A Local Kirana Store or any other shops selling any kind of goods are all mentioned as retail outlets Mention how these stores differ in their organizational structure from present retail outlets?

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  • Kirana stores are owned and operated on a small scale, usually in a space of 500sq.ft. or less. These places are easily available within residential localities. However, for a supermarket to operate, a minimum of 2000 sq. ft. would be required, and usually, so much space would usually be found in commercial localities.
  • Supermarkets have the benefit of economies of scale over kirana stores.
  • Kirana stores are operated by the owners themselves and thus provide the benefit of low operational costs.
  • Supermarkets are capable of eliminating the wholesalers from the chain and can provide benefits of saved margins.
  • Kirana stores target a much smaller market than supermarkets and thus, can be more responsive in terms of their exclusive demands.
  • Supermarkets often offer more variety to customers. Moreover, it is likely to receive the newly launched products earlier than kirana stores.
  • Kirana stores are likely to be in the immediate locality and thus have a better understanding of customer preferences.
  • Supermarkets often offer the best bargains, and experts from the company explain the usage and care of a particular product to its potential buyers.
  • Kirana stores are more likely to provide services like free home delivery.
  • Supermarkets have big names backing them; moreover they have stronger advertising, probably on national or state level. At the same time, there have been instances of kiranas selling at prices higher than the MRP and tampering with the quantity of loose products.
  • Each of us knows our kirana store for a long time, probably from our birth or so. Thus, the customer-trust ratio is very high. The billing is also very fast when compared to the supermarket.

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