The notices in Fig. 1 are displayed in shop windows. ANNUAL SALE LAST FEW DAYS SUPER DUO STORE 25% OFF MARKED PRICE FOR THIS WEEK ONLY FAB MULTIPLE CHAIN STORE CLOSING DOWN SALE AT THIS BRANCH CONTINUE TO SHOP ONLINE USING OUR WEBSITE www.fabfab.com [Figure 1] Use the information given in Fig. 1 to help you to answer the following questions.

Mark scheme

Marking points from the official mark scheme (May/June 2015). The mark or mark type is shown in brackets.

1. [3] (a) $200 × 25/100 = $50 (1 mark)
2. $200 - $50 (1 mark) = $150
3. OFR applies. If the correct answer is given without working, award full marks.
4. [4] (b) Any four points × 1 mark each and up to 2 marks for a well-developed point
5. some retailers want to dispose of old stock to make room for new stock
6. some retailers sell fashion goods that may go out of fashion quickly e.g. clothing
7. some retailers may sell goods that deteriorate quickly e.g. food
8. some retailers may be short of cash and this may enable them to increase cash flow
9. some retailers want to increase their trade so reducing prices will encourage sales
10. it is traditional for retailers to hold twice yearly sales
11. to dispose of slow selling lines and so get back some of the purchase price
12. because they are closing down and want to dispose of stock
13. some retailers stock goods that hold their value e.g. jewellers
14. some retailers sell goods where there is little change as regards style/type of goods sold
15. some retailers sell goods that are in constant demand e.g. sweets, newspapers
16. some retailers may use sales promotions instead
17. some retailers lose revenue and cannot afford to
18. some retailers have good turnover with small profit margin
19. any other relevant point
20. [2] (c)(i) costs – anything incurred or paid for in production/supply of goods/services (1 mark)
21. price - the amount of money charged when goods are bought/sold (1 mark)
22. any other relevant point (0 marks for examples)
23. [6] (c)(ii) Level 2 (4–6 marks) Has assessed the impact of the growth of supermarket chains on other types of large-scale retailers with sound reasoning.
24. In many countries there are many types of large-scale retailers such as department stores, supermarkets, hypermarkets, multiple chain stores and variety chain stores. Many new supermarkets have opened to sell produce to local communities. Although the main products offered are food and household products, these supermarkets are now offering a wide range of goods such as electrical goods, household appliances and clothing. They have huge buying power and so can take advantage of economies of scale and get goods at heavily discounted prices passing on lower prices to the consumer. They cater for shoppers who want to obtain all their goods in one place and so save time.
25. This development has brought them into competition with multiple chain stores selling clothing or electrical appliances who have sometimes found that they need to concentrate on their larger branches and have closed small branches in many smaller towns.
26. The development of online retailing has also had an effect on large-scale retailing. All type of large-scale retailer have developed shopping websites. Otherwise they would be left behind. Many people now prefer to shop online rather than visit shops. Large-scale retailers must cater for this trend which may reduce the cost of and need for a physical presence in town centres.
27. Large-scale retailers who offer a different shopping experience may survive but only if they diversify. This would apply to department stores. Shops who offer a small range of a large number of products i.e. variety chain stores have often experienced difficulty although there is considerable demand for low priced goods with other retailers satisfying this demand.
28. The growth of supermarket chains has certainly had an effect on other types of large-scale retailing and often reduced the range of shops available to consumers in shopping areas.
29. Level 1 (1-3 marks) Has commented on the growth of supermarket chains in relation to other types of large-scale retailers.
30. There are several kinds of large-scale retailers. There are supermarkets and hypermarkets. There are department stores and multiple chain stores. There is a lot of competition between retailers. Supermarket chains have opened new stores. Some chain stores have closed. Others have expanded some of their stores. Do not give credit where small scale retailers have been analysed
31. [4] (d)(i) Any four reasons × 1 mark each and up to 2 marks for a well-developed point.
32. they want to expand their markets and cater for new groups of customers
33. their competitors are offering this service and so they need to compete
34. they may save on set up costs for new stores which may not be successful
35. they can show details of the goods offered e.g. colour/sizes
36. they can offer a shopping service 24/7
37. they can locate the warehouse to service online shopping in a low cost area
38. they save the costs of high rents, labour costs for sales assistants
39. any other relevant point
40. [1] (d)(ii) Any one cost × 1 mark – set up costs of creating the website, costs of maintaining the website, increasing charges for web address to come early on list, fees for search engine, transportation / delivery costs, cost of returned goods
41. any other relevant point