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Even though there are a large number of shopping centres opening up all over Ireland, the sole trader will always have an important role to play
in the future for the following reasons.

1. Some people will always shop in the local store because they like the personal service on offer.

2. People will continue to visit small shops for goods such as tobacco, sweets and newspapers.

3.Some people need the week’s credit that they might get from the small sole trader.

4. Sole traders are usually located in local areas that are convenient for their customers, e.g. the village centre, beside the cinema or near a large housing estate.

5. Some sole traders are open at times when the large supermarkets are not, e.g. late in the evening.

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The world of retailing is constantly changing. The following are some of the main changes that have taken place in retailing in recent years and some which may take place in the future.

1.There will be a decrease in the number of small sole traders.

2.There will be an increase in the number of supermarkets,

shopping centres and department stores.

3.More people will shop from home using their home computers,

telephone and television.

4.There will be an increase in the number of voluntary retail groups as more small traders join together to compete with the larger stores.

5.There will be a greater demand for ‘green’ and healthy products.

6. Cash and cheques will become almost non-existent, with most people using electronic methods of payment such as Debit cards, credit cards, store cards, smart cards and online payments.
7.There will be an increase in the use of self-scanning devices in stores to reduce queue times and staff costs.

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AUTOMATIC SELLING

Automatic selling refers to vending machines such as soft drinks machines, mobile top-up machines, sweets and crisps machines and parking meters. Once the correct money is inserted in the vending machine, the item selected is dropped automatically out of the machine for collection by the customer.
Advantages:
1.Automatic selling operates 24 hours a day.

2.They are cheap to operate.

3.Very little supervision is needed.

Disadvantages:

1.Because they are automatic, they may cause a reduction in employment.

2.The machines may be vandalised.

3.If the machines break down, they may be out of order for some time and this means a loss of business and money for the owners.

DIRECT SELLING

This refers to products or services that are provided directly to consumers by the manufacturer of the goods or the provider of the service. Examples of direct selling include:

1. Dell assembling a computer for an online customer.

2. Picking your own fruit on a fruit farm.

3. Ordering a custom-made kitchen for your home.

4. Having your clothes designed and made for you by a fashion

designer.

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DEPARTMENT STORE

A department store is a large store selling a lot of different types of goods under one roof. Each store is divided into departments specialising in a particular type of product. Each department operates as a separate business, although they are all owned by the same store. Some are franchised out and simply pay a rent or a percentage of profits to the storeowner. Examples of department stores include

Arnotts, Brown Thomas and House of Fraser (Topshop operates a branch of their business in the House of Fraser department store in the Dundrum Town Centre). The main characteristics of department stores are:

1.They are usually located in large cities.

2.They have a lot of staff.

3.They provide customer services such as restaurants, toilets and information desks.

4.They usually provide a delivery service.

5.They give credit to those customers who have store cards.

DISCOUNT STORES
Discount stores usually sell a large quantity of one type of product, e.g. electrical appliances. Examples of discount stores include PowerCity and PC World. They have the following characteristics:

1.They sell their products at low prices.

2.They are open long hours.

3.They advertise a lot in national newspapers and on national television.

4.They offer an after-sales service and usually employ a lot of staff who are available to offer professional advice to consumers about the products they sell.

MAIL ORDER FIRMS

Mail order firms are retailers that sell goods through the post. The main characteristics of mail order firms are:

1.They advertise a lot on television or in the newspapers.

2.They usually operate from warehouses where orders arrive through
the post in the morning and goods are dispatched throughout the day.

3.Orders are also taken over the telephone and online on a 24-hour basis.

4.The goods are usually cheaper than goods sold in the shops and in some cases are not available in the shops at all, e.g. special edition CDs.

5.All sales are paid for by cheque or credit card and most come with a money back guarantee if the consumer is not satisfied.

SHOPPING CENTRES

Shopping centres are big buildings in which there are a lot of small, medium and large stores selling a wide variety of goods. These stores will be a mixture of independent retailers, multiple stores, department stores and supermarkets. Many shopping centres have been built in Ireland in recent years, including Dundrum Town Centre, Swords Pavillions, Blanchardstown Shopping Centre, The Square, Jervis Centre,

Crescent Shopping Centre Limerick, Liffey Valley, Northside, Omni Park Santry, Ilac Centre and St Stephen’s Green. Shopping centres are popular for the following reasons:

1.They are easy to get to, as they are usually located

near good roads.

