Points for Discussion

1. What advantages does a retail chain have over a retailer who operates in a single store? Does a small retailer have any advantages in competing against a chain?

2. Explain the growth and decline of various retailers and shopping centres in your own community/city.

3. Many producers are now seeking new opportunities in international markets. Are the opportunities for international expansion equally good for retailers?

4. Which types of wholesalers are likely to become more important in the next 25 years? Why?

5. Discuss the future growth and nature of wholesaling if low margin retailing and scrambled merchandising become more important.

6. Are there any particular lines of trade where wholesalers may have increasing difficulty?

7. Discuss how computer systems affect wholesalers’ operations.

8. Discuss the evolution of wholesaling in relation to the evolution of retailing.

9. How are customers motivated in Ukraine? In you opinion, what is the best way of motivating customers?

Exercises:

Ex. 1. Match these words with their corresponding definitions.

1) retailer	a) reduction in the original price of a product
2) profit	b) the variety of products that a company makes or sells
3) overheads	c) a company which sells goods or equipment to another company
4) turnover	d) a building where goods are stored
5) range	e) the rate at which goods are sold
6) supplier	f) the expenses involved in running a business, such as rent, lighting and salaries
7) discount	g) a piece of paper which tells customers how much money they have paid for a product
8) warehouse	h) a person or shop that sells goods to the public
9) receipt	i) the amount of money which is made by a business, for example when it sells something for more than it costs

Ex. 2. Fill the gaps with the given words.

assortment retailer customer wholesaler

competitive promote discount

guarantee channels consignment

1. _____ is the most expensive link in a chain between a producer and a consumer.

2. _____ is an important link between a producer and a customer.

3. I can’t _____ you good quality of service.

4. Usually a wholesaler has a large _____ of items.

5. A wholesaler does not deal with a _____, he deals with a retailer.

6. There are different _____ of distribution helping to bring goods to the market.

7. The department store gives a 30% _____ on all shoes.

8. They work on very small profit margin so their prices are very _____.

9. A sales agent may conclude agreement on _____ basis which means that the goods remain the absolute property of the principal until delivered to the buyer.

10. I am going to create a network of agents to _____ our new product.

Ex. 3. Read the text about the history of Marks & Spencer. Complete the gaps with the words from the list.

range suppliers

turnover special offer

retailer leading name

The origins of Marks and Spencer, Britain’s best known (1)_____, go back to 1882 when a Russian refugee, Michael Marks, began selling simple household products from door to door, in villages in North East England. In 1884 he set up a stall in Leeds Kirkgate market and to overcome his language problem, he made a sign displaying his (2)_____: “Don't ask the price, it's a penny”. By 1894 Marks had eight stalls and had invited Tom Spencer to join him in what was to become one of the most famous business partnerships in British history.

By the 1920s Marks and Spencer stores were selling some food as well as household products, but the first extensive expansion of the (3)_____ came in the early 1930s when canned goods, cake, fruit and vegetables were introduced. Today Marks and Spencer sells a wide variety of products in over 670 stores worldwide. They have a 16 per cent share of the UK clothing market, a position they maintain by insisting that their (4)_____ manufacture new collections up to one year in advance of the season. The clothes are sold under their own label St. Michael, which has become a (5)_____ in the British fashion industry.

Marks and Spencer's (6)_____ for the financial year 1990 was £389 million.

Ex. 4. The words in the box have their letters in the wrong order. Choose from them to complete the sentences below and write the word, with the letters in the correct order, in the gaps below. The first has been done for you, and the first letter of each word is given.

sols raeled rutrnoev icysretu aihnc

nidedmaml utsciond hsovadeer

wrluhesole kocts tnloocr hacs dna cryra

1. A loss leader is something sold very cheaply to encourage customers to come into a shop; once they are in, they may buy other things at profitable prices.

2. The amount of money taken (without any deductions) or the amount of goods sold, is the t_____.

3. Deciding how many items should be ordered, and when, is a matter of s _____ с _____.

4. A number of shops belonging to one company is а с _____.

5. Shops possess safes for s _____.

6. A retailer buys his goods at a d _____ and sells them at a retail price to produce a profit.

7. A retailer buys his stock from a w _____.

8. The costs of running a retail operation caused by lighting, heating, rent, wages, etc., are its о _____.

9. The retailer is the m _____ between the manufacturer or wholesaler and the customer.

10. The everyday name for a warehouse from which a retailer collects the goods himself or herself is a c _____ a _____ с _____.

