COMMERCE 101.

             CLASSIFICATION OF RETAIL TRADE.

Hey Guys, we are here again to learn study, understand and have fun. Let’s get straight to the matter at hand.

                                             RETAIL TRADE

         SMALL SCALE TRADE                    LARGE SCALE TRADE

         -HAWKING                                           -CHAIN STORE

         -MOBILE SHOP                                    -DEPARTMENTAL

         -TRADING                                            -SUPERMARKET   

         -MARKET TRADE                                -DISCOUNT HOUSE

         -STREET/ ROAD                                  -VARIETY STORES

         -STORES (URBAN & RURAL)               –HYPER MARKET

                                                                  -RETAIL COOPERATIVE.

                    METHOD OF CLASSIFICATION OF RETAIL STORE.

1.     Type of Good offered for Sale.

2.     By Location for example Rural or Urban Areas.

3.     By Ownership for example Independent or Cooperative.

4.     Number of Employee’s.

5.     By the Size of Employee’s.

SMALL SCALE TRADE.

As the name implies, it involves types of trading that are small in nature. For examples

a.)  HAWKING- is a kind of Trade whereby the person moves from one place to another carrying the
goods on their heads, bicycles or vehicles etc. They can be seen in motor parks or Bus-stops.

Characteristics of Hawking:

1.     It Provides Door to Door Services.

2.     Different Goods are sold to consumers in small units.

3.     They do not pay rent for shops.

4.     It involves movement of Goods on the Head with Tray or Wheel Barrow.

Advantages of Hawking:

1.     Small amount of Capital is needed to setup the Business.

2.     It Provides opportunity for Self Employment.

3.     It Increases Sales and Profit.

4.     Price of Goods are Low.

           Disadvantages of Hawking:

1.     It disturbs the Free Flow of Traffic.

2.     Hawkers are exposed to the dangers of the Road.

b.)   MOBILE SHOP- is Trade where by Goods are arranged in motor van and are moved from one place to another, until it reaches the final consumers. A wide variety of Goods are sold through mobile shops.

c.)    STREET/ROAD SIDE TRADING- is a Trade where the Traders display their Goods along the street, roads or outside the gate of schools, companies, offices in town or cities. They sell variety of Goods, for example Clothes, Bread, Snacks, Books etc.

Features of Road Side Trading:

1.     They are found on busy roads or Junction.

2.     The Prices of their Goods are very low.

3.     They sell variety of Goods.

d.)   MARKET TRADERS- are Traders who open at a specific time of the day. They construct shades in a particular location to transact Business.

Features of Market Traders:

1.     They open at a Specific Time.

2.     The Traders are zoned according to the type of Goods sold.

3.     They have Shops or Stores.

e.)    STORES- operate in the urban and rural centres. They are located in the Residence of the Trader or Rented Places. They sell wide range of Goods to meet consumer’s needs.

Reasons for Survival of Small Scale Retailers:

1.     Credit Facilities.

2.     Personal Relationship.

3.     Quick Decision Making.

4.     Small Capital.

5.     Low Prices.

            Difficulties Encountered by Small Scale Retailers:

1.     Competition.

2.     Low Capital.

3.     Poor Location.

This concludes our session for today, hope you have had fun and learnt as well? For any questions send a message to- dividiamond@gmail.com. Until we meet again, remain ever blessed.