Large retailers

Large-scale retailers come in several forms:

• Departmental store: a large store with many departments under one roof, each selling one kind of goods, so that buyers can get almost everything in one place. It is usually in a central location, offers many services (restaurants, rest rooms, home delivery), and has high operating costs.
• Chain stores (multiple shops): many similar branches in different places, owned by one firm. Buying is done centrally at head office; goods are sold at fixed prices, for cash; and the goods are standardised and branded.
• Mail order houses: sell by post. Customers order after seeing advertisements or samples, and goods are sent by post or courier. There is no personal contact with buyers; only little capital is needed, and with payment in advance there are no bad debts.
• Consumer cooperative stores: owned and run by consumers, at least 10 of whom must join to form one. Buying directly from producers removes middlemen, so prices are lower.
• Super markets: large stores selling food and household goods by self-service: customers pick goods from the shelves themselves and pay at the counter. Prices are low, and sales are for cash.
• Vending machines: sell low-priced, pre-packed goods of uniform size and weight, such as drinks and snacks, when a coin or card is used. ATMs work in a similar way for cash.