ZIMSEC O Level Commerce Notes: Retail Trade: 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
-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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