Table of Contents
What is a Supermarket?
A supermarket is a large retailing shop where goods are displayed in such a way that buyers select products for themselves. Buyers collect their product off the shelves invariably in a trolley and get them billed by the counter clerk.
A supermarket is defined as follows:
A large retailing business unit, selling mainly food and groceries on the basis of the low marginal gain. It has a wide variety and varied assortment of goods. It lays emphasis on self service.
Features of a supermarket
A supermarket has the following characteristics:
1. It operates on self service basis.
2. Prices are comparatively lower.
3. Credits are not extended to customers.
4. It offers large varieties of goods.
5. The profit margin is lower.
6. Customer service is minimum.
7. Sales are not compelled.
8. Neat display of goods is quite attractive.
Advantages of Supermarkets
Supermarkets suffer from the following limitations:
1. Supermarkets are located in busy centres
2. Buyers get quality goods at lower prices
3. Profit margin is lower
4. Customers get a wide assortment of goods
5. Shopping is convenient
6. There is no risk of bad debts.
Disadvantages of Supermarkets
1. As supermarkets are located at important centres, rent for its premises is higher.
2. Operating costs are higher.
3. Supermarket service may not be suitable to villages and small towns.
4. Huge capital is needed.
5. There is scope for mismanagement.
6. Due to low pay, employees leave the job in search of better prospects. High employee turnover prevents the supermarkets from building personal relationship with customers.
7. All goods cannot be displayed. It is difficult to sell some goods in pieces.
8. People’s ignorance and lack of education act against the functioning of the supermarkets.