TYPES OF RETAIL OUTLETS

Convenience ‘corner’ stores

These stores were once located in residential areas but are now commonly attached to service
stations. They sell a variety of products, concentrating on food items, magazines and
newspapers. Prices at these stores are usually higher than at supermarkets and there is
generally less choice available. However, they are convenient.

Specialty stores
Hairdressers, newsagents and gift shops are examples of specialty stores. They specialise in
either one type of product or service or a limited range of a few products. Some specialty stores
are part of a larger franchise chain such as Dymocks and The Body Shop. The main advantage
of purchasing goods from a specialty store is the service and product knowledge provided by
the sales staff

Discount variety stores

These stores are of a plain design and offer basic customer service. Their products are normally
cheaper than those of department stores. Kmart and Target are both examples of this type of
retailing. Discount variety stores attract a large number of customers because of their
convenient location, large range of stock and cheaper prices.

Factory outlets
These shops are often near the factory where the goods were manufactured. The goods are
normally sold to the public at a discount because the costs of transportation and wholesalers
are not involved in the distribution chain. Factory outlets usually offer big savings on goods.

Department stores
Myer and David Jones are two well-known examples of retail department stores. These stores
sell a large range of products within the one store. Because they buy in bulk, their prices are
often cheaper than at specialty stores. However, because they offer some sales assistance on
the shop floor, their prices tend to be higher than those of a discount variety store.

Supermarkets
These are large, self-serve stores such as Woolworths, Aldi and Coles. Originally selling only
food items, they are now becoming more like discount variety stores, offering a large range of
items for sale. Some supermarkets that have expanded to sell an even larger range of products
have evolved into hypermarkets.

Activities
Over the past ten years or more, two interesting trends have emerged in retailing. One is the
increase in the number of grocery supermarkets with delicatessens, bakeries and coffee shops.
Another is that, during the same period, the number of small, family-owned grocery stores has
decreased.
1) What do you think has caused this trend in retailing?
 2)
Consumers are increasingly choosing larger supermarkets and online options due to
convenience, lower prices, and technological changes, leading to a decline in small
family-owned grocery stores.
3)
4) What strategy would you suggest to help a small, family-owned grocery store prosper?

To thrive, a small family-owned grocery store can focus on offering unique local products,
providing excellent customer service, and embracing online channels for convenient shopping.

5) What are the benefits of a convenience store? What groups might benefit most from
these types of stores?
6)
Convenience stores offer fast access to essential items, short wait times, and extended
hours, making them especially useful for busy individuals, commuters, and those
needing quick, small purchases.

7) Complete the table

DIFFERENT PAYMENT OPTIONS

Payment Method How it works Advantages Disadvantages

Cash You give seller cash and Holds a value in the Can be copied, to much to
they can use it to buy other world carry
things

Credit (credit card) You spend money and pay Can buy things when u Can be annoying to pay if u
for it later don’t have money, don’t have money
improves credit card
score to be able to
 borrow more money

Store credit Money in the store Can pay easily Cannot spend anywhere
else

Paypal Makes money saffer to Can return the money if Some people don’t accept
transfer found a scam paypal

Electronic funds transfer: Direct transfer Makes it easier Can be scammed

debit cards and BPAY®

Cheque Can give money without easier Can be scammed

value

Direct Debit

Bookup

Layby

Afterpay