Question

Write short answer of the following.
1. What is non-itinerant retailer?
2. What do you mean by street stall holders?
3. How is general store popular in retail market?
4. State the functions of wholesaler?
5. Write five functions of a retailer?

Answer 1

1. The retailers who have fixed shops for their operations are known as non-itinerant traders. That is, they sell goods and services from fixed shops and do not move from place to place to serve their customers. For example, retailers functioning from fixed establishments in the local grocery market. Non-itinerant retailers may operate on a small scale basis as well as on a large scale basis. Under small scale shops, retailers deal in a variety of goods however, on a small scale via second hand shops or specialty shops. On the other hand, in large scale shops, the retailers invest huge capital and provide quality goods through shops such as departmental stores or chain stores.

2. Street stall holders are a type of itinerant retailers that operate at street crossings or on road-sides where the flow of traffic is high. They put up temporary stalls at crowded places such as bus stops, railway stations, etc., and mostly deal in goods such as clothes, shoes, grocery items and fast food items. They provide goods at lower rates and attract consumers by calling out or shouting about the goods.

3. General stores deal in goods meant for satisfying the day-to-day needs of the customers, e.g. grocery items, oils, stationary, plastic goods and toiletry products. They are generally found in residential areas or local markets and operate for long hours. These stores also provide a variety of consumer services, such as credit facilities and home delivery. Therefore, they are popular in the retail market.

4. The following are some of the functions of the wholesalers.
i. Facilitate large-scale production: Wholesalers purchase goods in bulk from manufacturers and sell them to retailers in small quantities for further resale. This bulk purchase made by wholesalers enables manufacturers to undertake production on a large scale.
ii. Providing storage facilities: When wholesalers purchase goods in bulk from manufacturers, they store these goods in their godowns or warehouses, reducing manufacturers’ burden of finding proper storage.
iii. Collecting market information: Wholesalers provide different kinds of information to manufacturers as well as retailers, such as information about the tastes and preferences of customers and prevailing market conditions. This, in turn, helps manufacturers produce goods according to the market needs and advice retailers about what to sell at what time.
iv. Sales promotion: Wholesalers also help retailers to increase their sale by undertaking advertisement and sale promotion activities.

5. The following are some of the functions of a retailer.
i. They provide information to customers: Retailers provide information about features, prices and availability of products in the market to customers. This information helps customers decide which products to buy.
ii. They provide information to wholesalers: Retailers provide information, such as the tastes and preferences of customers, market conditions and level of competition in the market, to wholesalers. Wholesalers pass on this information to manufacturers.
iii. They store a wide variety of goods: Retailers store a wide variety of goods based on consumer tastes and preferences and, thus, allow customers to choose from the available range of products.
iv. They facilitate distribution and promotion of goods: Retailers facilitate the distribution of goods to consumers for final consumption. Moreover, since retailers are in direct touch with customers, they can promote the sale of goods through personal interaction.