What is Cash & Carry Retail?
Cash and carry retail is a type of business that operates on an extremely simplistic level. As is indicated in its title, cash and carry businesses accept only cash for their product or services. Likewise, once products have been purchased, the customer is responsible for carrying their products away from the place of purchase. Unlike a standard grocery store, no cart assistance services are offered, nor are credit cards or credit accounts of any kind accepted.
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History
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The cash and carry philosophy was invented by a Lawrence Batley of Huddersfield, England. Batley invented the first cash and carry business in 1958, called Batleys Cash and Carry, which inspired a number of other cash and carry retail stores across the U.K. Batleys Cash and Carry was eventually bought out by Bestways Holdings Ltd., and as of 2010, continues to flourish with 50 locations throughout the U.K.
Function
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A cash and carry business is a form of trade within the wholesale sector, which means that they provide the optimum price but with minimal conveniences. Examples of a cash and carry business would be Ikea. Stores like Ikea provide quality products at wholesale prices but require that the customers do most of the work in obtaining and carrying away their purchases.
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Features
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Cash and carry businesses often exist in a warehouse, as is the nature of many wholesalers. This basic, large setup makes it possible for cash and carry businesses to carry large amounts of their products and make them readily available to customers. This general setup minimizes expenses for both the customer and the cash and carry business.
Benefits for Sellers
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The cash and carry business model is beneficial to both the seller and the buyer in a business environment. This simplification of sales allows for the business to minimize their obligation to accommodate customer dissatisfaction, or to take responsibility for a lack of wares. Typically in a cash-only sales setting, requirements for returns are restrictive, often adhering to a 30 days policy, or a no-returns policy.
Benefits for the Buyer
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Though it may seem that the cash and carry business model is minimally convenient for a buyer, some prefer this simplified and up-front policy to more complex business models. A cash and carry store will unfailingly offer better pricing for consumers, and though return policies are more restrictive, the benefits are that a cash and carry business is thus required to create a product that is high enough in quality that consumers will purchase it in spite of its lesser convenient return policy.
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References
- Photo Credit grocery store image by robert mobley from Fotolia.com
