(a) Describe any four features of a multiple shop. (b) Give any four reasons why small scale retailing is common in Nigeria.

Answer Details

(a) Four features of a multiple shop

1. Chain of similar shops: It is a group of many branch shops, owned by the same organisation, spread over different towns and streets, all selling the same range of goods.
2. Uniform appearance and price: The shops have a similar layout, design and shop front, and goods are sold at the same fixed prices in all branches.
3. Central control and buying: Buying is done centrally in bulk by the head office, which gives large discounts, while the branches concentrate on selling.
4. Specialisation in a line of goods: Each multiple shop organisation usually specialises in one type of product, for example shoes, chemists' goods or provisions.

Other features include cash sales (little or no credit) and standardised management policies from the head office.

(b) Four reasons why small scale retailing is common in Nigeria

1. Small capital requirement: Little money is needed to start, so many people with limited funds can go into it.
2. Low level of education and skill: It does not require special training or high education, so it is open to almost everyone.
3. Low and irregular incomes of consumers: Many customers buy in small quantities and on credit, which small retailers are able to provide.
4. High level of unemployment: Many people take to petty trading as a means of self-employment and survival.

Other reasons include the ease of entry and exit and the demand for goods in small, affordable units.