Busybuy Stores is a large retailing business with supermarkets in many parts of a country. It has regional distribution warehouses and its own fleet of delivery vehicles. It also offers an online shopping service to customers. As part of its expansion plans, Busybuy Stores has decided to build a new supermarket near the town of Ishi on the site marked Y shown on the map in [Figure 2].

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2013). The mark or mark type is shown in brackets.

1. [4] (a) Any four points × 1 mark each or two well explained points × 2 marks – large self-service store (184+ sq metres and 3+ checkouts); selling mostly food and household goods; they combine the trades of butcher, baker, grocer, florist, greengrocer, stationer, chemist; they encourage one-stop shopping; they rely on high volume with low profit margin on each item (SPQR); trollies and baskets are provided; customers pay at checkouts and may use automatic checkouts; many supermarkets offer purchasing online with a delivery service; may provide additional services + example such as snack bar; may have large car park; usually accept credit cards; often offer a loyalty scheme; any other relevant point
2. [4] (b) Any two reasons explained × 2 marks – Site Y has very good road communication at a motorway junction with two major roads; deliveries can be made very easily because of good road communication; it is likely to be a bigger site than Site X and so a large car park can be provided; it is not too far out of Ishi with good roads connecting to it; it is between Ishi and Vanu, both centres of population; any other relevant point
3. [2] (c) Any example of a large-scale retailer such as multiple chain store/variety chain store/ discount store/department store × 1 mark + one reason for choice × 1 mark such as – in the middle of a centre of population so customers are close by; may not need such large premises; close to some roads; customers may come by rail; any other relevant point
4. [4] (d) Any two advantages explained × 2 marks – can keep all its supermarkets supplied when stocks are required; can operate regional warehouses centred between several supermarkets; goods are under the direct supervision of drivers so less chance of theft/damage; advertising for Busybuy Stores can be put on the sides of the vehicles; saves hiring transport from transport companies and so may save costs; vehicles can be refrigerated to carry goods that need cold storage; vehicles can be used to deliver goods to customers using online shopping; any other relevant advantage
5. [6] (e) Level 2 (4-6 marks) Has discussed whether Busybuy Stores should develop its online shopping service rather than build new supermarkets and has given a reasoned opinion. (If a candidate has given a one-sided answer, award 4 marks max.) Busybuy Stores offers an online shopping service because many customers are now doing most of their shopping online and this trend is likely to continue. Other supermarket chains are also offering online shopping so it needs to compete in the market. Customers who use the Internet for online food shopping tend to spend more than customers visiting the stores. If Busybuy is making money from its online shopping service, it should certainly try to develop it and also try to improve it. At the same time, it is important for Busybuy Stores to continue to expand its operations by building new supermarkets where it can identify a gap in the provision of supermarkets. Other supermarket chains are likely to continue opening new stores so it needs to compete. The programme of building may slow. Busybuy Stores may have insufficient capital to build a large number of new supermarkets. We do not know. Busybuy Stores needs to expand both its online shopping service and also the number of its supermarkets. Level 1 (1-3 marks) Has commented on the development of online shopping and/or building new supermarkets with/without an opinion. Busybuy Stores offers online shopping. Many people have computers. They work for long hours and like to surf the net. They like to buy online. Many other people still go supermarket shopping. To cater for their needs, Busybuy needs to build supermarkets.