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Answer» Merits: - Central location: The super markets are generally located in the heart of the city. As a result, these are easily accessible to large number of people staying in the surrounding localities.
- Wide selection: Super markets keep a wide variety of goods of different designs, colour, etc. which enables the buyers to make better selection.
- No bad debts: As generally the sales are made on cash basis, there are no bad debts in super markets.
- Benefits of being large scale: A super market is a large scale retailing store. It enjoys all the benefits of large scale buying and selling because of which its operating costs are lower.
- One roof, low cost: Super markets offer a wide variety of products at low cost, under one roof. These outlets are, therefore, not only convenient but also economical to the buyers for making their purchases.
Limitations: - No credit: Super markets sell their products on cash basis only. No credit facilities are made available to the buyers. This restricts the purchasing power of buyers from such markets.
- No personal attention: Super markets work on the principle of self-service. The customers. therefore, don’t get any personal attention. As a result, such commodities that require personal attention by sales people cannot be handled effectively in super markets.
- Mishandling of goods: Some customers handle the goods kept in the shelf carelessly. This may raise costs in super markets.
- high overhead expenses: Super market incurs high overhead expenses. As a result these have not been able to create low price appeal among the customers.
- Huge capital requirement: Establishing and running a super market requires huge investment. The turnover of a store should be high so that the overheads are kept under reasonable level. This can be possible in bigger towns but not in small towns.
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