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Retailing is selling goods and services to the ultimate consumer. Thus, the retailer is the most expensive link in the chain of distribution. Being middlemen, they make their profit by charging the customer 25 to 100 per cent more than the price they paid for the item.



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Lesson 12


Retailing is selling goods and services to the ultimate consumer. Thus, the retailer is the most expensive link in the chain of distribution. Being middlemen, they make their profit by charging the customer 25 to 100 per cent more than the price they paid for the item.

The retailers operate through stores, mail-order houses, vending machine operators. There are different types of retail stores: department stores, discount houses, cooperatives, single line retailers. The major part (over 95%) of retail establishments concentrate on a single line of merchandise for example, food, hardware, etc. But nowadays there is a trend for many single line stores to take on a greater variety of supplies.

The retailer performs many necessary functions. First, he may provide a convenient location. Second, he often guarantees and services the merchandise he sells. Third, the retailer helps to promote the product through displays, advertising or sales people. Fourth, the retailer can finance the customer by extending credit. Also the retailer stores the goods in his outlet by having goods available.

Active Vocabulary


розничная продажа

ultimate consumer

конечный потребитель


звено, связь

mail-order house


vending machine operator

оператор автоматических машин (продающих мелкие товары: газеты, сигареты, и т.д.)

discount house

магазин с относительно низкими ценами на товары



single line retailer

розничный торговец, продающий какой-либо 1 товар

to perform functions

выполнять функции

extending credit

длительный кредит


рынок сбыта, торговая точка



Comprehension Questions

  1.  What is retailing?
  2.  What are four different types of retail stores?
  3.  What are at least two types of retailing that do not include the use of a store?
  4.  In what way does a retailer serve a customer?
  5.  In what way does a retailer serve a manufacturer?
  6.  Which percent of the price of the good sold goes to the retailer?
  7.  What is the trend with a single line retailer now?

Vocabulary Practice

Choose the necessary word and put it in the sentence.

  1.  ... is one function a retailer may perform.
  1.  mail-order
  1.  You can buy newspapers, cigarettes, cookies from a ... .
  1.  discount
  1.  A ... is the most expensive link in the chain between a producer and a consumer.
  1.  vending machine
  1.  The firm ... good quality of the product.
  1.  guarantees
  1.  She doesn't like to go shopping, she prefers to do it by ... .
  1.  retailer
  1.  The department store is having a sale and there is a 20 per cent ... on all light dresses.
  1.  extending credit
  1.  A wholesaler is an important ... between a producer and a consumer.
  1.  link


Jean has just moved into a new house. Her neighbour, Liz, has come over to welcome her.


I am very glad to see you here.


How do you like the new place?


It's marvelous. I am sure we are going to love living here.


Well, have a look! Here is a shopping guide for the neighbourhood and a booklet of discount coupons. New neighbours always receive them. There is one coupon for every store in the shopping guide.


Oh, thank you. It's come in time. I have a lot of shopping to do.


I can imagine, having just moved in. Not far from here there's a very good shopping center. You can also find a huge supermarket, a drugstore, some department stores in the neighbourhood.


Great. Are there any small stores nearby?


Oh, yes. The map is right here in the shopping guide. There is a little drugstore a few blocks away, a little grocery store next to it, a little boutique, an ice cream parlor, a pizza place. You can find a plant store not far from here too.


Are there any good discount houses nearby? We terribly need a new toaster. Everybody in my family likes toasts for breakfasts very much. I'd like to buy it.


Oh, sure. There is a good discount store in the shopping center. If you like, I'll come with you.


Oh, you needn't. I don't want to trouble you.


No trouble at all. I'd like to do some shopping too. If we go to the discount center I can go to that little cheese shop.


I don't want to bother you.


It's no bother at all. Make out your shopping list and I'll be your guide. By the way, you can use your discount coupon for the toaster. I am sure you'll buy a good one.


Well, it'll take some time to make a shopping list. I'll have to buy a lot at the grocer's.


This is a good idea. I should have gone shopping yesterday, so I'll make up my list too.


By the way, I like your dress very much. It's a perfect fit. Where did you buy it, if you don't mind my asking?


Thank you for compliment. I got it at a very nice little boutique. It's a bit expensive, but there are many interesting and original things. If you are interested we can stop there.


I'm afraid I can't. I have to cook dinner.


Oh, don't trouble yourself with the dinner. Look over the coupons I've given you. You can go out to dinner at a discount store.

Active Vocabulary

shopping guide

справочник магазинов

discount coupon

талон, дающий право приобретения товара по более низкой цене



department store






shopping center

торговый центр

Vocabulary Practice

Exercise 1. Change the sentences according to the model.

Model: My wife usually asks the children to do shopping.

My wife usually makes children do shopping.

  1.  He'll ask single line retailers to take part in the promotion campaign.
  2.  The chief usually asks his immediate subordinates to perform different functions.
  3.  It's necessary to ask him to recognize his wholesaling units.
  4.  It's important to influence ultimate consumer to buy the product.
  5.  Ask him to buy all these things in the discount house.

Exercise 2. Make responses to the sentences according to the model.

Model: I want to ask your brother to do shopping today.

Let me do shopping today myself.

  1.  I want my secretary to prepare the financial statement.
  2.  The board of directors wants the officers to plan product development.
  3.  He wants to speak with my friend about their possible partnership.
  4.  I want a lawyer to clarify this mailer.
  5.  The executive wants this manager to start market research.

Exercise 3. Answer the questions.

  1.  What kind of shops in Ukraine do you know?
    1.  What shops are situated not far from your house?
    2.  What goods can be bought there?
    3.  What specific features do channels of distribution have in Ukraine?
    4.  What reforms does Ukraine need to reorganize the channels of distribution?

Grammar Exercises

Exercise 1. Change the sentences according to the model.

Model: I should go shopping today.

I should have gone shopping yesterday.

  1.  The firm should apply for credit very soon.
  2.  They should see about the new refrigerator today.
  3.  I should take my wife shopping a bit later.
  4.  They should get groceries at the supermarket this afternoon.
  5.  You should order a new car.
  6.  He should buy a computer today.
  7.  He should speak with the manager today.

Exercise 2. Change the sentences according to the model.

Model: If there is a shopping center nearby, we will go there together.

If there had been a shopping center nearby, we would have gone there.

  1.  If she buys too much, she won't be able to carry it herself.
  2.  If there is ice cream in this store, we will bring the children some.
  3.  If she tries the new boutique today, she will come very late.
  4.  If the shop offers home delivery, he will ask them to deliver.
  5.  If you shop downtown, you will find the shopping centre.

Translate into English.

  1.  Розничная торговля – это продажа товара конечному потребителю.
  2.  В западных странах есть различные типы торговых учреждений: универмаги, супермаркеты, магазины с низкими ценами, посылторги и т.д.
  3.  На этот товар можно получить 10% скидку.
  4.  Розничный торговец может предоставить покупателю длительный кредит.
  5.  Эта фирма имеет множество торговых точек по всей стране.
  6.  Розничный торговец выполняет много важных функций.
  7.  Я не знаю центр города, мне необходим справочник магазинов.
  8.  В торговом центре вы найдёте все необходимые вам товары.
  9.  В этом магазине нет бакалейного отдела.


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