Disadvantages of Large Scale Retailers

To Business
1. High capital requirement.
2. High fixed cost (large expenses).
3. Greater risks attached (stock damage).
4. Management problems.
5. Business has to give incentives to customers which can be a burden on the business.
6. Business has to allocate certain area for non-productive activity (play area,
parking lot).
7. Normally self service is offered and there are chances of shop lifting.
8. Mail order business can expect refund claims which is loss to the business.
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To Customers
1. Not conveniently located.
2. All these are located in main commercial area their can be traffic,
congestion and parking problems.
3. Customers get standardized items.
4. Impersonalized services.
5. Self service sometimes leads to impulse buying and irrational buying.
6. Do not provide home delivery.
7. Don not provide credit facility.