WHOLESALE& RETAIL
(selling in large quantities & selling to the public in shops)
SHOPPING CENTRE
The Shopping Cart / Trolley
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,
machinery)
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 risk-bearing
Retailer has costs:
• 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 skips 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, Emezeta, 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 different departments,
each selling a different type of goods, in city centres, can 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 into slots 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
selling different kinds of
goods, boutiques
12. Mail order
selling through the
post/Internet (catalogues,
brochures)
Recent trends in retailing –
the growth of large retailers
• 1. economies of scale in retailing – bulk buying, advertising,
modern purpose-built equipment, centralised buying
• 2. lower labour costs – self-service
• 3. plenty of parking space - increased car ownership
• 4. cut out the middleman / buy direct from the producer
• 5. growth of “shopping without shops”
Study the following picture and write down what makes the:
1. FACTORY PRICE
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2. IMPORTER PRICE
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3. RETAIL PRICE
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Translate the following words:
raw material cost _________________________________________
packaging/freight _________________________________________
direct labor ______________________________________________
royalty __________________________________________________
duty ____________________________________________________
markdown _______________________________________________
licensor _________________________________________________
royalty fee _______________________________________________
What is the factory profit? ___________________________________
What is the importer/wholesaler profit? _________________________
What is the retailer profit? ___________________________________
A TRIP TO THE SUPERMARKET
Use the following words to fill in the gaps:
cash, impulse, bar codes, credit card, receipt, shopping cart, 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 ___________. 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 shopping
cart 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.
PACKAGING
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/biscuits
h) chocolates/matches
i) fish/beans
1.__, 2. __, 3. __ 4.__, 5. __, 6. __, 7. __, 8. __, 9. __,
1. f, 2. d, 3. g 4.c, 5. i, 6. h, 7. e, 8. b, 9. a,
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.
What is RFID?
2.
What are the benefits for the distribution channel?
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http://www.youtube.com/watch?v=yNPDgudPmXE&feature=related
1.
What are the drawbacks of RFID?
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