2017 WAEC Commerce Theory Explain the following retail outlets: (i) department store (ii) mobile shop (iii) chain store (iv)…

Explanation

(i) Departmental Stores -

1. It is a large scale retail unit in which many different stores are housed in a large building under the same roof.
2. They are divided into different departments or stores.
3. Each department specialises in the sale of a particular type of product
4.  Every product carries fixed price tag thereby making purchases simple and easy
5. Every department store has a General Manager who co-ordinates the activities of all Sectional Managers
6. They are found mainly in urban centres
7. They offer opportunity for one stop buying

(ii) Mobile Shop

1. They operate from motor vans or trucks and move from place to place 
2. They sell a wider range of goods and are accessible to the consumers
3.  They advertise their goods through playing of music, ringing bells or other methods.
4. They offer personal service to their customers.

(iii) Chain Stores

1. They are large scale retail business units with standard shop front scattered all over the country  
2. They deal in one line of product in all their branches
3. Goods sold in all their branches are manufactured or purchased by the Head Office and distributed to all  branches
4. Their prices are pre-determined by the Head Office
5. They are found in urban centres
6. Goods have price tags.

(iv) Mail Order Business

1.  It is operated through the post
2.  Its transaction is aided by the use of illustrated catalogues which customers use to order goods
3.  Payment for goods is sent with order or through cash on delivery basis
4. It incurs lower overhead cost
5. It operates from its warehouses.

(v) Supermarkets 

1. They are large scale retail self-services stores
2. They stock mainly household goods and food items under the same roof
3. Goods displayed have price tags for easy selection
4. Facilities like trolleys, baskets or trays are provided for customers to ease movement, selection and carriage 
5. Gods collected are paid for and cross checked by the security guards stationed at exit doors
6.  They provide packing space for their customers
7.  They are located in city centres/population centres