Place- retailers

Question 1

What are the advantages of selling through a retailer?

Answer 1

Retailers are located close to customers.

Retailers often promote the product for the manufacturer.

Retailers employ sales assistants to help sell the product.

Larger retailers buy in bulk.

Question 2

What are the disadvantages of selling through a retailer?

Answer 2

Retailers take a cut of the profits.

Retailers may alter the price of the product and so have an effect on the image of the product.

The product will face competition from other products stocked by the retailer.

Question 3

What are the 6 retailer types?

Answer 3

Hypermarkets and superstores
Convenience supermarkets
Out of town retail parks
Online retailers
Discount stores
Department stores

Question 4

What are hypermarkets and superstores?

Answer 4

There has been a growth in massive supermarkets, which sell many goods and services under one roof. The largest of these are known as hypermarkets e.g. Tesco Extra.

Question 5

What are the advantages of hypermarkets and superstores?

Answer 5

Most hypermarkets are open 24/7.

A huge range of products is offered to customers.

Question 6

What are the disadvantages of hypermarkets and superstores?

Answer 6

Lack of competition from high-street stores can lead to poorer quality products.

Question 7

What are convenience supermarkets?

Answer 7

Due to changing work patterns and lifestyle changes, there has been a growth in smaller supermarkets appearing in convenient locations, such as M&S Simply Food or Little Waitrose in city centres, near transport hubs or on forecourts.

Question 8

What are the advantages of convenience supermarkets?

Answer 8

Cater for the changing needs of customers so are guaranteed footfall.

Prices can be slightly higher than larger supermarkets due to the convenience factor.

Question 9

What are the disadvantages of convenience supermarkets?

Answer 9

Limited choice of products due to smaller store sizes.

There can be high levels of waste as it is harder to predict customer numbers than it is for larger, more traditional supermarkets.

Question 10

What are out of town retail parks?

Answer 10

Out of town retailing is now found on the outskirts of most major towns in the UK, with good infrastructure such as road links and free car parking e.g. Glasgow Fort.

Question 11

What are the advantages of out of town retail parks?

Answer 11

Infrastructure attracts customers.

Often near amenities such as restaurant chains and cinemas which can increase footfall.

Larger store sizes mean a good product range for low prices due to bulk buying by OOT retailers.

Question 12

What are the disadvantages of out of town retail parks?

Answer 12

Limited choice of stores compared to high street shopping or more traditional shopping malls.

Only suitable for customers with access to transport.

‘Showrooming’ can occur where customer view/try products in store but buy online for a lower price.

Question 13

What are online retailers?

Answer 13

Amazon is the biggest online retailer in the UK. Rather than setting up their own e-commerce site, some manufacturers will sell through retailers like this.

Question 14

What are the advantages of online retailers?

Answer 14

Products can be sol to a worldwide market by online retailers.

Products can be sold 24/7.

Question 15

What are the disadvantages of online retailers?

Answer 15

Customers can’t try or touch the product before buying.

Delivery charges may put some customers off.

Question 16

What are discount stores?

Answer 16

In responses to recession, discount stores have become popular in the UK over the last few years e.g. B&M, Home Bargains etc.

Question 17

What are the advantages of discount stores?

Answer 17

Products are sold for rock-bottom prices, which attracts customers looking for value.

Question 18

What are the disadvantages of discount stores?

Answer 18

Limited product range compared to other retailers.

Some customers don’t like the image of discount stores.

Question 19

What are department stores?

Answer 19

Often flagship stores of any shopping mall or town centre, stores such as John Lewis and Debenhams sell a huge variety of items from clothing to beauty products to home furnishings.

Question 20

What are the advantages of department stores?

Answer 20

Many target markets can be catered for.

Central locations can attract customers, commuters, tourists etc.

Can benefit from impulse buying e.g. a customer might go to get a perfume but leave with much more as items ‘catch their eye’.

Question 21

What are the disadvantages of department stores?

Answer 21

More and more department stores are closing due to the high rents and other expenses for the prime retail sites they often occupy.

Staff supervision can be difficult.