Place - Retailers Types

Question 1

What are the Retailer types?

Answer 1

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

Question 2

What are Hypermarkets and superstores?

Answer 2

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.
Example: Tesco Extra

Question 3

What are the advantages of Hypermarkets and superstores?

Answer 3

• Most hypermarkets are open 24/7.
• A huge range of products is offered to customers.

Question 4

What are the disadvantages of Hypermarkets and superstores?

Answer 4

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

Question 5

What are Convenience stores?

Answer 5

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 6

What are the advantages of Convenience stores?

Answer 6

• Cater for the changing need of customers so are guaranteed footfall.
• Prices can be slightly higher than larger supermarkets due to the convenience factor.

Question 7

What are the disadvantages of Convenience stores?

Answer 7

• Limited choices 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 8

What are Out-of-town retail parks?

Answer 8

Out-of-town (OOT) 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.
Example: Glasgow Fort

Question 9

What are the advantages of Out-of-town retail parks?

Answer 9

• 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 10

What are the disadvantages of Out-of-town retail parks?

Answer 10

• 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 customers view/try products in-store but buy online for a lower price.

Question 11

What are Online retailers?

Answer 11

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

Question 12

What are the advantages of Online retailers?

Answer 12

• Products can be sold to a worldwide market by online retailers.
• Products can be sold 24/7.

Question 13

What are the disadvantages of Online retailers?

Answer 13

• Customers can’t try or tough the product before buying.
• Delivery charges may put some customers off.

Question 14

What are Discount stores?

Answer 14

In response to the recession, discount stores have become popular in the UK over the last few years.

Example: B&M Homestores, Home Bargains and the German discount supermarkets, Lidl and Aldi.

Question 15

What are the advantages of Discount stores?

Answer 15

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

Question 16

What are the disadvantages of Discount stores?

Answer 16

• Limited product range compared to other retailers.
• Some customers don’t like the image of discount stores.

Question 17

What are Department stores?

Answer 17

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 furnishing.

Question 18

What are the advantages of Department stores?

Answer 18

• 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 19

What are the disadvantages of Department stores?

Answer 19

• 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.

Question 20

What are the advantages of a Manufacturer selling through a Retailer?

Answer 20

• 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 21

What are the disadvantages of a Manufacturer selling through a Retailer?

Answer 21

• 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.