Main Features:
1. Variety chain stores combines the features of multiple shop and department store
2. Unlike multiple shops, variety chain store deals in many types of retail goods. They vary from clothing of reasonable quality, records, hardware, stereo sets to foodstuffs
3. It offers a wide variety of goods, however, the goods sale in the variety chain store are not as exclusives those offer by the department store and appeal more to the middle and working class population
4. It occupied smaller premises and does not offer any facilities as the department store
5. The volume of sale of a few variety chain stores are so large that those stores have been able to have goods manufactured according to their own special requirements, design and delivery dates.
6. Good examples of variety chain stores are Mark and Spencer in England
Supermarket
Main features:
1. Goods are attractively displayed and within the easy reach of shoppers. Before they leave, they must pay for their total purchases at the cash register and this is called self – services
2. The goods sold are normally foodstuff, personal and household goods and branded goods where there are light and inexpensive goods
3. The price is fixed and printed on each item. Since the manager buys in bulk directly from the producers therefore the goods are sold at a lower prices
4. Supermarkets also provide many facilities to the shoppers like air – conditional, car parks, toilets, baskets, trolleys, etc
5. Examples: Jaya Supermarket in Kuala Lumpur and Yaohan in Singapore
Advantages:
1. The supermarket buy in bulk direct from the manufacturer, therefore they are able to sell to customers at very competitive price
2. It employs highly trained managers and other specialized staff to ensure that the supermarket is run efficiently
3. Customers benefit from quick service and can take their own time to select the goods
Disadvantages
1. Open displayed encourages shop lifting
2. No personal services to consumers
Hypermarket
Main features:
1. A huge hypermarket normally twice as large as a supermarket where the floor space can be greater than 2500 sq. meter and often sided outside large town
2. Its offer a wide range of goods and a great variety of foodstuffs
3. It attract shopper who want to buy large amount of goods
4. The price is fixed and printed on each item. Since the manager buys in bulk directly from the producers therefore the goods are sold at a lower prices
5. Its also provide many facilities to the shoppers like air – conditional, car parks, toilets, baskets, trolleys, etc
6. Example: Boulevard in Miri, Giant in Kuala Lumpur
Advantages:
1. The hypermarket buy in bulk direct from the manufacturer, therefore they are able to sell to customers at very competitive price
2. Customers benefit from quick service and can take their own time to select the goods
3. It employs highly trained managers and other specialized staff to ensure that the business is run smoothly and efficiently
Disadvantages:
1. Open displayed encourages shop lifting
2. No personal services to consumers
3. Leads to the decline of business in town centre
Mail Order Business:
Main features
1. Mail order business is run by manufactures, department store or specialist mail order warehouses
2. They get customers by sending catalogues to potential customers by means of extensive advertising in the daily newspapers and through agents
3. Goods are ordered through mail
4. Goods ordered are also mailed to the parcel post
5. Goods may be sent “on approval”, the buyer usually have about 7 days to examine them. Sometimes, however, the prescribed method of payment is C.O.D (cash on delivery) or C.W.O (cash with order)
6. Example of goods sold: Bag, costume, t-shirts, jewellery, books, shoes etc
Advantages:
1. The mail order business buys on very favourable terms because it buy in bulk directly from the manufacturer
2. The premises can be sited in the less expensive areas of the country or town where wages and rentals are lower
3. There is no need to employ qualified sales stuff. Only unskilled cheap labour is needed like housewives
4. The business can tap a wide market via advertising and agents
5. Customers can buy on credit
6. Customers may return unwanted goods easily
Disadvantages:
1. The high cost of catalogues and advertising
2. There are high operational expenses in the form of commissions to agents and costs of packaging and postage
3. There is the need to hold large stocks with the risk of losses from changes in taste and fashion or from falling price
4. There is the risk of bad debts
5. Lack of personal contract
6. Customers can’t examine the goods before payment if it is by C.O.D or C.W.O
7. Customers may be cheated by unethical operators
8. Goods may be bought cheaper direct from the shops
9. Sometimes, there may be a delay in the delivery of the goods
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