Business Studies 6 Marks Question

(a) Departmental store.
(b) Advantages of Departmental Stores:
(i) Attracts large number of customers.
(ii) Economy of large scale operation.
Limitations of Departmental Stores:
(i) Lacks personal attention.
(ii) High operating cost.

(a) Invoice
(b) Debit note
(c) Credit note

(a) - North Delhi Merchandise Stores: COD (Cash on Delivery).
- South Delhi Merchandise Stores: CIF (Cost, Insurance and Freight).
(b) E\&OE (Errors and Omissions Excepted).

(a) Mail order business.
(b) Advantages:
(i) Limited capital requirements.
(ii) Elimination of middlemen.
(iii) No bad debts.
(c) Limitations:
(i) Lack of personal contact.
(ii) High promotion cost.

(a) The Goods and Services Tax (GST) the special reform approved by The President of India in a the dignified function much like the one which marked India's Independence.
(b) The main aim of GST is to make life easier for manufacturers, producers, investors and consumers. GST is a destination-based single tax on the supply of goods and services from the manufacturer to the consumer, and has replaced multiple indirect taxes levied by the Central and the State governments, thereby, converting the country into a unified market.
(c) The key features of GST are:
(i) GST is applicable on the 'supply' of goods or services as against the present concept of tax on the manufacture or sale of goods or on the provision of services.
(ii) It is based on the principle of destination-based consumption tax against the present principle of origin-based taxation.
(iii) Import of goods and services is treated as inter-state supplies and would be subject to IGST in addition to the applicable customs duties.
(iv) CGST, SGST and IGST are levied at rates mutually agreed upon by the Centre and the States under the aegis of the GST Council.

(a) Sarthak is engaged in wholesale trade.
(b) The parties between which Sarthak is acting as Linking pin are manufacturers and retailers.
(c) The services rendered by Sarthak to manufacturers are:
(i) Facilitating Large Scale Production: Wholesalers collect small orders from a number of retailers and pass on the pool of such orders to the manufacturers and make purchases in bulk quantities. This enables the producers to undertake production on a large scale and take advantage of the economies of scale,
(ii) Bearing Risk: The wholesale is deal in goods in their own name, take delivery of the goods and keep the goods purchased in large lots in their warehouses. In the process, they bear variety of risks such as the risk off all in prices, theft, spoilage, fire, etc. So, they relieve the manufacturers from bearing these risks.
(iii) Financial Assistance: The wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payment for the goods purchased by them. To that extent, the manufacturers need not block their capital in the stocks.
(iv) Expert Advice: As the wholesalers are in direct contact with the retailers, they are in a position to advice the manufacturers about various aspects including customer's tastes and preferences, market conditions, competitive activities and the features preferred by the buyers.

(a) Shoppers Stop is a departmental store.
Lines: "It offers a wide variety of products, classified into well-defined units, each one is confined to one kind of product to satisfy every customer's need under one roof."
(b) The key difference between departmental stores and multiple chain stores are:
(i) Location: A departmental store is located at a central place, where a large number of customers can be attracted to it. As against this, the multiple stores are located at a number of places for approaching a large number of customers.
(ii) Range of Products: Departmental stores aim at satisfying all the needs of customers under one roof. As such, they have to carry a variety of products of different types. As against this, the multiple stores generally aim to satisfy the requirements of customers relating to a specified range of their products only.
(iii) Services Offered: The departmental stores lay great emphasis on providing maximum service to their customers. Some of the services, provided by them include alteration of garments, restaurant and so on. As against this, the multiple shops provide very limited service confined to guarantees and repairs if the sold out goods turn out to be defective.
(iv) Pricing: The multiple shop chains sell goods at fixed prices and maintain uniform pricing policies for all the shops. As against this, the departmental stores do not have uniform pricing policy for all the departments.
(v) Credit Facilities: All sales in the multiple shops are made strictly on cash basis. As against this, the departmental stores may provide credit facilities to some of their regular customers.

