WHOLESALE & RETAIL
(selling in large quantities & selling to the public in shops)
TRADE = buying/selling/exchanging
goods or services between people or countries
COMMERCE =
trade + services to trade
(banking, finance, insurance, transport,
advertising, telecommunications, post)
TRADE
1. HOME – wholesale + retail
2. INTERNATIONAL – import + export
DISTRIBUTION CHANNEL
(passing products to end-users)
Intermediaries (middlemen):
1.
producer > wholesaler > retailer > consumer
(e.g. clothing and meat)
2. producer > wholesaler > consumer
(e.g. carpets and building material)
3. producer > retailer > consumer
(e.g. bread and furniture)
4. producer > consumer
(e.g. vegetables and fish, mail order))
WHOLESALE
Wholesalers buy IN BULK
(large quantities)
Services provided by wholesalers:
1. repack goods in small amounts
2. provide storage for the goods
3. display a large variety of goods
4. arrange transport of goods to
retailers
5. give credit to retailers
6. inform manufacturers about demand
7. inform retailers of new trends in
products
Leaving out the wholesaler is the riskbearing:
Costs of storage
Cost of transport
Employing office staff
The price of goods must be cheaper
CASH-AND-CARRY
WHOLESALERS
Important to small retailers (pre-pack
food products and household items)
Goods are packed in bulk
The retailer uses a large trolley or
skip on wheels to move chosen goods
to the checkout
The till works out the VAT due on the
goods, lists each item by name
WHOLESALE MARKETS
Open early in the morning
(Zelena tržnica)
Sell items which perish quickly
(fruit and vegetables, meat and fish)
RETAIL TRADE
provision of goods and services to the customer
 retailers buy goods directly from the manufacturer /wholesaler
 Make their income from the margin
TYPES OF RETAILERS
(retail outlets – places where customers can purchase goods)
1. Shopping malls –
large groups of shops, restaurants, cinemas, etc.
built together under one roof and closed to traffic
(King Cross, Avenue Mall, Emmezeta, Mercator)
2. Hypermarkets very large shops outside a town, with a wide
range of goods, self-service, parking spaces
(Konzum, Metro, Getro)
3. Supermarkets –
large shops, smaller than hypermarkets
(Konzum, Diona, Kerum)
4. Department stores –
large shops with several floors, divided into several parts,
each selling a different type of goods, in city centres, have
bank counters, hairdressers, restaurants etc.(NaMa, Müller)
5. Multiple (chain stores) –
shops owned by the same company, the same design
(Benetton, Konzum, McDonalds)
6. Discount stores –
sell goods at prices that are much lower than normal,
durables, do-it-yourself products (industrial estates)
7. Vending machines –
putting coins for hot and cold drinks, food, toys
8. Market stalls – the oldest type, table
or small open-fronted shop in a
public place
9. Mobile shops – not fixed in one
place, can be moved easily and
quickly, for small and mid-week
purchases
10. Convenience store – small store
selling food or household goods,
open until late at night
11. Independent retailers – near large
areas of housing, to “pop around
the corner”
12. Mail order – selling through the
post/Internet (catalogues, brochures)
A TRIP TO THE SUPERMARKET.
Use the following words to fill in the gaps:
cash, impulse, bar codes, credit, receipt, trolley, bill, items, checkout, racks
When we go shopping to supermarkets we set off round the store
with a ________or just take a shopping basket. When we finish
buying things we must go to the ___________ where the assistant
runs her/his scanner over the __________ on our products. She
adds up our ______ and asks us how we would like to pay. We can
pay ______, by debit card or by ___________card. Sometimes we
take more staff than we want to and we have to cut our bill by
returning the items we do not need that much. Stores often put
_______of chocolates by the checkout to attract the impulse buyer.
We should learn to go shopping with a list of ______ we really
need, otherwise we buy on ________, which means things we
really do not need at that moment, and spend much more money
than we planned. After paying we should take the ____________
with us.
A TRIP TO THE SUPERMARKET.
When we go shopping to supermarkets we set off round the store
with a trolley or just take a shopping basket. When we finish buying
things we must go to the checkout where the assistant runs her/his
scanner over the bar codes on our products. She adds up our bill
and asks us how we would like to pay. We can pay cash, by debit
card or by credit card. Sometimes we take more staff than we want
to and we have to cut our bill by returning the items we do not need
that much. Stores often put racks of chocolates by the checkout to
attract the impulse buyer. We should learn to go shopping with a list
of items we really need, otherwise we buy on impulse, which means
things we really do not need at that moment, and spend much more
than we planned. After paying we should take the receipt with us.
Match a package with a
product:
1.
2.
3.
4.
5.
6.
7.
8.
9.
a carton of
a bag of
A packet of
A can of
A tin of
A box of
A jar of
A tub of
A bar of
a) soap/chocolate
b) margarine/butter
c) coke/beer/beans
d) crisps/peanuts
e) jam/marmalade
f) milk/cream
g) cigarettes/sugar
h) chocolates/matches
i) fish/beans
1.__, 2. __, 3. __ 4.__, 5. __, 6. __, 7. __, 8. __, 9. __,
http://www.youtube.com/watch?v=lZIpkoC9olY&feature=related
How to Become a Wholesale and Retail Buyer
1. How do wholesalers and retailers differ from other shoppers?
2. Why do wholesale and retail buyers purchase products and commodities?
3. What are their goals?
4. When do buyers do their job well?
5. When do buyers fail?
6. What is the most challenging part of the job?
7. How can they be successful?
8. What do they do before authorizing payment?
9. What are prerequisites for staying ahead of trends?
10. What does this career require from buyers?
http://www.youtube.com/watch?v=4Zj7txoDxbE&feature=related RFID
1.
2.
What is RFID?
What are the benefits for the distribution channel?
http://www.youtube.com/watch?v=yNPDgudPmXE&feature=related
1.
What are the drawbacks of RFID?
http://www.youtube.com/watch?v=gUcuqhduWao&feature=related
What novelties are shown in the Future Store?
Do we already have some of them introduced in certain shops?