Topic 2 of 7 · Form 3
Retail and wholesale trade
Functions of the retailer (selling in small quantities, stocking variety, convenience, information, credit, after-sales service).
Notes for this topic 1 file, in order
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Retail trade
Functions of the retailer (selling in small quantities, stocking variety, convenience, information, credit, after-sales service).
Types: independent retailers (tuck shops, market stalls, hawkers), multiple/chain stores, supermarkets and hypermarkets, department stores, franchises, cooperatives, mail order, vending machines, and e-commerce (online shopping and mobile payments).
Trends: self-service, shopping centres, out-of-town locations, loyalty schemes, online and mobile retailing.
Wholesale trade
Functions for manufacturers (buying in bulk, storage, finance, advice) and for retailers (breaking bulk, variety, credit, delivery, information). Types: cash-and-carry, delivery and specialist wholesalers.
Elimination of the wholesaler
When large retailers buy direct, perishable or expensive goods, or manufacturers sell directly – but the wholesaler's functions must still be performed by someone.
Worked example: Why might a small tuck shop prefer a cash-and-carry wholesaler?
It can buy small quantities of many lines at lower prices than retail, choose goods personally and take them away immediately.
Check yourself
- Give two services that wholesalers provide to retailers.
- Why have supermarkets grown in popularity?
- Give one advantage of e-commerce for consumers.
Show answers
- Any two: breaking bulk, credit, delivery, variety, information, storage.
- Choice under one roof, lower prices from bulk buying, self-service, convenience.
- Any one: shopping at any time, wider choice, price comparison, home delivery.
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