(a) The type of organisation highlighted by Radhika is The Chamber of Commerce and Industry.
(b) The important interventions made by The Chamber of Commerce and Industry in the various areas are:
(i) Transportation or Interstate Movement of Goods: The Chamber of Commerce and Industry help in many activities concerning interstate movement of goods which includes registration of vehicles, surface transport policies, construction of highways and roads.
(ii) Octroi and other Local Levies: Octroi and local taxes are the important sources of revenue of the local government. These are collected on the goods and from people entering the state or the municipal limits the government and Chambers of Commerce should ensure that their imposition is not at the cost of smooth transportation and local trade.
(iii) Excise Duty: Central excise is the chief source of the government revenue levied across states by the central government. The excise policy plays an important role in pricing mechanism and hence the associations need to interact with the government to ensure streamlining of excise duties.
(iv) Promoting Sound Infrastructure: A sound infrastructure like road, port, electricity, railways etc., plays a catalytic role in promoting trade. The Chambers of Commerce and Industry in collaboration with the government needs to take up heavy investment projects.
(v) Weights and Measures and Prevention of Duplication Brands: Laws relating to Weights and Measures and protection of brands are necessary to protect the interest of the consumers as well as the traders. They need to be enforced strictly. The Chambers of Commerce and Industry interact with the government to formulate such laws and take action against those who violate rules and regulations.

(a) Itinerant retailer (Street traders).
(b) Itinerant retailer (Peddlers).
(c) Fixed shop small retailer (Specialty stores).
(d) Itinerant retailer (Market Traders).
(e) Fixed shop large retailer (Departmental stores).
(f) Fixed shop large retailer (Multiple chain shops).

(a) The fixed shop large retailing business in which Cosmos traders is engaged in Mail order business.
Lines: "A different type of business of selling standardized cosmetics under the name Cosmos traders by sending catalogues to the local residents of Lucknow and supplying goods to them through courier."
(b) The advantages of mail order business are:
(i) Limited Capital Requirement: Mail order business does not require heavy expenditure on building and other infrastructural facilities. Therefore, it can be started with relatively low amount of capital.
(ii) Elimination of Middle Men: The biggest advantage of mail-order business is that unnecessary middlemen between the buyers and sellers are eliminated. This may result in lot of savings both to the buyers as well as to the sellers.
(iii) Wide Reach: Under this business the goods can be sent to all the places having postal services. This opens wide scope for business as a large number of people throughout the country can be served through mail.
(c) The limitations of mail order business are:
(i) No Credit Facilities: The mail order houses do not provide credit facilities to the buyers. Thus, customers with limited means may not be interested in this type of trading.
(ii) Delayed Delivery: There is no immediate delivery of goods to the customers, as receipt and execution of order through mail takes its own time.

I do not agree with Sophia, newly appointed sales manager suggestion of the elimination of wholesalers.
The wholesaler offers the following services to manufacturer which will not be available if they are eliminated:
(i) Facilitating Large Scale Production: Wholesalers collect small orders from a number of retailers and pass on the pool of such orders to the manufacturers and make purchases in bulk quantities. This enables the producers to undertake production on a large scale and take advantage of the economies of scale.
(ii) Bearing Risk: The wholesales deal in goods in their own name, take delivery of the goods and keep the goods in their warehouses. In the process, they bear variety of risks such as the risk of fall in prices, theft, spoilage, fire, etc. To that extent, they relieve the manufacturers from bearing these risks.
(iii) Financial Assistance: The wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payment for the goods purchased by them. So, the manufacturers need not block their capital in the stocks.
(iv) Expert Advice: As the wholesalers are in direct contact with the retailers, they are in a position to advice the manufacturers about various aspects including customer's tastes and preferences, market conditions, competitive activities and the features preferred by the buyers.
(v) Facilitate Production Continuity: The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced and storing them till the time these are demanded by retailers or consumers in the market.
(vi) Storage: Wholesalers take delivery of goods when these are produced in factory and keep them in their warehouses. This reduces the burden of manufacturers of providing for storage facilities for the finished products. They thus provide time utility.

The differences between wholesalers and retailers are:

S. No	Basis	Wholesalers	Retailers
1.	Purchases and Sales	They purchase goods from manufacturers and sell them to retailers.	They purchase goods from wholesalers and sell them to ultimate consumers.
2.	Quantity of Goods	They buy and sell goods in large quantities.	They buy and sell goods in small quantities
3.	Specialisation	They specialise, generally, in purchase and sale of one commodity only.	They do not specialise in only one good, but provide all types of goods.
4.	Capital	They require a large amount of capital.	They require comparatively less capital.
5.	Price	Wholesale price is less than retail price.	Retail price is more than wholesale price.

