Reasons Why Small Retailers Still Surviving in business

 

Reasons Why Small Retailers Still Surviving in business

Small retailers in business

The small retail trader, like the multiple shop or a cooperative store is engage in retailing i.e. selling goods in relatively smaller quantities to the final consumer. The  multiple shops and cooperative stores are, however, very large retail Organisation which, in most cases, operates at very low costs. By virtue of the advantages these big retail Organisations enjoy over the small retail trader as regards the provision of capital and purchasing at great discounts one will hesitate to conclude that the small retailer has no room to survive. Nevertheless,he has continued to operate to this day. The reasons are not far fetched and are presented below as follows:

In the first place, it must be remembered that the small retailer is a sole trader who enters into business on his own account, contributing the capital all alone. This capital is likely to be small as compared with those provided by the cooperative or multiple stores. He could, in fact increase capital by joining hands with others sole traders but desire to remain independent makes combination impossible and this desire will continue to emphasize the existence of the small retailer.

Secondly, the small retailer trader enjoys some relative advantage which justify his existence. He can take prompt decisions without having to consult or convince anyone. It is said that there is bureaucracy in larger Organizations because of the formalities which must be followed; as such major decisions Ake unnecessary longer time to take effect.

A small retail trader would not mind establishing his business in remote areas for example villages, or in slum areas. Normally, we do not expect an organisation such as the bats shoe stores to open a branch in a village with a population of less than one thousand inhabitants but one is sure to find small retailer in every village and that is the more reason why small retail trader continue to exist and survive.

A small retailer does not provide expensive facilities like air conditioning, music, etc. This, the big firm do and add the expenses of running them to the price of the goods sold. Many customers therefore prefer to buy from small retailers whose price are reasonably low thus burtressing the survival of the small traders retail business.

A small retailer knows his customers well and can provide services that the bigger Organisations would not normally do. He or she also sells in very small quantities and gives credit to his customers. This makes it possible for poor people to patronise his activities. One is yet to hear of the day kings ways stores will sell frozen meat to housewives on credit.

Multiple shops normally deals in only one items of good, let say shoes. A small retailer sells varieties of items ranging from a needle to electric sewing machines. It is thus very convenient to shop at the small traders premises. Which make his business continue to exist and survive.

The small retailer has no fixed working hours. He is almost always at the services of his customers and this also goes to justify his supremacy over the large multiple and cooperative stores.