Advantages and disadvantages of small scale retailers

Advantages of small scale retailers to Consumers

•  open for long hours or even during holidays
• sell a variety of goods
• cater for individual tastes
• sell in very small units
• may be specialists, selling one line goods
• offer

-personal services

-delivery services

-after sales services

-informal credit to well known customers

Advantages to the Retailer

• the retailer requires little capital to establish the business
• the retailer benefits by having low overhead expenses
• there are less legal formalities required to be observed
• flexible to changes in market tastes

Advantages to Consumers

• goods are usually sold at high prices
• Slow in serving customers as they have to stand in queues
• Goods sold may not be fresh
• Choice of goods is limited
• normally do not offer guarantees.

Disadvantages to consumers

• Small scale traders usually sell goods at higher prices.
• They can be slow at serving customers.
• The goods they sell may not be fresh.
• There is a limited choice of goods.
• Do not normally offer guarantees.

Disadvantages to the retailer.

• See the disadvantages of small businesses e.g. sole traders.

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