Meaning of Small-Scale Retail Trade Part 2

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Small-scale retail trade is one where a limited variety and also limited quantity of goods are sold within a local area. It requires less capital and provides goods to a limited number of customers. There are verities of retailers engaged in small scale retail trading. They can be classified as:

Itinerant Retailing

Itinerant retailing is a type of small-scale retail trade in which retailers move around and sell a variety of items directly to the consumers. They do not have a fixed shop where they can sell. You must have seen them distributing newspapers early in the morning; selling peanuts, bangles, toys etc. in buses and trains; selling fruits and vegetables in your locality using a cart, selling ice-cream, namkeens etc. on a cycle, selling rice, earthen pots or even carpets by using a cart, etc. You can also see them on pavements in your locality. In towns and cities, we come across different type of itinerant retailers. There are traders who sell their articles on fixed days at different market places. In villages these market places are called “Haat” and in towns or cities they are called “weekly bazars”. The itinerant retailing also includes persons selling articles from door to door.

Fixed Shop Retailing

The retailers sell goods and services from a fixed place known as ‘shop’. These shops are usually located at market places or commercial areas or near residential localities. These shops normally deal with a limited variety of goods. The goods are stored as well as displayed in the shops.

On the basis of the type of goods which the fixed shops deal in, we can classify this form of retailing as under.

General Store or Variety Store

These stores, as the name suggest, deal with a variety of items of general use. They sell products mostly required by people for their daily use. For example, in a variety store you can find different items on toiletry, hosiery, biscuits and snacks items, grocery, cosmetic, gift items and stationery, etc. Normally these retailers make direct sale by cash only.

Single Line Store

These stores deal with a specific line of goods. We have seen medicine shops, bookshops, toy shops, ready-made garment shops, etc. These are all single line stores. They sell goods of different size, brands, designs, styles and quality of the same product line.

Speciality Store

Speciality stores deal with products of specific brand or company. All varieties of any particular brand or manufacturers are made available in these stores. All types of different company’s product are available at same place.

Meaning of Large - Scale Retail Trade

Large-scale retail trade is one where capital investment is more and it deals with large volume of goods. It caters to the needs of a large number of customers. Super bazars, Departmental stores and Multiple shops are examples of large-scale retail trade organization.

If we want different thing of daily need at same place large scale retail trade is available. Sometimes goods of our choice may not be available in a particular shop. Then we need to visit other shops. Sometimes we may also face a heavy rush in the market. These are some general problems you may face in the local market.

If we don’t have sufficient time to visit different shops to buy the items of our need, we may like to find a shop where we can get most of our requirements and have a choice from different varieties. Or if we are very busy, we may want goods to be available to us at our home. Again, if we need a well-known branded product, it may be convenient for us if there is a shop where we can get it at a reasonable price.

Actually, these facilities are available in some retail shops in big towns and cities. They make available different types of goods under one roof. These shops are normally situated at central places and sell goods to a large number of customers. In some of these shops you will find a variety of goods and in some shops, you will find goods of single type like shoes, shirts, etc. made by single manufacturer. All these shops buy goods in large quantities and sell them to individual consumers as retailers do. Sometimes big manufacturers also sell their products directly to the customers by opening their shops in different parts of the country.

Large scale retail trade is a type of trade in which either single type of goods or a variety of goods are made available to a large number of consumers in a big shop under a single roof or may be made available at the convenience of customers.

Features of Large-Scale Retail Trade

  • It deals in a variety of goods of daily need and makes these goods available to the customers at their convenience.

  • It purchases goods in bulk directly from the manufacturers, thus avoiding middlemen in the process of purchase of goods.

  • It provides service to a large number of customers.

  • The size of the shops/stores is comparatively bigger than the local retail shops/stores.

  • It requires huge capital investment to start and run the business.

  • It generally sells goods to the customers on cash basis.

Forms of Large-Scale Retail Trades

In India, generally we find the following types of Large-scale retailing business

  • Departmental Store

  • Multiple Shops

  • Super Bazar

Departmental Stores

A Departmental Store is a large-scale retail shop where a large variety of goods are sold in a single building. The entire building is divided into a number of departments or counters. In each department specific type of goods like stationery items, books, electronic goods, garments, jewellery etc. are available. All these departments are centrally controlled under one management. Once you enter such a store you can do all your shopping by moving from one department to another. To encourage people to do all their shopping in one store, these stores also provide facilities like restaurant, telephone, toilets, ATM etc. for the conveniences of customers.