Discount stores, Voluntary Chains and Tied shops

Discount Stores

• a large-scale retail outlet found in and private sector
• locate in busy shopping areas and out of city centres
• sells household goods such as electrical appliances
• operates from cheap premises
• buys goods in bul at low prices
• sells goods at low prices
• sells goods on a cash and carry basis

Voluntary chain stores

• independent retailers may join together to form a voluntary group. e.g Spar
• group buys in bulk from manufacturers and enjoys large trade discounts
• group buys at low prices and sells at low prices
• group distributes goods among the group members
• group advertises on behalf of all members
• group members should comply with the group’s minimum standards
• members may get loans from the group for renovations and decorations
• the groups are common in the grocery trade
• members sell a wide range of goods

Tied shops

• they sell products or offer services of only one manufacturer
• usually use the name of the manufacturer e.g BP filling stations
• have same decorations.

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