Explain one influence on the choice of suppliers for a large discount supermarket.

One factor that will influence the choice of supplier by a large discount supermarket will be the ability of the supplier to supply goods at a suitably low purchase cost to enable the supermarket chain to offer cheap prices to store visitors. Discount supermarkets such as Aldi and Lidl position themselves in the supermarket industry by offering consistently lower prices compared with mainstream chains such as Tesco and Sainsbury's. In order for them to be price-competitive (as well as achieve acceptable gross profit margins at the checkout) discount supermarket suppliers will need to operate at a high scale and efficiency which means they can afford to supply at low-cost as well as make an adequate return themselves. This will probably mean that a discount supermarket will tend to buy from larger suppliers who can afford to offer low prices rather than smaller suppliers whose unit costs will be too high.

BM
Answered by Belen M. Business Studies tutor

2189 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

I really don't understand what the types of inflation are.


Assess & Compare the Advantages and Disadvantages of TQM with Quality Control.


In what way does the seasonality affect operations of a busness?


To what extent is appointing a new leader likely to be a good way to improve business performance? Justify with reference to leaders (20 marks)


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences