Many countries have seen the growth of shopping centres and the decline of independent small-scale retailers.
- (a)State two features of a shopping centre.[2]
- (b)Explain two reasons for the growth of shopping centres.[4]
- (c)(i)Explain one reason why independent small-scale retailers: place a mark-up on their cost prices.[2]
- (c)(ii)Explain one reason why independent small-scale retailers: offer informal credit to their customers.[2]
- (d)Evaluate two ways that wholesalers help to ensure the survival of independent small-scale retailers. Give reasons for your answer.[6]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.
- [1] Range of shops/many shops/one-stop shopping
- [1] Range of goods/brands
- [1] Large building/premises/ large area
- [1] Several floors/floors
- [1] Lifts/escalators
- [1] Information desks/customer service
- [1] Food courts/restaurants
- [1] Restrooms
- [1] Play areas/entertainment/cinema
- [1] Car parking
- [1] Security / security guards / CCTV
- [1] Cash dispensers/ATMs
- [1] Petrol station
- [1] Phone booths
- [1] Air conditioning
- [1] Long opening hours
- [1] Enables one-stop shopping / buy all goods in one place / can obtain all goods under one roof; convenient to customers having numerous stores in one place / saves fuel cost / saves time travelling
- [1] Different types of brands / variety of goods; give customers greater choice / to choose from / easy to choose
- [1] Car ownership; they provide free / large car parks / saves time / more convenience for customers
- [1] They are often located out of town; making them accessible by car / where land is cheaper
- [1] They have many facilities / recreational space / leisure; such as cinema / bowling / dining options / spend quality time with family
- [1] Pleasant / well-designed surroundings / safe and secure / air-conditioned; more comfortable to shop there
- [1] More cost-effective for retailers; as lower rents than town centres
- [1] Large area of land; giving greater storage / delivery access
- [1] To cover their costs; in order to make a profit / prevent loss
- [1] To raise/increase the cost price; in order to make a profit / increase their profit / prevent loss
- [1] To build customer loyalty / build relations; as customers more likely to shop there / increase repeat sales
- [1] As it is given to known / regular customers, less likely to lose money / pay the shop back / decreases chances of bad debts; it can increase sales / attract customers
- [1] Can gain competitive advantage; over other stores not offering informal credit
- [1] Wholesalers are willing to sell in small quantities as they buy in bulk from manufacturers / independent small-scale retailers would only be able to obtain bulk orders from a manufacturer and could not afford such a large capital outlay
- [1] Provides credit thereby reducing small-scale retailers' capital requirements/helps cash flow / gives the opportunity for the goods to be sold before the small-scale retailer has to pay for them
- [1] Provides delivery / logistics so there is no need for retailer to have vehicle to collect, saving money
- [1] Wholesalers can provide warehousing which saves small-scale retailers the costs / risks of holding stock
- [1] Carries out processing e.g. labelling / packing / bottling / grading in the wholesaler's warehouse where the small-scale retailer can obtain stock when needed, eliminating the need for them to have their own warehouse
- [1] Variety of goods offered thus saving the independent retailers time in having to deal with each manufacturer individually / can easily diversity their product range to meet changing customer demands / able to compete against large-scale retailers
- [1] Wholesalers can supply small-scale retailers with market trends / consumer feedback which helps them make better decisions e.g. products, prices
- [1] Offer discounted rates/ trade discount/cash discount which enables small-scale retailers to sell and competitive prices and make reasonable profit
- [1] Use of voluntary chains where goods are ordered in bulk by chain securing discounts thereby lowering costs / enabling the retailers to compete by selling at cheaper prices. Members can benefit from advice inventory management or store layout to increase sales
- [1] Use of cash and carry where there is no credit or transport facilities given so prices are cheaper / the retailers can obtain goods at any time from the warehouse.
- Evaluation: In conclusion, wholesalers help ensure the survival of independent small-scale retailers in a number of ways. By offering branded goods at low prices, small-scale retailers can compete with large-scale retailers by selling quality goods at competitive prices.
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