Spar Joina City. Image credit

Spar Joina City. Image credit

ZIMSEC O Level Commerce Notes: Retail Trade: Discount stores and Voluntary Chains

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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