Question

do you think US combination stores ( supercenter) will dominate grocery ratailing why and why not ?

Answer 1

Answer : It is rightly said that US combination store(Super store) has been domonated grocery retialing store. As we know that super store market is a self service shop offering a wide variety of grocery with different brands has been under one roof.

The reasons for dominating super market over grocery stores are as follows :

• Lower cost of operation as compare to grocery store. Thousands of brands and products are availabe under one roof.
• Less requitrement of labour force as there is a self service system which has been acquired.
• Lower price of the product has been offered by the super market as compare to grocery store.
• Due to attractiveness and convience shopping become interesting and enjoyable for the customer.
• Higher degree of efficinency in the availability of the product as well as provide customer feedback service.
• Large scale of operation has been gained by the supplier.
• Convience to the customer.
• Making choice of the product.
• Supermarket store are located at the center.
• Less risk of Bad debts
• There is a dual benefits which shows that customer get lesser price as compare to grocery store where as owner get higher profit due to large turnover.

CRUX : There are various reasons which shows that US dominated by supermarket store as it increases economics of scale to the producer as well as lower price and convience to the customers.