2. Shopping centres have large amounts of parking space, both indoor and outdoor.

3.There are a large number of shops under one roof. Some shopping centres in Ireland have over 200 shops.

4.They have convenient opening hours, including Sundays and bank holidays.

5. Shopping centres are safe and usually have many security guards on duty.

6.There are plenty of facilities for customers, including toilets, restaurants, customer service desk and crèches.

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The main types of retailers operating in Ireland are as follows:
INDEPENDENT RETAILER /UNIT SHOP

The following are the main characteristics of an independent retailer.

1. These are usually sole traders who operate small shops such as newsagents, grocers, butchers, chemists, bookmakers, boutiques, etc.

2. They are usually located in towns or villages or in the

suburbs of major cities.

3. Many operate late opening hours, while some remain

open 24 hours a day.

4.They are often family-run businesses employing local

people during busy periods.

MULTIPLE STORE

A multiple store is a retailer that has a number of branches around a city or country in which they sell one type of product. For example, HMV is a multiple store because it has many branches that all sell CDs, DVDs, games, etc.

CHAIN STORE

A chain store is a retailer that has a number of branches around a city or country in which they sell different types of goods. For example, Dunnes Stores is a chain store selling groceries, clothes, household goods, toys, CDs and DVDs.

SUPERMARKET

A supermarket is a large self-service retailer that sells many types of food and drink products. The main characteristics of a supermarket are:

1. They often have a number of branches around the country.

2. Prices are usually cheaper due to bulk buying.

3. All sales are for cash or by credit or Laser card.

4. The stores are designed and decorated to appeal to shoppers and stock is always kept up to date.

Examples of supermarkets include SuperValu, Superquinn and

Tesco Ireland.

VOLUNTARY RETAIL GROUP

This is a group of retailers who agree to buy their stock from one particular wholesaler only. Examples include Mace and Spar. The main characteristics of a voluntary retail group are:

1. Due to bulk buying, prices are cheaper, so they can compete with the large supermarkets.

2. Each store is designed and decorated in the same way.

3. Each store benefits from group advertising, which is a lot cheaper than individual shops paying for their own advertisements.

4. Some voluntary groups also sell their own brand of goods at competitive prices.

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Retailers have many functions.
1. They sell goods in small quantities to the consumer. In other words, the retailer also ‘breaks bulk’.

2. They stock goods from a large number of manufacturers. They also stock goods imported from other countries.

3. They are usually located in a convenient place, e.g. in a village centre or in a housing estate.

4. Some retailers may give credit to their local customers.

5. Some rural retailers may provide a delivery service for elderly customers or customers who live far away from the shop.
6. Many large retailers offer online sales to their customers, e.g. Superquinn.ie and Next.ie.

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Cash and carry wholesalers arrange their stores like supermarkets and carry very large amounts of stock. Retailers come to the cash and carry and select the goods they want. They then pay for the goods and transport them to their shop by car or van.

Musgrave and Leydens are examples of cash and carry wholesalers.

Characteristics of a Cash and Carry Wholesaler:

-They do not give credit – all sales are cash or Laser card.

-They may not provide a delivery service.

-Prices are lower than in the traditional cash and carry business.

-They provide a wide range of goods from a large number of different

manufacturers.

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The wholesaler provides the following services to

the manufacturer and retailer.

TO THE MANUFACTURER

1.The wholesaler buys in large quantities from the manufacturer.

2. The wholesaler stores the manufacturer’s goods.

3.The wholesaler promotes the goods of some manufacturers.

4.The wholesaler provides information to the manufacturer about:

I)Trends in the market.

II)What the retailers think about the manufacturer’s goods.

TO THE RETAILER

1.The wholesaler sells goods in smaller quantities to the retailer. This is known as ‘breaking bulk’.

2.The wholesaler provides credit to retailers. This is very important to retailers, as otherwise they may not be able to stay in business.

3. The wholesaler may provide a delivery service.

4. The wholesaler sells a wide range of goods from different manufacturers.

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A franchise exists when the owners of a business give permission to another person to set up a branch of their business in another location in return for a fee.

ADVANTAGES

1.There is little risk attached to starting a business this way because
the business is already successful in other locations.