Meaning, Features and Advantages of Consumer Cooperative store.
The societies started to help lower and middle class people and protect these sections from the clutches of profit-hungry businessman are called Consumers Cooperative Stores. A consumer's co-operative society is a combination of persons whose aim is to economise by buying in common and retain their profits by selling in common. According to M.C. Sukla, "Consumer Cooperative Store is an economic enterprise set by the consumers for the distribution of fundamental consumption goods, primarily among the shareholders to the subscriber consumers who are called members of such organization and who have an equal voice in the control of the organization.
Features:
Following are some of the essential features of a consumer's cooperative store:

1. There is no restriction on membership of a consumer co-operative store as any adult person can become a member of a co-operative.
2. The members of the consumer co-operative store distribute capital in the form of share. A member can purchase shares of a value of 1000 only. Beyond this, shares are not issued to members.
3. The surplus of a store is distributed among the members in the form of dividend.

The dividend is paid in proportion to purchases made by the members.

4. It adopts the principles of 'one man, one vote'. A man is not allowed vote by proxy system.
5. The trading of co-operative stores is made on the basis of cash.
6. A sale can be made to non-members on the basis of market rate.
7. It makes bulk purchases directly from the producers and sell these goods to its members on retail basis.

Advantages:
Consumer's Cooperative Store has the following advantages:

1. It facilitates its members in getting pure and unadulterated goods at a competitive price.
2. It develops a state of moral booster to the poor people who develop greater confidence among themselves.
3. As the societies are purchasing goods in bulk quantities from the producers, these are in a better position to supply these goods at a competitive price to its members.
4. It improves the purchasing power of the members since dividend is paid on the basis of purchases made.
5. It encourages people to save.

The retail trade is conducted now on a large scale. The mass production of goods and the concentration of population in urban centers has necessitated the establishment of large-scale retail trading houses. There are many advantages of retailing on a large scale. However, in spite of the economies of large scale retailing, the small-scale units could not be eliminated because of the various special advantages possessed by them.
Some of the more prominent large-scale retail organizations are as follows:

1. Departmental Stores: A departmental store is a large-scale retail organisation having a number of departments under one roof. Each department specialises in one particular kind of trade. All these departments are centrally organized and are under one united management and control. A departmental store is an organization of several retail stores carried on in one building and under united controlled management. The basic objective of a departmental store is to provide a large variety or merchandise from a pin to an aeroplane at one place.
2. Multiple Shops or Chain Stores: A multiple shop system is a network of branch shops, situated at different localities in the city or in different parts of the country, under a centralised management and dealing in similar lines of goods. Such multiple shops are very common and popular in the west and are known as Chain Stores. According to J.L. Fri, "Chain Stores is a group of stores handling similar lines of merchandise with single ownership and centralised location." The Federal Trade Commission defined a chain store as "an organization owing a controlling interest in two or more establishments which sell substantially similar merchandise at retail prices."
3. Mail Order Sale Houses: A Mail Order Sale is a retail business where orders are placed by post or mail and goods are received either by registered parcel or V.P.P. Value Payable Post. Under such a type of selling, the seller advertises his products in the leading dailies and magazines of the area and the intending buyers respond to such advertisements by requesting for catalogues and price lists from the seller. The buyers do not inspect the goods before purchasing but place orders on the basis of the advertisements which they see in the newspapers and magazines. After orders are received from customers, the goods are dispatched by V.P.P. or registered mail. The postman of the buyer's locality delivers the goods to him and takes the payment for the same. Thus the post office plays a vital role in such type of sale, and it is because of this type of sale is also sometimes referred to as "Shopping by Post".
4. Super Markets: The super market is a large-scale retail institution specializing in necessaries and convenience goods. They have huge premises and generally deal in food and non-food articles. In the words of M. M. Zimmerman, "A super market is a departmentalised retail establishment having four basic departments viz, selfservice grocery, meat produce, dairy products plus other household departments, doing a maximum business. It may be entirely owner operated or have some of the departments leased out on a concession basis." Super markets came into existence in the USA during the Great Depression of the thirties. However, the original super markets were established by independent merchants who dealt mainly in food products.
5. Consumer Co-Operative Stores: A consumer co-operative is a retail business which is owned by the consumers themselves. Their basic objective is to eliminate middlemen. The consumers join together and manage the business and the profit thus earned is retained among themselves in the proportion of their contribution.

The society purchases in bulk and avails the discounts and sells in small lots to the members. Some of the co-operative stores are run on a large-scale basis while others are small in size and nature.

