INTERNAL TRADE-

RETAIL TRADE
• Types of retail trade
 Types of
retail
trading

On the basis Fixed place

Merchandis
of of business
e handled
ownership or not

Itinerant Fixed shop

retailers retailers
 Itinerant retailers
Itinerant retailers refers to the retailers who have no fixed
place of sale.
•They move from one place to another in search of customers.
•They are also known as mobile vendors.
•They deal in low price , non standard items.
•They deal in daily use items and require a small investment.
Features of itinerant retailers…..
oThey operate with limited recourses(small traders).
oThey deal with consumer daily products…e.g. Ice cream
vendor, fruits etc.
oThey provide products available at door step of the customers.
oThey don’t have any fixed business entity to keep their
inventory, so they have to store at their homes or at some other
places.
 Types of
itinerant
retailers

Peddlers and
Market traders Street traders Cheap jacks
hawkers
 Peddlers and hawkers...
Hawkers and peddlers move from street to street in search of costumers .they are
amongst the oldest form of retailers in the market place even though they didn’t lost
their utility till now. They carry goods on wheel carts, bicycles , on their heads or
on cycle rickshaw to sell their products at the door step of customers.
The main features of hawkers and peddlers are
They move from street to street in search of customers.
They deal with non branded and local items.
They supply the goods at the door step of customers.
They have no fixed price. The prices are fixed according to the bargaining
between the customers and the hawkers and the peddlers.
The advantage of this form of retailing is the convenient service to the customers.
 Market traders...
Market traders sell their goods on the fixed days in different market places. Their
weekly markets are fixed. Usually these traders deal with one particular line of
products. they deal with low price and low quality goods. These traders set up on
any special occasion or weekly once. For e.g. Fabrics, ready-made garments, toys
etc. available in one of the famous Monday market in karol bagh.
 Street traders...
Street traders are small retailers who are found at places where there is
huge population.eg. Railway stations, bus stands etc.
The main features of street traders are
They generally operate near public places .
They deal with variety of goods.
They deal in low price products of common use.
People find it convenient to pick up items.
 Cheap jacks...
Cheap jacks display their goods in an independent shops of a
temporary nature in the business locality. E.g. they deal with items
as well as services such as repair of watches, shoes etc.
The main features of cheap jacks are
They hire small shops or display goods in tents in residential
colonies.
They shift from locality to locality depending upon the prospects
of business.
They deal in low price ,house hold articles and other common
services.
 Fixed shop retailers
The retailers having fixed place of sale are known as fixed shop retailers. these
retailers have shops in the market place or residential localities. They don’t move
from one place to another pin search of customers. Customers come to their shops in
search of products.
Fixed shop retailers can be further classified into two categories…

Small scale fixed retail shops

Large scale fixed retail shops

Features of fixed shop retailers…..
They have greater resources and operate on a relatively large scale
comparative to itinerant traders.
these retailers deal with all consumer durables as well as non
durables.
These retailers have greater credibility as these provide greater
services to the customers such as home delivery, provide guarantee…
etc.
 Types of
fixed shop
retailers

Small
Large stores
retailers

General Speciality Street stall Secondhand Departmental Chain stores

stores shops holders goods shop stores
Small
retailers
….
 General stores…
General stores are commonly located in local markets and residential areas.
The main features of general stores
These stores deal in items of daily use like groceries, confectionary,
stationary, soft drinks etc..
They provide free home delivery, credit facility, etc.
They create personal relationship with regular customers and keep them
happy and satisfy.
Most of the customers are of same locality and the factor of success for these
is the image of the owner and the relationship he has established with them.
 Speciality shops...
These stores are a small shops which deal
with one line of product only. It is very
popular, particularly in urban areas instead
of selling variety, these retail stores
specialized in the sale of specific line of
product. They keep all the brands of that
product. Customer find it convenient to
enter a specialty store to take advantage of
specialization in a particular segment of the
market. E.g. jeans shops may have jeans of
Levi's, lee, killer, TNG etc.
 Street stall holders...
These shops are situated at street crossing or on main roads or
corners of colonies. They are known as street stall holder they deal
mainly in goods of cheap variety like cigarettes, pans, newspaper
etc.. These shops have limited space .they deal in low priced
articles.
 Secondhand goods
shop...
These shops deal with second hand goods or used articles. Persons
who cant afford to buy new goods purchase goods from such
shops. The goods are sold at low prices because these are used
goods these type of shop owners buy the goods from private and
public auctions.
Large
stores…
..
 Departmental stores
A Departmental store is a large retail showroom having number of departments under
one roof, each departmental specializing in one line of product like big bazaar ,super
market etc.
 Features of Departmental

stores….
Large size…a Departmental store is a large retail showroom requiring a large capital investment.