2. The name of the business is already well known, so it is easy to promotethe new business.

DISADVANTAGES

1.The new owner must pay money to the original owner each year, which reduces profits.

2. Sometimes the new owner cannot make any major business decisions, e.g. about products to sell or store layout, without getting
permission from the original owner.

Examples of franchises operating in Ireland include

McDonald’s (fast food), Subway (sandwiches) and Costa

Coffee (coffee shops).

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1. Primary Production
2. Secondary Production
3. Tertiary Production

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The service industry gets its name because the firms involved provide a service rather than a product to the consumer. These services include insurance, banking, medical services and much more.

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The most common channels of distribution:

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The most common channels of distribution:

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Manufacturer to Consumer

Goods that are distributed directly from the manufacturer to the consumer include

ships, aeroplanes and custom-made clothes or jewellery.

Example: Aer Lingus dealing directly with Boeing or Airbus when buying new aircraft; Dell selling computers directly to the consumer

Manufacturer to Retailer to Consumer
Most consumer goods, such as food, drinks, clothing, etc., are sold directly from the manufacturers to the large retailers, such as Superquinn and Tesco, who then sell them on to the consumer.
Example: Independent Newspapers selling the Irish Independent and Evening Herald to the newsagents, who then sell them on to consumers.

Manufacturer to Wholesaler to Retailer to Consumer
Sometimes manufacturers will not sell directly to smaller shops because the orders are too small. These retailers buy their goods from the wholesaler instead. Wholesalers buy in bulk from manufacturers and sell in smaller quantities to retailers.
Example: Mary O’Malley, owner of The Corner Shop, travels each week to Byrne’s Cash and Carry to purchase sweets, cans and crisps for sale in her small shop.

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1. Extractive  Industry
2. Construction  Industry
3. Manufacturing Industry
4. Service Industry

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A channel of distribution refers to the method used by firms to get their products or services from the factory to the consumer. Manufacturers will choose the channel of distribution that is most suited to their particular goods or services. The following are some of the factors that will be taken into account when choosing a channel of Distribution.

-The type of goods or services that are being distributed. For example, are they

perishable, bulky or very valuable?

-How quickly the goods need to reach the consumer. For example, is it

necessary that they are in the shops before people go to work each morning?

-Do the goods have to be imported or exported? In other words, will it be

necessary to use air or sea transport?

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Before goods and services are ready to be purchased and used by consumers, most of them must go through some or all of the above stages of production. This journey is referred to the chain of production. Let's look at the following examples
| PRODUCT | PRIMARY | SECONDARY | TERTIARY
| Wooden table | Forest/Tree | Carpenter/Cabinet maker | Furniture shop
| Butter | Farm/Cow | Creamery | Supermarket
| Wool Suit | Farm/Sheep | Tailor | Clothes Shop

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Tertiary Production, which includes all the services provided by the service industry.Examples of tertiary-sector jobs include accountants, teachers, marketing executives and insurance salespeople.

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Secondary Production, which includes all the products produced by the construction and manufacturing industries. Examples of jobs in the secondary sector include carpenters, block layers,computer hardware manufacturers and furniture manufacturers.

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Primary Production, which includes all the products produced by firms in the extractive industry. Examples of jobs in the primary sector includes miners, farmers, fishermen and forestry workers.

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Extractive industry refers to those businesses that take, or extract, raw materials from the land, the sea and the air. E.G:
Land: Mining, Agriculture, Forestry
Sea: Fishing, Oil, and Gas Exploration
Air: Wind Power
Manufacturers use the raw materials that are extracted to help them to produce goods and services.

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The construction industry refers to those businesses involved in the building of houses, factories, roads, airports, schools and hospitals. A lot of the materials the industry uses come from the extractive industry, e.g. metal, wood, stone and sand, while the rest are man-made.

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The manufacturing industry is made up of firms that manufacture or make finished products for the consumer using raw materials from the extractive industry as well as other man-made materials. Manufacturing firms produce a wide range of products, including laptops, mobile phones, furniture , clothes and much more.

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A retailer is a person who buys goods and services from manufacturers or wholesaler sells them in smaller quantities to the consumer at a profit

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The wholesaler buys in bulk from the manufacturer and sells in smaller quantities to the retailer.

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By Eve Carroll