6. Vending Machines: Such selling machines are extensively used in the west. The vending machine is operated by inserting a coin and the buyer can get the articles. Vending machines are usually acquired to sell articles like cigarettes, soft drinks, chocolates, candles etc. Railway platform and bus tickets are also sold by this method. The articles sold by a vending machine are pre-packed and labeled and are usually of reputed brands. The goods should be uniform in size and shape and less bulky in weight. The installation of such machines is an expensive affair and it needs regular maintenance also. Such machines are quite attractive in appearance and installed at busy shopping centers.

The differences between departmental stores and multiple shops are summarized below:

1. Location: A departmental store is centrally located and attracts customers towards it. On the other hand, multiple shops are situated in different localities and attempt to reach near the customers.
2. Variety of goods: A departmental store deals in a wide variety of products and serves as a universal supplier. On the other hand, a multiple shop specialises in one line of goods.
3. Type of customers: A departmental store caters mainly to rich people, whereas multiple shops cater to the general public.
4. Nature of dealings: A departmental store sells goods both on cash and credit basis. But multiple shops sell goods on cash and carry basis.
5. Services: A departmental store offers banking, post office, restaurant and other facilities to customers. Multiple shops do not offer such services.
6. Pricing: Different departments of a departmental store may sell goods at different prices. But all the multiple shops sell goods at the same prices.
7. Decoration and display: Every department of a departmental store may have different decoration and display. But all the multiple shops of an owner have uniform shop decoration and window display. A departmental store advertises at local level, whereas multiple shops advertise at national level.
8. Object: A departmental store aims at providing everything at one place. Multiple shop system, on the other hand, is an attempt to eliminate middlemen and establish direct contact between the manufacturer and consumers.
9. Flexibility: In a departmental store quick adjustment can be made according to local changes. One line of goods can be substituted by others. Multiple shop system lacks such flexibility.
10. Control: In a departmental store, heads of departments have considerable discretion in the management of operations. Branch managers in a multiple shop system have to follow the policies and procedures laid down by the head office.
11. Ownership: A departmental store is generally owned and established by a retail trader. On the other hand, multiple shop system usually operates under the ownership and management of a manufacturer or a wholesaler.
12. Risk: Risk involved in a departmental store is relatively greater because success depends on the prosperity of a single location. In multiple shops system risks are spread over different shops located in different areas.

important features of a departmental store are as follows:

1. A modern departmental store may provide all facilities such as restaurant, travel and information bureau, telephone booth, restrooms, etc. As such they try to provide maximum service to higher class of customers for whom price is of secondary importance.
2. These stores are generally located at a central place in the heart of a city, which caters to a large number of customers.
3. As the size of these stores is very large, they are generally formed as a joint stock company managed by a board of directors. There is a managing director assisted by a general manager and several department managers.
4. A departmental store combines both the functions of retailing as well as warehousing. They purchase directly from manufacturers and operate separate warehouses. That way they help in eliminating undesirable middlemen between the producers and the customers.
5. They have centralised purchasing arrangements. All the purchases in a department store are made centrally by the purchase department of the store, whereas sales are decentralised in different departments.

Chain stores or multiple shops are networks of retail shops that are owned and operated by manufacturers or intermediaries. Under this type of arrangement, a number of shops with similar appearance are established in localities, spread over different parts of the country in contrast to departmental stores which are established at a central place in the city. These different types of shops normally deal in standardised and branded consumer products, which have rapid sales turnover. These shops are run by the same organisation and have identical merchandising strategies. with identical products and displays.

Itinerant retailers are traders who do not have a fixed place of business to operate from. They keep on moving with their wares from street to street or place to place, in search of customers.

1. Low price of goods: Itinerant traders generally deal in low-priced goods that are of daily use to customers, such as toiletries, vegetables, fruits, etc. These traders do not have to spend on storage and advertising, and they keep their inventories short and limited. Hence, the prices of their goods are lower than the prices of goods sold by large-scale retailers.
2. Personal attention to customers: Itinerant traders deal directly with consumers and are, therefore, able to give more attention to them. As they supply goods to customers at their doorstep, they provide greater customer-care services by eliciting proper feedback and passing on the information to manufacturers.
3. Easy availability at short notice: Itinerant traders move from place to place and provide goods at the customer’s doorstep. On the other hand, large-scale retailers have shops in central locations away from residential areas, and it is often difficult for customers to buy goods at the time they require them. Therefore, they depend on itinerant traders.
4. Lower possibility of losses: Large-scale retailing involves a higher probability of incurring losses, because the retailers concerned deal in high-priced goods. Thus, in case the tastes and preferences of customers change, large-scale retailers are forced to sell the goods that have fallen out of favour. These goods are often sold at low prices in clearance sales, causing huge losses to the retailers. On the other hand, as itinerant traders deal in consumer goods that are low priced and of daily use, the probability of their incurring losses is minimised.

