What are the types corporate retailing?
Corporate Retailing is a new type of retailing which has come into existence due to severe criticism against wholesalers and various kinds of middlemen.
There are two types of corporate retailing viz.:
- Retailers’ cooperatives, and
- Consumers’ cooperatives.
- Retailers’ Cooperatives:
The chief characteristic of these cooperative societies is group buying rather than group selling. They make bulk purchases and therefore they get the merchandise at a lower cost. In India, this system is not prevalent, probably because the retailers are spread out. Moreover, in the case of food items, the government agencies play a dominant role and the retailers are virtually absent. Even if they try to form societies, they are controlled.
- Consumers’ Cooperatives:
A Consumers’ cooperative is a retail business owned and operated by ultimate consumers who purchase and distribute goods and services to the members only. The consumers form cooperative groups for the purpose of opening retail stores through which their own needs and the needs of those who choose to patronise their outlets may be supplied.
There are certain principles of these consumer cooperatives like Open membership to anyone, Democratic Control as each member has only one vote irrespective of the number of shares held. Members are allowed purchase bonus on the basis of their purchases from the society. All sales are made at existing market rates that too only on cash basis.
