Commerce - 4CM1 PearsonEdexcel

Retail

Overview

Every product that leaves a factory eventually reaches a customer, and retailers are the final link in that chain. From a neighbourhood corner shop to a sprawling hypermarket, retail businesses shape how consumers discover, compare and purchase the goods they need.

In this lesson you will explore the functions retailers perform, the different types of retail outlet, the factors that influence where shops locate, and the modern techniques and technologies that are transforming the way people buy. You will also examine why small-scale retailers continue to thrive alongside retail giants, and how recent developments such as omnichannel retailing and mobile commerce are reshaping the industry.

Objectives

Understand functions of retailers, including buying, storing, selling, providing credit facilities, introducing new products, advertising and window displays, after sales service
Understand types of retailer: street markets, independent retailers, speciality shops, department stores, multiples, supermarkets, hypermarkets, ecommerce/etailers
Understand location factors for retail outlets: availability of labour, closeness to markets, transport links, availability of power, raw materials, competition, suppliers, communication, government tax breaks and subsidies, planning authorities
Understand techniques in retail: branding, own labels, logos, packaging, self-service, after-sales service, barcoding, EPOS, loss leaders, seasonal sales, special offers, loyalty cards and programmes
Understand developments in retailing: omnichannel retailing, self-scan checkouts, click and collect, mobile retailing (mcommerce)
Understand reasons for the survival of small-scale retailers
Understand changes in the retail trade and the impact on businesses and individuals

Lesson Note

Think about the last thing you bought. Whether you picked it up from a shelf, ordered it on your phone, or collected it from a locker, a retailer made that transaction possible. Retailing is the stage of commerce closest to the consumer, and understanding how it works reveals why some businesses flourish while others disappear from the high street.

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Lesson Evaluation

Congratulations on completing the lesson on Retail. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.

You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.

Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.

Which of the following is a function of a retailer? A) Extracting raw materials B) Breaking bulk C) Manufacturing goods D) Mining resources Answer: B
Which type of retailer operates many branches under the same brand name with centralised buying? A) Independent retailer B) Street market trader C) Multiple (chain store) D) Speciality shop Answer: C
What does EPOS stand for? A) Electronic Payment of Sales B) Electronic Point of Sale C) Efficient Processing of Stock D) Electronic Processing of Supplies Answer: B
A supermarket sells baked beans below cost price to attract shoppers. This technique is called: A) Penetration pricing B) A special offer C) A loss leader D) Price skimming Answer: C
Which development allows customers to order online and pick up goods from a physical location? A) M-commerce B) Omnichannel retailing C) Click and collect D) Self-scan checkout Answer: C