Mass merchandisers are the retailers that provide a one stop shop for all the groceries and provide multiple items like appliances, furniture, accessories, clothing etc. The mass merchandisers offer wide range of products in different categories and attract large number of customers on a daily basis. The idea behind mass merchandising is to get higher volumes at lower price.
In a mass merchandise store the people purchase low value items in bulk. The customers have to carry a trolley or baskets to keep stuff and all the items are scanned to get the price and weight of the product. To meet the heavy transaction demand these stores use the bi-optic scanners. Also, the merchandisers can very well provoke the impulse buying in big stores as the customers approach the cash counter they may pick up one or two more items. Cross selling can also be done in these big stores and this is a great source of generating more revenue.
Example: Walmart and Big Bazaar
1. Flexibility in choosing between various products.
2. High inventory turnovers help in generating revenues.
3. Achieve cost efficiencies with large scale merchandising.
1. Investments may be high.
2. Management control is difficult.
3. Customers tend to blame the store for any problems with the products.
Hence, this concludes the definition of Mass Merchandiser along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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