who carry on their bicycle or motor cycles and move home to home Also paddlers who carry their stock with themselves.
Road side retailers. These tend to sell their products near bus stops, a market place theatre halls and along traffic jams. They sell products like sweets, fresh fruits and water.
Single shops. These are very common in streets and localities, each shop is independent from the other. They are single owned or a family owned
Tied shops. These are single shops that sell product of one manufacturer only. Example is a petrol stations an azam ice-cream shops

Types of large scale retailers
•        These are classified based on the amount of service offered to the customers.
•        Self-service
•        Limited service
•        Full service

Specificity stores/Multiple shops (chain shops). These are the stores owned and managed by one concern. They have the same merchandise and stock, similar in appearance and price. Examples are Mc. Donald, Zara Fashion and Shoprite which are scattered in various countries and cities.
 
 Multiple shops have the following advantages:
  1.  They have capacity to remedy shortages of stock at any branch by transfers from another
  2.  Economies of large scale operations can be achieved
  3.  There is possibility of staff exchange and having standardized training procedures so as to provide the same quality service.
  4.  Large number of customers can be met at a shorter distances
  5.  Head office can advertise for all branches to reduce cost of advertisement
  6.  Losses of some branches can be absorbed by gains from others.

  Disadvantages of Multiple stores
  1.  Lack of initiatives from branch managers to meet local specialized conditions because every thing is controlled by the head office.
  2.  They require huge capital in their start
  3.  Difficult to control as branches increase
  4. Losses from other branches offset by gains from others can be de-motivating those gained

Departmental stores  are the stores that carry several product lines typically clothing, home furnishings, household goods with each line operated as a separate department managed by specialists. Example Shoprite in Mlimani city where there is clothing department, electronics, footwear, etc.
 
Advantages of Departmental Stores
  1. There are big sales and profit since it’s a one stop shop.
  2.  Possible for a department to advertise for all departments
  3.  In case of loss to one department, the gained ones can offset.
  4.  Enable customers to obtain all their needs under one roof
  5.  Advantages of specialization are available
 
Disadvantages of Departmental Stores
  1.  Require huge initial capital
  2.  Most of them are located in towns
  3.  Sufficient customers are found in big cities where rent is most expensive
  4.  Do not know their customers well since the customers are not permanent.

Supermarket is a large service store store whose size is normally not less than 2000 square feet of floor space that sells primarily food and household products. Example Imalaseko in the City centre.
  
Advantages of Supermarkets
  1. Speed and convenience for customers partly because no time is wasted for negotiation
  2. The customer is able to know the price straight away
  
Disadvantages of Supermarkets
  1. Problems of security in the store as some people may be tempted to steal. 
  2.  Inconveniences at the counter especially at peak hours.

Mail order shops involves buying and selling by post. Some firms specialize in this type of business. Others like departmental stores undertake it in addition to ordinary retailing. Catalogues or price lists are issued and sometimes order forms are printed in newspapers or other journals. A purchaser sends his order by post, enclosing payment or deposit where hire purchase terms are offered or the goods may be dispatched C.O.D. (Cash On Delivery). For heavier and bulky goods orders are received through the post office but road, or water transport dispatches the goods.example. Amazon online stores
  
Advantages of Mail Order Shop
  1. Credit is often issued which attracts many buyers
  2. It is convenient to be able to choose goods at home.

Disadvantages
  1. Goods can’t be seen or handled before being ordered.
  2. Heavy costs of packing, postage, transportation, advertising, printing and distributing catalogues
  3. A common man finds it convenient to go to a shop and buy what he needs than to go through all these formalities at the Post Office.
v  
   Other types of large scale stores are:
Convenience Stores are relatively small stores located near residential areas, open long hours seven days a week.
Co-operative stores is a retail outlet, which is owned by a number of members. Members elect representative who run the store






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