Super market is nothing but a retail organization providing food and household articles to consumer under one roof without any kind of sales pressure from salesmen and sale assistants. The United States of America (USA) is said to be the homeland of super markets.
In India, Apna Bazaar, Sahakari Bhandar, etc., are some good examples of super markets or super bazaars. According to Dictionary of Business and Finance, Supermarket is defined as, "Large store selling a wide variety of consumer goods, particularly food and small articles of household requirements."
Features of Super market
The characteristics or features of the super market are as follows:

1. Centrally located in big premises: Super markets are normally opened in a central locality where ample space is available. It is housed in big premises. Without such premises proper display of different goods cannot be arranged.
2. No sales pressure: One important feature of a super market is self-service. There is a complete absence of salesmen and sales assistants. Thus, there is no sales pressure of any kind. Customers can make a selection according to their needs and desires.
3. Maintains low prices: The prices of goods in the super markets are reasonable or low. This is because they (companies running super markets) buy in bulk and enjoy all the advantages of bulk buying. Similarly, their salary bill is low due to the absence of salesmen and sales assistants.
4. Sell goods on a cash basis: Super markets sell goods on 'Cash and carry basis.' In such a kind of a business, credit facilities are usually not offered. This reduces bad debts.
5. Deals in necessaries of life: Super market deals in commodities, which are required regularly. Thus, they deal in tinned products of well-known brands, groceries and provision, readymade garments, fruits, etc. The turn over is quick as the demand for the necessaries of life is a continuous one.
6. Established by companies: Super markets are retailing shops, which are large in size. They do business on a large scale and require huge financial resources. Hence, they are normally established by Joint-stock companies.
7. Deals in pre-packed goods: Super market normally deals in pre-packed goods or products. It uses latest and up-to-date packing material to protect quality and quantity. On all packages, prices, weights, particulars of goods, grade and quality are specified.
8. Needs huge capital to operate: Super market is a large retail trading organization. It requires a substantial amount of capital for big premises, huge warehousing, ample parking and stocking of a wide variety of commodities.
9. Self-service store: Customers are given attractive trolleys or hand baskets or bags for keeping goods which they want to buy. Goods are systematically arranged and beautifully displayed. Customers select these goods and keep them in the trolley. Finally, they have to come to the billing section for making payment and then delivery is given at the delivery counter.

Advantages of Super Market:

1. Saving in labour cost due to self-service system.
2. Super market has large turn over.
3. Reasonable or low prices of goods.
4. Low cost of operation.
5. Freedom of selection.
6. Shopping is very easy and quick.
7. Due to adequate parking space, shopping becomes easy and pleasing activity rather than boredom.
8. High degree of efficiency due to elimination of service.
9. High margin of profit to organisers.
10. Advantages of large scale operations.

Disadvantages of Super Market:
The disadvantages of a super market or Super Bazaar are as follows:

1. Super market requires huge financial resources.
2. It is normally situated at a long distance from the residential localities.
3. There is lack of personal attention.
4. Super market does not provide various services such as free home delivery, personal guidance, credit facility and after sale service.
5. It faces the problem of co-ordinating activities of various sections of the market.
6. It requires large and extensive premises.
7. Goods which require explanation by salesmen cannot be sold in such markets.

The major services offered by wholesalers to the producers of goods and services are given as below.

1. Facilitating Large Scale Production: Wholesalers collect small orders from number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities.
2. Bearing Risk: The wholesalers deal in goods in their own name, take delivery of the goods and keep them in their warehouses bearing risks of fall In prices, theft, spoilage, fire, etc.
3. Financial Assistance: The wholesalers provide financial assistance to the manufacturers In the sense that they generally make cash payment for the goods purchased by them.
4. Expert Advice: Wholesalers can advice the manufacturers about various aspects like customer’S tastes and preferences, market conditions, competitive activities and the features preferred by the buyers as they are in touch with retailers.
5. Help in the Marketing Function: The wholesalers take care of the distribution of goods to a number of retailers who, in turn, sell to large number of customers spread over a large geographical area.
6. Facilitate Continuity: The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced.
7. Storage: Wholesalers take delivery of goods when these are produced in factory and keep them in their godowns, warehouses.

