3. SUPERMARKETS:

Features:

• These are self-service shops with floor space of more than 186 square metres.
• They sell mostly foodstuff and household goods.
• Goods are pre-packed, well displayed and self-service is encouraged.
• Amenities such as car parking, toilets, restaurants, etc are provided.
• Supermarkets sometimes brand their own goods.
• Prices are very competitive because of the high rate of sales.

Advantages:

• The supermarkets buy goods from the manufacturers in bulk and are able to get discounts. Hence they can sell goods to consumers at competitive prices.
• Self-service reduces the wage costs of the supermarket.
• Customers benefit from quick service as the goods are pre-packed and well displayed.
• Supermarkets buy from the manufacturers who brand the goods using the supermarkets’ own labels.
• Customers are attracted because of the amenities and the large variety of goods that are provided by the supermarket.

Disadvantages:

• Self-service encourages pilfering and shop lifting.
• Customers do not enjoy any personal service.

HYPERMARKETS:

Examples: Asda, Tesco, Sainsbury.

Features:

• Hypermarkets usually have more than 5000 square meters of selling space.
• Hypermarkets offer a great variety of foodstuff and a wide range of other goods.
• They buy directly from manufacturers and sell at competitive prices.
• Hypermarkets are usually found outside towns and cities.
• They provide large car parking space.
• Goods are pre-packed, well displayed and self-service is encouraged.
• To encourage non-car owners, they provide free bus service to and from the hypermarkets.
• Amenities such as lounges, swimming pools, toilets, restaurants, child care centers, etc, are provided to make shopping comfortable for customers.

Advantages:

• The hypermarkets buy goods from the manufacturers in bulk and are able to get discounts. Hence they can sell goods to consumers at competitive prices.
• Self-service reduces the wage costs of the hypermarket.
• Customers benefit from quick service as the goods are pre-packed and well displayed.
• Amenities such as lounges, swimming pools, toilets, restaurants, child care centers, etc, are provided to make shopping comfortable for customers.
• Customers are attracted because of the amenities and the large variety of goods that are provided by the hypermarket.
• They provide free bus service to and from the hypermarkets.
• They provide large car parking space for customers.
• Shopping can be done under one roof.