Supermarkets are self-service shops offering a wide variety of goods. The goods include food, beverages, and household products. They are large and occupy a wider area and they are organized into sections.
The centrally located in big premises and deals in all necessities that are needed in life. Their goods are normally at low prices and do not give goods on credit. They only sell their goods on cash. They may offer the services of repackaging the goods to fit the needs of people around them.
Pros of Supermarkets
- Low prices on goods
Supermarkets sell their goods at low prices as they stock in large quantities this makes them acquire at relatively low prices hence able to sell them at a low price and still makes a profit from it.
- Saves on labor
This is enhanced as they allow people to do self-service hence someone is only able to pick what he or she needs and the quantity in which she needed the product. That saves on labor as someone is not to pick for the customers what they need.
- Freedom of selection
There is freedom of selection as the customers are allowed to walk around and select the goods they need without necessarily having to ask for them hence they can only pick what they want according to the amount they have planned to spend.
- Shopping is easy and quick
Due to the availability of space and parking, the customers can do their shopping easily and quickly as they will be able to walk around and pick whatever they need without causing congestion so that they can be given whatever they want.
- They have a large turnover
Supermarkets have large turnover as they stock all the necessities that are needed in life hence people keep on buying the goods as they are the basic needs hence high turnover.
Cons of Supermarkets
- Requires a large amount of capital
The money needed to start a supermarket is a huge amount for the owner to put the needed stock. This may discourage a lot of investors as they will need to have a huge sum of money for them to invest in a supermarket.
- Do not offer goods on credit
Supermarkets do not give goods on credit and this discourages some of the customers who earn wages as once in a while they may be needed to take goods on the credit of which they will not be in a position to get them.
- Possibility of perishable goods getting spoiled
There is a possibility of perishable goods getting spoiled in case there were low sales and this may be a loss to the supplier of the good as they may not be able to be paid for the goods.
- Can lead to impulse buying
As the supermarkets allow customers to make their own selection of preferred goods, they may do impulse buying forgetting the necessities hence it is not really good for people who do not make the budget of what they intend to buy.
- Not good for technical goods
Goods that need explanation in order for them to be used are not good to be bought from the supermarkets as the customer may not really get the right information about the goods.
Supermarkets are good and mostly preferred by most of the consumers as they offer a variety of goods at a relatively cheaper price and the customers are allowed to make their own selection of the goods they give priority.