TOPIC 4: RETAIL OUTLETSsoe20.pomgrammar.ac.pg/PDF/GR7 EconBusS COMM TPALALA PPT… · 2. Street...

TOPIC 4: RETAIL OUTLETSSUB-TOPIC:RETAILER.

Prepared by TPalala © Copyright 2020 Port Moresby Grammar School Limited – All Rights Reserved

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LEARNING OUTCOMES

BY THE END OF THIS PRESENTATION, YOU SHOULD BE ABLE TO :Define the term retailerExplain what a retail outlet is.Give examples of retail outlets.Define and discuss financial institutions. Explain how distribution of goods takes place.


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Timeframe and Instructions• This course will take you 4 weeks to complete and is accompanied by a

worksheet.

• If you set an average of 2 hours per day, you should be able to completethe unit comfortably by the end of the assigned week.

• Ask your parents or guardians to help you complete it. The worksheetshould be completed within the given period.

• You will have to read the notes before attempting the activities.

• The activity is done to check your understanding of the topic.

• Please ask your parents to assist you in dropping off your answered activityat the front office. Alternatively a scanned copy can be emailed [email protected]


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Who is a retailer? A retailer is someone who sells goods to the

consumers.What is a retail outlet? It is any place where goods are sold directly to

the consumers.


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The word retail, retailer and retailing are to do with selling goods directly to the consumers

Examples of retailers are, Market sellers Street sellers Trade stores Speciality stores Supermarkets Department store Chain stores


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1.Market sellersThey may be the producers of the goods they sell. They mainly sell fruits and vegetables.

4. Speciality storesThese are stores which are specialised in selling only a certain type of good. They are mainly found in towns/ cities where there are many customers.

5. SupermarketsAre large stores which mainly operate in towns .They sell many different types of goods(mainly food and household goods).These types of goods are called groceries. They have self service and checkout cashiers.

Self-service: people walk along the shelves and pick out the goods they want by themselves.

2. Street sellersThey may also be the producers of the goods they sell, but not necessarily.

e.g. Sepik carving sellers.

3. Trade storesThey sell goods produced by other people and these goods are bought from other businesses. They sell many different kinds of goods.


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7. Chain storesThese are either supermarkets or department stores. It is a store which is part of a group of stores. They are retailers, they sell directly to the customers.

6. Department stores It is a large store which ismainly found in towns andhas many different partsdivided into departments.Each department specialisesin selling a certain type ofgood. Examples of shops herein Port Moresby are VisionCity, RH Hyper Mart and BrianBell. They have stationery,electrical, clothing and otherdepartments in one. Adifferent worker will be incharge of each department.


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How do Retailers help the Producers of Goods?They help the producers by selling their goods.

The value of the retailerMost retailers do not produce the goods they sell, they just provide a service. Retailers set up their stores near their customers, meaning the customers will not have to travel far to get goods.

Retailers provide services to consumers because they; have their stores near customers

sell the goods customers want

sell goods that come from far away

provide a variety of goods

sell single (loose) items

allow goods sold on credit

Give advice on how to use certain goods.


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THE WHOLESALERS

Wholesalers come between the producer and the retailer. They are sometimes called a middleman.They buy in bulk from the producers then break up this bulk and sell in cartons to many different retailers. They are types of businesses which specialise in buying large quantities of goods from producers locally and overseas. They put all these hundreds of cartons into a building for protection, this building is called a warehouse.

Why is a Wholesaler regarded as a Specialist?

A wholesaler is regarded as a specialist because they;

• know how to contact different producers locally and overseas

• buy goods at a lower price and also know how to arrange transportation of their goods


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How does a wholesaler help Retailer?

Wholesalers help retailers by;

• having different goods for sale

• keeping a large stock of goods in their bulk store

• sometimes delivering the goods

• sometimes selling goods on credit

• sometimes giving discounts

• helping advertise or making products well known

How do wholesalers help producers?

Wholesalers help producers by;

• buying in bulk from them

• not having to waste time talking to small retail businesses

• not having to store all the goods that producers have produced.


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STEPS IN RETAILING DISTRIBUTION

• Goods do not go directly between the producer and the consumer. Sometimes the goods are bought and sold many times before they reach the consumer. Here are some of the ways in which the goods can get from the producer to the consumer.


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Distribution

• is how goods get from the producer to the consumer.

• Producers are concerned with how their goods will get to theconsumers. Producers are concerned about how their goods will bedistributed. They depend on the importing businesses, thewholesalers and of course the retailers. In every step of retailing inthe distribution of goods, the prices of goods increases because allbusinesses want to make profit.


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Trade stores and Profit.

• Trade stores are the main type of businesses that operate in the rural parts/areas around PNG. Most trade stores try to make profit here in Papua New Guinea but some don’t because of the culture and the way we live.

How to run a successful trade store

• A successful trade store is the one that makes a profit.

• There are certain things that cause a trade store to be profitable or unprofitable.

Competition

Location

Management skills


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Competition

• A competition is when a group of people try to beat each other atsome activity. A person or team tries to be the winner.

• In commerce it has the same meaning. If there is only one trade storein an area, all the consumers will go to that store- there is nocompetition. However, if there are many trade stores, consumers willchoose which trade store they want to go to. It will result in otherstores shutting down because they are not making profit.


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Location

• To be successful in a business, a trade store or a business has to belocated in a central area or location where there are lots ofcustomers. Choosing a wrong location will result in the businessfailing.

Management skills• A trade store owner must have management skills to run his/her

business or pay someone else to manage the business.

• A manager is someone who runs/manages the business.


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Some of the things a good manager should do to make his/her business successful.

• Buying stock at a lowest price

• Buying the right kind of stock

• Pleasing customers

• Careful use of credit

• Selling at the right price

• Proper Record keeping


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• Careful use of credit

To sell goods on credit means thatcustomers take the goods away withoutpaying for them but promise to paylater. But if the customers do not payfor their credits, this could lead to avery big expense for the business.

If the business needs to sell goods oncredit, they will need to do thefollowing;

a) Choose customers that are honest

b) Keep a proper written record of all customers who got goods on credit.

Buying stock at a lowest price

Managers/ trade store owners must choosecarefully from the wholesalers when buyingstock.

Buying the right kind of stock

Managers/ trade store owners must buy theright type of goods the customers want.

Pleasing customers

To encourage the customers to come backagain and again a good businessman will try toplease his customers with a number of ways.

a) Opening the store at a regular times

b) Keeping the store clean

c) Arranging the stock in an attractive way.

d) Greeting the customers in a nice way.


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Deciding on the right selling price for a good isvery important. It decides on how much profit abusiness makes.All other expenses have to be paid out of thisdifference. What is then left over is the profit.

Selling at the right price

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Student Activities

1. Explain what a retailer is in your own words.

2. List five examples of a retailer and explain each.

3. What types of services do the retailers provide to the customers?

4. Briefly explain how retailers help the producers of goods.

5. Why are wholesalers regarded as the middleman in the distribution process?

6. How do wholesalers help the retailers?

7. Give examples and name businesses that are involved in the distribution

of goods in Port Moresby/Papua New Guinea.

8. What are some things a business must consider to be successful?


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You are to complete the

activities in your commerce

exercise book

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TOPIC 4: RETAIL OUTLETSsoe20.pomgrammar.ac.pg/PDF/GR7 EconBusS COMM TPALALA PPT… · 2. Street...

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