www.shsph.blogspot.

com

Applied SENIOR
HIGH
Economics SCHOOL

Self-Learning
Module

Retail Trade Industry 5

662
Quarter 4
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Applied Economics
Quarter 4 – Self-Learning Module 5: Retail Trade Industry
First Edition, 2020

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Published by the Department of Education - Schools Division of Pasig City

Development Team of the Self-Learning Module

Writer: Emmanuel B. Penetrante
Editor: Edna D. Camarao, PhD
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Content/Language: Edna D. Camarao, PhD, Dennis T. Alex
Technical: Emmanuel B. Penetrante
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Management Team: Ma. Evalou Concepcion A. Agustin
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Printed in the Philippines by Department of Education – Schools Division of

Pasig City
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Applied SENIOR
HIGH

Economics
SCHOOL

Self-Learning
Module

5
Quarter 4

Retail Trade Industry

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Introductory Message

For the facilitator:

Welcome to the Senior High School – Applied Economics Self Learning Module
on Retail Trade Industry!

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
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For the learner:

Welcome to the Applied Economics Self Learning Module on Retail Trade

Industry!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.
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EXPECTATIONS

After going through this module, you are expected to:

1. define retail trade;
2. understand the importance of the retail industry on the economy; and
3. apply business principles, tools, and techniques in the retail trade business.

PRETEST

Directions: Choose the letter of the best answer and write it on a separate sheet of
paper.

1. It is a business activity associated with the sale of goods to the ultimate

customer.
A. Merchandise
B. Manufacturing
C. Retail Trade
D. Service Trade
2. It is the promotion of goods and services that are available for retail sale.
A. Merchandising
B. Manufacturing
C. Servicing
D. Trading
3. Below are the examples of retail trade business, EXCEPT.
A. Online Store
B. Sari-Sari Store
C. Motorcycle Trade
D. None of the above
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4. These are business firms engaged in offering goods and services directly to
consumers.
A. Service business
B. Retail business
C. Manufacturing business
D. None of the above

5. How many retail businesses were established and registered in 2017?

A. 101,136
B. 115,998
C. 123,487
D. None of the above

RECAP

Directions: Define the following terms.

1. Manufacturing -
______________________________________________________________________________.

2. Economies of Scale -
______________________________________________________________________________.
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LESSON

Merchandising Business

Merchandising is the promotion of goods and services that are available for
retail sale. Merchandising includes the determination of quantities, setting prices for
goods and services, creating display designs, developing marketing strategies, and
establishing discounts or coupons. Merchandising is part of the retail trade industry.

Retail Trade Industry

Retail trade is the business activity associated with the sale of goods to the
ultimate customer. It links the manufacturers and the customers of the product.
Typically retailers sell goods in small quantities to consumers for personal use, not
for resale or business use.

Typical Types of Retail Trade Business

Retail enterprises can be either independently owned and operated or part of

a "chain," a group of two or more stores whose activities are determined and
coordinated by a single management group. Stores that are part of a chain may all
be owned by a single company, but in other cases, the individual stores may be
franchises that are independently owned by a small business person.

Many different types of retail establishments exist, as noted above, the overall
industry has seen no barriers that had long separated the wide range of companies
operating under the retail umbrella. Nonetheless, retailing establishments still
generally fall into one of the following general categories:

1. Specialty Stores - These establishments typically concentrate on selling a single

type or very limited range of merchandise. Clothing stores, musical instrument
stores, sewing shops, and party supply stores all fall within this category.

2. Department Stores - These establishments are comprised of a series of

departments, each of which specializes in selling a particular grouping of products.
Under this compartmentalized arrangement, consumers go to one area of the store
to purchase tableware and another area to acquire bedding, for example.

3. Supermarkets - These retail establishments, which are primarily involved in

providing food to consumers but have increasingly ventured into other product areas
in recent years, account for the vast majority of total food-store sales in America.