A consumer cooperative store is an organisation owned, managed and controlled by consumers themselves. The objective of such stores is to reduce the number of middlemen who increase the cost of produce, and thereby provide service to the members. The cooperative stores generally buy in large quantity, directly from manufacturers or wholesalers and sell them to the consumers at reasonable prices. Since the middleman are eliminated or reduced, the members get products of good quality at cheaper rates. The profits earned by consumer cooperative stores during a year are utilised for declaring bonus to members and for strengthening the general reserves and general welfare funds or similar funds for social and educational benefits of the members.
advantages

1. Ease information: It is easy to form a consumer cooperative society. Any ten people can come together to form a voluntary association and get themselves registered with the Registrar of Cooperative Societies by completing certain formalities.
2. Limited liability: The liability of the members in a cooperative store is limited to the extent of the capital contributed by them. Over and above that amount, they are not liable personally to pay for the debts of society, in case the liabilities are greater than its assets.
3. Democratic management: Cooperative societies are democratically managed through management committees which are elected by the members. Each member has one vote, irrespective of the number of shares held by him/ her.
4. Lower prices: A cooperative store purchases goods directly from the manufacturers or wholesalers and sells them to members and others. Elimination of middlemen results in lower prices for the consumer goods to the members.
5. Cash sales: The consumer cooperative stores normally sell goods on cash basis. As a result, the requirement for working capital is reduced.
6. Convenient location: The consumer cooperative stores are generally opened at convenient public places where the members and others can easily buy the products as per their requirements.

Mail order houses are the retail outlets that sell their merchandise through mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading. For obtaining orders, potential customers are approached through advertisements in newspapers or magazines, circulars, catalogues, samples and bills, and price lists sent to them by post. All the relevant information about the products such as the price, features, delivery terms, terms of payment, etc., are described in the advertisement. On receiving the orders, the items are carefully scrutinised with respect to the specifications asked for by the buyers and are complied with through the post office.
Advantages

1. Limited capital requirement: Mail order business does not require heavy expenditure on building and other infrastructural facilities. Therefore, it can be started with relatively low amount of capital.
2. Elimination of middle men: The biggest advantage of mail-order business from the point of view of consumers is that unnecessary middlemen between the buyers and sellers are eliminated. This may result in lot of savings both to the buyers as well as to the sellers.
3. Absence of bad debt: Since the mail order houses do not extend credit facilities to the customers, there are no chances of any bad debt on account of non payment of cash by the customers.
4. Wide reach: Under this system the goods can be sent to all the places having postal services. This opens wide scope for business as a large number of people throughout the country can be served through mail.
5. Convenience: Under this system goods are delivered at the doorstep of the customers. This results in great convenience to the customers in buying these products.

This type of business is not suitable for all types of products. For example, goods that are perishable in nature or are bulky and cannot be easily handled, are not recommended for mail-house trading. Only the goods that can be:

• graded and standardised,
• easily transported at low cost,
• have ready demand in the market,
• are available in large quantity throughout the year,

There are lot of difficulties people would face if there is no retail shop as these act as a link between manufacturers/ wholesalers and consumers as they buy goods from manufacturers/ wholesalers and sell them directly to consumers. If there is retail shop in our neighbourhood then life become so hard. For buying any simple or daily use product we have to travel a lot of distance.
We can buy certain items as and when required if some retail stores are within the walking distance from our house. In case of emergency, we can easily get medicine and other necessary items if some shops are nearby. Otherwise, life can be very difficult.
They play an essential role due to following things:

1. Regular availability of products: The most important service of a retailer to consumers is to maintain regular availability of various products produced by different manufacturers. This enables the buyers to buy products as and when needed.
2. New products information: Retailers provide customers information about new products, their features, prices, etc. This information helps the customers in deciding which product to buy, thus facilitating their product choice.
3. Convenience in buying: Customers can buy according to their requirements. Also, they are normally situated very near to the residential areas and remain open for long hours which offers great convenience to the customers in buying products of their requirements.
4. Wide selection: Retailers generally offer customers a wide variety of goods such as stationery goods, dairy products and food items.
5. After-sales services: Retailers provide important after-sales services in the form of home delivery, supply of spare parts and attending to customers.
6. Provide credit facilities: The retailers sometimes provide credit facilities to their regular buyers which enables the customers to increase their level of consumption and, thereby, their standard of living.