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The figure shows the channels of distribution. You will notice that goods reach the consumer by one of a number of routes. Retailing Retailing is carried on by businesses which sell goods to the final consumer and most retiling is done by shops. There are many different types of shops and retail outlets. Retailing 1. Independent Retailer/Convenience Store These are usually owned by small businesses, often sole traders. Since they are small they can not buy their goods in bulk and therefore cannot obtain them cheaply. Consequently, prices are often higher in small shops than in large supermarkets. The small shop is often conveniently placed. And it is often open for much longer hours. The pattern for most people is to do the bulk of their shopping in supermarkets and obtain smaller or overlooked items in the shop. Retailing Facing stiff competition, small shops still survive and they do so for the following reason: they provide a convenient service the shop is around residential area. they often have much more convenient hours of opening. small shops because they know their customers, will often give credit and will put goods “on the slate”. Retailing 2. Departmental/Department Stores A department store has been described as a number of shops under one roof, and in fact each department specializes in a particular range of goods. the big advantage that a departmental store has is that it can offer the shopper the opportunity to do all his/her shopping under one roof. and even in many cases have lunch during shopping. Departmental stores offer a variety of credit facilities, for example through the use of account cards. Retailing 3. Supermarkets and Hypermarkets Supermarkets are usually in the control of multiples, although it is possible for an independent retailer to open a supermarket. The distinguishing feature of a supermarket is its size, not the type of ownership. A supermarket has floor space of at least 186 square meters. The hypermarke
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