Wide range….a Departmental store deals with a deals with a wide range of products from low
priced to very expensive goods .Different varieties of goods are available in different departments.

Central purchases…purchases of all the Departments are made centrally .The departmental
managers give a list of their requirements to the general manager who makes purchases for all the
departments.

Central location…a Departmental store is located at the central place or in shopping Centres so
that people from different parts of the city can easily reach there.

Services….Departmental stores provide a number of services and facilities to the customers like
post office, telephone booth ,restaurant ,bank ,home delivery etc.

Elimination of middlemen…departmental stores buy goods in large quantities. They buy the
goods directly from manufacturers hence eliminating the middle man.
 Advantages of Departmental
stores…..
Attract large number of customers…As departmental stores located at central places, they
attract a large number of customers during best part of the day.
Convenience in buying…As departmental stores offer large variety under one roof thus it
makes customer convenient for buying almost all goods of their requirements at one place.it
enables customers save time and the effort of making purchases at different places.
Attractive services…As departmental stores offer various services to their customers such
as home delivery of goods, execution of telephone orders, grant of credit facilities, provision
for rest rooms, telephone rooms etc.
Large scale operations…As departmental stores operate at a large scales so they can easily
avail the benefits of large scale operations. These stores buy goods in bulk therefore they
enjoy the benefit of special discount.
Promotion of scales…As departmental stores can advertise on a large scale as they have
large financial resources. the sales promotion and advertisements result in increase of their
sales.
Limitations of Departmental
stores…..
×Lack of personal attention…due to large scale of operation the owner or proprietor
of departmental store cannot pay adequate personal attention to the each and every
customer. He has to appoint salaried staff to attend to the large number of customers.
×High price…due to high operating cost, the prices charged in a departmental store
are higher than the prices in a small shops. Only rich people can afford to buy goods
from departmental stores.
×Inconvenient location…as departmental stores are located at a central location of a
city.it is not convenient to many people located in residential areas and people who
want goods in small time.
×High possibility of loss…due to large operational costs, the chances of incurring
losses in a departmental stores are high.
Chain stores
Multiple shops refer to a number of identical retail shops located
in different parts of the city. These shops are owned and controlled
by a single organization. These can be established by
manufacturers or traders. E.g. Bata stores, DCM stores etc.
Features of chain stores…..
Large size…chain stores operate on a large scale .a huge investment is required to
set up identical shops in different parts of the city.
Location…These shops are located near residential areas or work place as well as
central place of the city to attract more people.
Centralized purchasing…the goods for all the chain stores are purchased by the
head office to maintain the uniformity in products sold at different retail showrooms.
Supervision…Each retail shop is under direct supervision of branch manager, who
is held responsible for its day to day management. The branch manager sends daily
reports to the head office in respect of the sales, cash deposits etc.
Sales and ash deposits…The prices f goods in such shops are fixed and all sales
are made cash basis that is deposited daily into local bank a/c on behalf of head
office and send a report to the head office in this regard.
 Advantages of chain stores…..
Economies of scale ….goods for all chain stores are purchased by head officers. When
they buy in bulk, they have heavy discounts.
No bad debts ….in chain stores, goods are sold for only for cash. So there are no chances
or fear for bad debts.
Transfer of goods…the goods not in demand in a particular locality may be transferred to
another locality where it is in demand.
Diffusion of risk…the losses incurred by one shop may be covered by profits in other
shops, reducing the total risk of the organization.
Low cost…
Flexibility…if the shop is not operating at a profit, the management decides –whether to
close it down or shift it to some other place without effecting the profitability of he
organization.
Limitations of chain stores…..
×Limited variety…chain stores are specialized in one line of products. These stores
don’t offer variety of products under one roof like departmental stores.
×Lack of initiative……the personnel managing the multiple shops have to obey the
instructions received from the head office and it takes away the initiative from them
to use their creative skills to satisfy customers.
×Lack of personal touch…the chain stores are managed by the branch managers
who are paid employees and not owners. They don't try to convince and pursue the
customers to buy.
×Difficult to change demand…if the demand of the goods change rapidly, the
management have to sustain losses because of large stocks lying unsold at central
depot.
Made by:- Rayon
keerthi raj
Mohd shad
Jhansi