Ex. 5. Match the words on the left with the words on the right to make compound nouns.

distribution; mass; leading; sales; surplus; end; profit; consumer; net;

system; name; market; profit; income agent; margin; user; goods.

Ex. 6. Combine a word from A with one from B to match each of the definitions below.

A department shopping sales stock retail special bargain

B hunters pitch stores chains offers centres turnover

1. _______ a persuasive argument to sell a product

2. _______ the rate at which goods are sold

3. _______ sales promotions to attract customers

4. _______ shops with outlets in many locations

5. _______ customers who seek the lowest prices

6. _______ large shops, usually located in city centres, which sell a wide variety of products

7. _______ retail facilities where customers have access to a variety of different stores in the same location

Ex. 7. Complete the gaps with the words from the list.

market deal

secure orders

control stocks

Sephora is a French beauty supermarket chain which has revolutionised the way that perfumes and fragrances are sold. Sephora operates in a (1) market that has traditionally been served either by small exclusive perfume stores or by department stores. It (2)_____ a wide selection of top products from beauty houses like Chanel and Estée Lauder. Two years ago the original founder of Sephora, Dominique Mandonnaud, was approached by the luxury chain LVMH (Moet Hennessy ― Louis Vuitton) with an offer to buy the company and one year later a (3)_____ was made. Today Daniel Richard, the new president (4)_____, all aspects of the business. He has managed to (5)_____ the support of many of the big brands in the perfume business and has placed big (6)_____ with them. Sephora has ambitious plans for the future, and recently opened a store in New York.

Ex. 8. Read the text about the American company Wal-Mart, the world's largest retailer. Replace the words in italics with the words given below.

profits overheads niche

range suppliers discount

Wal-Mart is already manoeuvring to bring its vision of retailing to the European consumer. In the United States the company operates stores that are often twice as big as their European equivalents and which sell a huge (1) selection range of quality products at a (2) significant price reduction _____. However, duplicating its success on the old continent may prove to be just as difficult as conquering the New World's markets. Firstly, Europe with its limited space available for building new stores and its high (3) operating costs _____ may make it more difficult for the company to produce the same (4) positive financial results _____ that it has had in the US. In addition to that, it may be difficult to persuade (5) companies that provide goods for retailers _____ to do business with them in the same way as they do in the US. But with its purchase of the British supermarket chain ASDA, Wal-Mart clearly wants to establish a (6) particular market _____ for itself in Europe.

Ex. 9. Complete the questions with the best word or expression.

1. Who are our existing customers?

a) customers b) consumers c) customs

2. Where are they ______?

a) standing b) located c) staying

3. How do we ______ with them at present?

a) communicate b) reach c) attract

4. What is our unique selling ______?

a) idea b) thing c) point

5. Who and where are our ______ customers?

a) potential b) desired c) hopeful

6. How can we ______ them through advertising?

a) focus b) reach c) get

7. What do we know about our ______?

a) opponents b) opposites c) competitors

8. How is our ______ of products / services different from theirs?

a) range b) size c) scope

9. What are their ______?

a) ups and downs b) strengths and weaknesses c) give and take

10. How do they advertise? What ______ do they use?

a) media b) routes c) canals

Ex. 10. You own a wine business in Slovenia. You decide to write to Connoisseur because you want to become a distributor for them in your country.

Match the halves of the sentences below. Then use them to write the letter. Describe the benefits your company can offer.

1) Our company is a	a) distributing high quality wines.
2) We specialise in	b) we could discuss the rate of commission and your terms of payment later.
3) We have contacts	c) is one of the biggest in the country.
4) Our sales network	d) well-known and reputable firm with many years' experience.
5) We have four warehouses	e) we could be appointed your sole distributor.
6) We would be willing to	f) from a bank and our local Chamber of Commerce.
7) We would appreciate it if	g) accept our offer and we look forward to hearing from you soon.
8) If you are interested in our offer	h) share the costs of an advertising campaign to promote your wines.
9) We can supply references	i) with major retail outlets throughout the country.
10) We hope you will	j) located in Slovenia's major cities.

Ex. 11. Translate into English.