General Merchandise Store - Meaning & Definition

Published by MBA Skool Team, Last Updated: November 27, 2016

What is General Merchandise Store?

General Merchandise stores are those retail stores which sell a number of products which are used by the general public but excludes certain items like food and grocery. These are the stores which can be found at every corner of any residential area. These are mainly located in the area where people can easily access them from their homes. They keep a wide variety of products ranging from stationery like pen, paper and pencil to bathroom items like soap, shampoo and moisturizer. It is a one stop solution for a common man in need of any day to day life household goods. And that is precisely why it is called as a 'General' store.

All the items are usually sold at the retail rate. One important aspect of these stores is that it has a social significance. One would often find a group of people (mainly in rural area) just around a local merchandise store discussing their daily affairs. The owners of these stores are well connected because they meet a lot of people on daily basis. Traditionally the items offered at these stores have more or less remained the same. The most recent addition could that of a Mobile Recharge facility.

The business model is simple; buy from a wholesaler and sell it to end consumer at a marginally greater price. Hence, the shop owners do not make profits unless they are able to sell a large quantities of goods. However, in recent years these stores are facing trouble because of the 'mall culture'. It is said that when Walmart enters an area about 100 general merchandise stores in the 10 km radius close down. This is because big retailers like Wal-Mart, Reliance, Big Bazaar are offering the same thing to end consumers with an additional advantage of cheaper prices,greater ambiance and more comfort. Hence the future of these stores doesn't look so promising.

Hence, this concludes the definition of General Merchandise Store 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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