Supermarket is another large scale relating institution. This was the first started in the United State of America. The practice of supermarket appeared during the great economic depression of 1930. In the beginning, supermarkets were established and operated mainly for the purpose of selling goods, vegetables, fish, meat, fruits, milk and other dairy products. But in present age, supermarket also merchandise such as household goods, cosmetics, dolls, electrical, medicines, handkerchief, soaps and so on.
It is difficult to find a satisfactory definition, it is given below:
Candiff, still and Govini have defined supermarket as- a supermarket is a large retailing business unit selling mainly food and grocery items on the basis of low margin appeal. High turn over, wide variety and assortment, self service and heavy emphasis on merchandise appeal.
So, a supermarket is such a retail institution in which varieties of goods, specially , foods varieties are sold at the same place. Effort is made to sell goods at minimum price so that most of the customers are benefited. It is organized and operated on the basis of departments, but it is very different from departmental store.
The characteristics of supermarket are given below:
Variety of products: all varieties of foods including other non-food items such as medicines, cosmetics, ready made garments, household goods are sold out from supermarkets.
Self services: self-services is given more priority in supermarkets, customer should bring the goods that they want to buy to the country by themselves.
Cheap services: goods are found at cheaper price in a supermarket. As it is not necessary to appoint seller in a supermarket and operation cost goes low, goods are sold at cheaper price.
Limited service to customer: supermarket do not provide services to customers as departmental store. They provide nominal limited services to customers free of charge.
Separate departments: separate departments are operated for certain items. Supermarkets are organised and operated on department basis.
Operation of supermarkets
Supermarkets are established mostly in the centuries of cities. Varieties of goods are made available and sold out at super markets. Only sellers are employed. The operation method of big super market is similar to the method of departmental stores. Supermarket are operates as joint stock company.
A board of director are formed to manage the business.