A super market is a large retailing business unit selling wide variety of consumer goods on the basis of low margin appeal, wide variety and assortment, self-service and heavy emphasis on merchandising appeal. It is a large store that sells a variety of food and household items to customers.
Supermarkets usually offer products at low prices. To generate profits, supermarkets are trying to counteract the low margin of profit with a high volume of sales. The goods traded are generally food products and other low priced, branded and widely used consumer products such as grocery, utensils, clothes, electronic appliances, household goods, and medicines. Super markets are generally situated at the main shopping centres.
Some of the important characteristics of a super market are as follows:
- A super market generally carries a complete line of food items and groceries, in addition to non-food convenience goods;
- The buyers can purchase different products as per their requirements under one roof in such markets;
- A super market operates on the principle of self-service. The distribution cost is, therefore, lower;
- The prices of the products are generally lower than other types of retail stores because of bulk purchasing, lower operational cost, and low profit margins;
- The goods are sold on cash basis only; and
- The super markets are generally located at central locations to secure high turnover.