Retail Trade Network
A local grocery store’s trading network is a set of trading enterprises located within a particular territory or under joint management.
The local grocery store provides the opportunity to quickly and conveniently acquire the necessary goods and services with minimum effort and time in the conditions of free choice from a variety near the place of work and housing in convenient quantities.
The retail trade of the grocery store network performs the following functions: purchase, transportation, storage, sub-sorting, part-time, bringing to market, selling goods, accepting risk, financial activities, informing the market, and obtaining information about the market.
The retail enterprise of grocery stores purchases and sells goods to deliver the necessary services to customers.
Local Grocery Store and its Problems
A store is a specially equipped in-house building or part intended for the sale of goods and services to customers and provided with trade and all necessary auxiliary, administrative, and domestic premises, as well as premises for receiving, storing, and preparing products for sale.
There are universal, specialized shops that offer a mixed assortment of goods.
Universal store (department store): A store with an unlimited range of non-food items and a department of food products. Controlling operational costs can be the biggest challenge for this kind of grocery store.
Supermarket – a self-service store with a universal assortment of food products and a limited range of non-food items of daily demand. The most common problems of the supermarket are time wastage, strain on the working employees, and less efficient software. Therefore, the inefficient process is one of the biggest challenges of this type of grocery store.
Hypermarket: A store selling luxury and consumer goods, emphasizing essential consumer goods and food. Managers of such grocery stores cannot understand the inventory process. What to deliver, where to deliver, and what time to give?
A specialized store is a retail enterprise that sells one group of goods or a subgroup of products.
A grocery store with a combined assortment of goods is a retail enterprise that sells several products connected by common demand and satisfying individual needs. The enterprises of this type include “Goods for Children,” “Household Goods,” “Goods for Leisure,” “Fruits and vegetables,” “Makeup and Jewelry,” etc.
Principles of a Grocery Store
The difference between a supermarket and a Hypermarket is noticeable. A supermarket is a large department store with self-service technology and the sale of goods through the cash register. A grocery store’s challenge can be that many people shop daily. The average number of customers in one supermarket chain is 3,500 people per day.
The Pricing and Space Issue
Grocery stores in the “Premium” class can face many pricing, discounts, and space challenges. The spaces of such grocery stores do not exceed 2 thousand square meters; in their variety, there are up to 20 thousand items. Here are essential food products, a minimum amount of vegetables and fruits, and a small selection of alcohol, meat, and fish. But the main difference from discounters, in this case, is the price. The trade markup to wholesale prices in the economy-class supermarkets is 30% – 40%.
The Retail Network of Grocery Stores is Characterized by:
- the ratio of grocery store enterprises engaged in trade in food and non-food products
- the specific gravity of the fixed network in the total number of grocery store enterprises
- the specific weight of specialized grocery stores in the total number of trade enterprises
- used forms of sale and methods of service
- the ratio of retail space used for the implementation of certain groups of goods
- the ratio of trade and non-trading areas of the grocery store
- duration of use of the working area during the day (mode of operation)
- the ratio of parts of the total area of a grocery store trading enterprise
- The specific gravity of grocery stores provided with refrigeration equipment, including those that trade in perishable goods
- the average size of the sales area of a single grocery store
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