4. Convenience Stores – It is a retail outlet that sells a limited range of prepared

and ready-to-eat food, bottled and fountain beverages, household staples, tobacco
products, and periodicals.
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Retail Industry in the Philippines
Retail trade is widely known as a very competitive area of commercial
endeavor. Businessmen note that many fledgling retail establishments do not survive
for more than a few years. Indeed, competition for sales has become so great that
consumers have seen a marked blurring of product lines among retailers.
Increasingly, retailers have taken to stocking a much greater variety of goods than
their basic industry classification would indicate (bookstores, for example,
increasingly stock electronic products, while other ready-to-eat food such as snacks
and biscuits, and personal hygiene products can be found in contemporary drug
stores). This development further complicates efforts to establish and maintain a
healthy presence in the market. But for the small business owner who launches a
retail store on an adequate foundation of capital, and attractive merchandise,
involvement in the trade can be rewarding on both financial and personal fulfillment
levels.

The latest Annual Survey of Philippine Business and Industry (ASPBI) showed
that a total of 101,136 establishments were engaged in wholesale and retail trade in
2017. This represents a decrease of 12.8% compared with the 115,998
establishments in 2016.

Among the industry groups, retail sale of other goods in specialized stores
reported the highest share of 30.7% to the total number of establishments for the
sector. This was followed by the retail sale of other household equipment in
specialized stores with 13.4%. Retail sale of food, beverages, and tobacco in
specialized stores came in third with 8.9%.
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ACTIVITIES

Activity 1: Name It!

Directions: Name at least five (5) retail trade businesses that operate in your area
or within Metro Manila.
1. __________________ 4. __________________

2. __________________ 5. __________________
3. __________________

Activity 2: Business Tool

Directions: From the list above, choose one (1) retail trade business and identify its
business environment and competitiveness using any of the business
tools (Environmental Scanning, SWOT Analysis, or Porter’s Five Forces
Model). Use the space below or separate sheets for your answer.
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WRAP-UP

To summarize what you have learned in the lesson, answer the following
questions:

1. What is the retail trade business?

2. What is the importance of the retail trade industry on the economy?

VALUING

Reflect on this!

“Your smile is your logo, your personality is your business card, how you leave
others feeling after an experience with you becomes your trademark.”

- Jay Danzie

POSTTEST

Directions: Read each statement carefully. Write T if the statement is correct,

otherwise write F.

____________1. A supermarket is a retail outlet that sells a limited range of prepared

and ready-to-eat food, bottled and fountain beverages, household
staples, tobacco products, and periodicals.

____________2. A specialty store is an establishment which typically concentrates on

selling a single type or very limited range of merchandise.

____________3. Retail trade is the business activity associated with the sale of goods
to the ultimate customer.

____________4. Sari-sari stores are comprised of a series of departments, each of

which specializes in selling a particular grouping of products.

____________5. Retail industry has been improved in 2017 compared in 2016.

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KEY TO CORRECTION

5. A 5. F
4. B 4. F
3. D 3. T
2. A 2. T
1. C 1. F
PRETEST POSTTEST:

References
Government of the Philippines. 2017 Annual Survey of Philippine Business and
Industry (ASPBI) - Wholesale and Retail Trade; Repair of Motor Vehicles and
Motorcycles Sector For All Establishments: Final Results. Philippine Statistics
Authority. Accessed August 16, 2020. https://psa.gov.ph/content/2017-
annual-survey-philippine-business-and-industry-aspbi-wholesale-and-retail-
trade-0

""Your Smile Is Your Logo...": Motivational Quotes for Employees, Retail Quotes,
Quotes." Pinterest. Accessed August 16, 2020.
https://www.pinterest.ph/pin/404198135290572700/.

Hayes, Adam. "How Merchandising Works." Investopedia. February 05, 2020.

Accessed August 16, 2020.
https://www.investopedia.com/terms/m/merchandising.asp.

Petersen, Lainie. "Difference Between a Grocery Store and Convenience Store."

Small Business - Chron.com. January 28, 2019. Accessed August 16, 2020.
https://smallbusiness.chron.com/difference-between-grocery-store-
convenience-store-19023.html.

"Retail Trade." Inc.com. November 30, -0001. Accessed August 16, 2020.
https://www.inc.com/encyclopedia/retail-trade.html.

"Retail Trade: Meaning, Importance of Retailers, Concepts and Examples." Toppr.

September 05, 2019. Accessed August 16, 2020.
https://www.toppr.com/guides/business-studies/internal-trade/retail-
trade/#:~:text=Retail trade is the business,for resale or business use.