The table in Fig. 2 shows the number of retail outlets in a town. 1 department store 2 supermarkets 3 variety chain stores 12 multiple chain stores 28 independent shops 1 street market [Figure 2] Use the information given in Fig. 2 to help you to answer the following questions.
- (a)(i)State two features of: a department store[2]
- (a)(ii)State two features of: a street market.[2]
- (b)What is the difference between a variety chain store and a multiple chain store?[2]
- (c)(i)Calculate the number of large-scale retailers in this town. Show your working.[2]
- (c)(ii)Explain two possible reasons why there are more independent shops in this town than other types of retailer.[4]
- (c)(iii)Why do some of the shops in the town offer after-sales service to their customers?[2]
- (d)The two supermarkets in the town are owned by large retail businesses who also own many other supermarkets. How important is transport for the successful operation of these supermarkets? Give reasons for your answer.[6]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2013). The mark or mark type is shown in brackets.
- [2] found in city centres
- usually multi-storeyed
- provide extra services or example
- offer delivery service for large items
- organised in sections/departments
- offer credit accounts/store cards
- provide one-stop shopping
- offer online service
- any other relevant feature
- [2] often held in the open air
- traders usually sell one particular line
- traders hire stalls from local council
- may attract tourists in some places
- traders have low overheads
- consists of stalls
- usually once/twice a week in a location
- may sell seconds/unbranded goods
- success subject to weather conditions
- may be covered daily markets
- bargaining may take place
- any other relevant feature
- [2] multiple chain store sells one particular product line
- variety chain store sells wide variety of goods
- any other relevant point
- [2] 1 + 2 + 3 + 12 (1 mark) = 18 (1 mark)
- (N.B. no marks for OFR as the candidate will not have identified all the large-scale retailers)
- Award full marks for the correct answer without working.
- [4] many consumers in the town may prefer to shop at the independent retailers who are offering what they require
- some of the independent retailers may be speciality stores offering goods/services the large-scale retailers are not offering (+ an example)
- the town council may have encouraged independent shops to stay in business by offering them low rates/car parking schemes
- the independent shops may have formed an organisation to promote themselves to shoppers
- the population of the town and surrounding area is sufficient to sustain all kinds of shops both large and small
- independent shops are easy to set up and easy to run (points relating to this 2 max)
- any other relevant point
- [2] to encourage repeat business
- to gain competitive edge
- because they are sell goods that need maintenance/delivery
- may produce additional income for the retailer
- any other relevant point
- [6] Level 2 (4-6 marks)
- Has discussed the importance of transport to large retail businesses owning supermarkets and has given a reasoned answer as to how important transport is to these businesses.
- Transport is needed to move people and to move goods. A large retail business such as a supermarket will rely on people using their cars to come shopping and so provide large car parks. These people are likely to buy food and household products in large quantities and load their cars from trolleys. Many employees of supermarkets come to work in their own cars.
- Most supermarkets own their own transport. They may have delivery vans to deliver shopping to customers who have ordered their groceries online. This is a growing trend in some countries.
- These supermarkets will certainly have trucks that are used to carry goods from regional distribution centres often located close to motorways to deliver to surrounding supermarkets. Without this kind of transport, supermarkets would not be able to keep their supermarkets supplied. They would have to have large warehouses attached to each supermarket and rely on deliveries to these supermarkets either directly from manufacturers or from various wholesalers.
- Transport is therefore very important for the successful operation of supermarkets. If there was no transport, supplies on supermarket shelves would soon run out.
- Level 1 (1-3 marks)
- Has commented on the importance of transport in relation to a large retail business.
- Transport is needed to bring goods from the supermarket's warehouse to the supermarket. Transport is needed to keep the supermarket supplied. Supermarkets do not have much storage. They buy directly from manufacturers who supply to large warehouses. Trucks are used between these warehouses and the supermarkets.
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