Retailers and wholesalers

All the firms can be grouped into wholesalers and retailers. The figure below shows how they fit into the various stages in the produc­tion of chocolate.

The wholesaler buys goods in bulk from producers and sells them in small quantities to retailers. In doing so he helps production, relieves manu­facturers and retailers of the risk of a fall in demand, e.g. fashion changes. The holding of stocks is in itself a valuable economic function evening out prices resulting from temporary changes in demand and supply.

Do you know these words?

Retailer	розничный торговец
A retaileris a tradesman who sells by retail	Розничный торговец – это торговец товаром в розницу
wholesaler	оптовый торговец
to fit	подходить, соответствовать
to buy (bought, bought)	покупать
to sell (sold, sold)	продавать
in bulk	навалом, в массе
quantity	количество
to relieve smb of smth	освобождать кого-либо отчего-либо
supply	предложение
supplies	запасы
to hold (held, held)	держать, проводить
stocks	запасы
temporary	временный

6.Read these groups of words and translate them into Russian:

to sell – seller – sale – sales – salesman,

wholesale – wholesales – wholesale business – wholesale price – wholesale seller – wholesaler,

retail business – retail price – retail dealer.

7.Combine two sentences using and in doing so, as in the ex­ample:

The wholesaler buys goods in bulk. It helps production. →

The wholesaler buys goods in bulk and in doingso he helps production.

1) The wholesaler buys goods in bulk. It relieves the manufacturer of various risks.

2) The wholesaler sells goods in small quantities to retailers. It helps retail business.

3) The wholesaler sells goods in small quantities to retailers. It re­lieves the retailer of various risks.

Have another look at the text and...

8.Write down a few short sentences defining the term whole­saler and translate them into Russian.

9.Compare your definition with the following one:

Wholesalers – intermediaries between producers and retailers. The main functions of wholesalers are breaking bulk (buying in large packages and selling in smaller ones), warehousing, delivery, and the provision of credit.

10.Translate the text into Russian:

Newspaper item to translate: H & M market conditions improving

Hennes & Mauritz, the international fashion retailer, yesterday reported stronger-than-expected sales growth in July and said market conditions were improving in its US stores.

Sales in July were 18 per cent above the same month a year ear­lier, and, although the company didn't release like-for-like figures, it said that it had only increased the number of stores by 10 per cent during the period.

The company also said it did not expect any material impact from the floods in Europe – Austria and Germany account for more than a third of sales – which had closed some stores.

Leif Persson, chief financial officer, said the sales increase had been broadly the same across most countries. The group has more than 800 stores in Europe and the US.

In the past year, the company has worked to cut inventories to reduce the need for discounted sales. 'We have probably had the right garments in the shops and we have been able to display them well. We have not had a lot of old garments around and this gives the new item a better visibility, Mr Persson said.

H & M entered the US market in March 2000 and has struggled with costs and lower-than-expected sales. Mr Persson said growth in the first half had been 'a little bit slower' than in the rest of the group, but that it was 'getting better all the time'.

Earlier this year, the company said it was halving the pace of its US expansion in order to focus on existing stores. It now has 34 in the US and is expected to open another eight or nine before the end of the year.

Sagra Maceira de Rosen, analyst at JP Morgan, said: H & M typically outperforms higher-priced rivals in weak market conditions as shoppers seek cheaper purchases.

11.Write an essay on one of these topics using the material of the lesson and other English/Russian sources:

1) Market schema and conditions,

2) Growing production and clusters,

3) Producing and selling cars.

TEST

1. Choose the correct variant:

1. TheUSA is... а union оf 50 states.

А) а constitutional republic;

В) а presidential republic;

С) а federal republic;

D) а constitutional monarchy;

Е) а republic;

Тhе USA consists оf....

А) 49 states and the state of the Hawaii Islands;

В) 50 states and the District of Columbia;

С) 49 states and the District of Columbia;

D) 51 states;

Е) 15 states.

3. The population оf the United States is over 250 million people, including тоге than 22 million...

А) Europeans;

В) Spaniards;

С) Hispanics;

D) Italians;

Е) Africans.

4. Though mainly... in origin, Americans аге derived from nearly all races and nations.

А) European and Indian;

В) Spanish and European;

С) European and African;

D) English and Spanish;

Е) African and Russian.

5. English is... language

А) the official and predominant;

В) the official and preferred;

С) the first minority and preferred;

D) the first minority;

Е) the second official.