Business StudiesCBSE Class 11 · Internal Trade

Wholesalers, Retailers and Retail Types Class 11: Itinerant, Fixed-shop, Departmental and Chain Stores

Updated 17 October 2026 · Fact-checked

Internal trade is buying and selling within a country: wholesalers buy in large quantities and sell to retailers, and retailers sell small quantities to final consumers. Retailers are itinerant (no fixed place: peddlers, market traders, street traders, cheap jacks), small fixed-shop (general stores, speciality shops) or large-scale (departmental stores and chain stores).

Wholesalers handle bulk lots for retailers; retailers sell small lots to consumers as itinerant, fixed-shop or large-scale (departmental, chain) sellers.

Illustration drawn for QuestionBuddy.

Understand Wholesalers, Retailers and Types of Retail Trade: Itinerant, Fixed-shop, Departmental and Chain Stores (CBSE 11)

Internal trade is buying and selling of goods and services within a country: no customs duty, domestic currency. Wholesale trade is in large quantities, usually from manufacturers, to retailers, industrial users or other wholesalers. Retail trade is in small quantities directly to the ultimate consumers.

Services of wholesalers. To manufacturers: facilitating large-scale production by collecting small orders into bulk orders, bearing risk of price fall, theft or spoilage, financial assistance, expert advice, help in marketing, continuity of production, and storage. To retailers: availability of goods, marketing support, credit, specialised knowledge and risk sharing.

Services of retailers. To manufacturers and wholesalers: help in distribution, personal selling, enabling large-scale operations, collecting market information and help in promotion. To consumers: regular availability near home, new product information, convenience, wide selection, after-sales service and credit to regular customers.

Itinerant retailers have no fixed place of business and give place and time utility with limited resources.

Peddlers and hawkers: carry goods on a cycle, cart or head and sell door to door.
Market traders: open shops at different places on fixed days (weekly markets).
Street traders (pavement vendors): sell at places with heavy footfall such as railway stations and bus stands.
Cheap jacks: independent temporary shops in a locality who change location when needed.

Small fixed-shop retailers have permanent establishments, more resources and stock, and better credibility: general stores, speciality shops (one type of product), street stall holders, second-hand goods shops and single-line stores (one line, many varieties).

Departmental store. A large establishment with separate departments under one roof offering a wide variety. Features: central location, many departments, services such as restaurant and parking, buying directly from producers, central purchasing and decentralised sales. Merits: attracts many customers, one-stop buying, economies of large scale. Limitations: lack of personal attention, high operating cost, risk of loss.

Chain stores (multiple shops). A network of similar retail shops owned by one firm in different places, dealing in standardised branded goods, each under a branch manager and controlled by the head office with uniform prices and cash sales. Merits: economies of scale, no middlemen, no bad debts, transfer of goods between branches, spread of risk. Limitations: limited selection, little initiative for branch managers, lack of personal touch.

Basis	Departmental store	Chain store
Location	Central place	Many places near customers
Range	Wide variety	Limited, one line
Services	Many	Few
Pricing	Not uniform	Uniform
Credit	May allow	Cash sales only
Flexibility	Less	More

Wholesalers, Retailers and Types of Retail Trade: Itinerant, Fixed-shop, Departmental and Chain Stores (CBSE 11): key facts

Trade types: wholesale in large quantities
retail in small quantities to consumers
internal trade within a country; No customs duty in internal trade.
Itinerant retailers: peddlers and hawkers
market traders
street traders
cheap jacks; No fixed place of business.
Fixed-shop retailers: general stores
speciality shops
street stalls
second-hand goods shops
single-line stores; Permanent establishments.
Large-scale retailers: departmental store, many departments under one roof | chain store, similar shops, uniform prices, cash sales; Chain stores controlled by the head office.

How to answer Wholesalers, Retailers and Types of Retail Trade: Itinerant, Fixed-shop, Departmental and Chain Stores (CBSE 11) questions

To classify a retailer, check whether the shop is fixed, how big it is and what it sells.

1If there is no fixed place, it is itinerant: look for carts, weekly markets, footfall spots or temporary shops.
2If it has a permanent shop with one type of goods, it is a speciality or single-line store; with many daily goods, a general store.
3If many departments exist under one roof, it is a departmental store.
4If similar shops under one head office sell uniform branded goods for cash, it is a chain store.
5Support the answer with one feature from the chapter.

Wholesalers, Retailers and Types of Retail Trade: Itinerant, Fixed-shop, Departmental and Chain Stores (CBSE 11) in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

The weekly haat vendor

Suppose Raman sells clothes from a stall that he sets up in a different village market each day of the week.

What type of retailer is he?

Try it first, then show the solutionSolution

He has no fixed shop and opens at different places on fixed days.
That fits a market trader.

Answer: A market trader (itinerant retailer).

Memory hook: Fixed days, moving places.

Tricks to remember Wholesalers, Retailers and Types of Retail Trade: Itinerant, Fixed-shop, Departmental and Chain Stores (CBSE 11)

Short memory aids. Say each one aloud once, then use it on a question the same day.

Pin to aeroplane
A departmental store sells almost everything under one roof.
Use it when: Departmental stores.
Cash, uniform, controlled
Chain stores: cash sales, uniform prices, head-office control.
Use it when: Chain stores.
Wholesaler bears the bulk risk
Wholesalers take delivery in bulk and carry the risk.
Use it when: Services of wholesalers.

Wholesalers, Retailers and Types of Retail Trade: Itinerant, Fixed-shop, Departmental and Chain Stores (CBSE 11): solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: Chain store feature · 1 mark · MCQBoard level

Which is a feature of chain stores?
(a) Credit sales
(b) Cash sales and uniform prices
(c) Many departments in one building
(d) A central city location only

Try it first, then show the solutionSolution

Chain stores sell standardised goods at uniform prices for cash.

Answer: (b) Cash sales and uniform prices

Example 2: Services to manufacturers · 3 marks · Short answerBoard level

State any three services of wholesalers to manufacturers. (3 marks)

Try it first, then show the solutionSolution

Facilitating large-scale production by collecting small orders into bulk orders.
Bearing risk, such as fall in prices, theft and spoilage.
Financial assistance, storage, expert advice or help in marketing (any one more).

Answer: Bulk orders, bearing risk and financial assistance (or storage/advice/marketing).

Example 3: Classify the retailer · 4 marks · Short answerHarder board level

Name the type of retailer in each case. (4 marks)
(a) A vendor pushes fruit on a cart from street to street.
(b) A trader sets up a shop on fixed days in weekly markets.
(c) A shop sells only children's clothes.
(d) A vendor sells snacks outside a railway station.
(e) A trader runs a temporary shop in a locality and moves when business falls.

Try it first, then show the solutionSolution

(a) Peddler or hawker.
(b) Market trader.
(c) Speciality shop.
(d) Street trader (pavement vendor).
(e) Cheap jack.

Answer: (a) Peddler/hawker (b) Market trader (c) Speciality shop (d) Street trader (e) Cheap jack

Example 4: Choosing a retail format · 5 marks · Case-basedHOTS / competency

Case: Gaurav's company makes shirts. It opens 40 identical shops in different cities, all under one head office, selling at the same price for cash. In the central area of one city a large store sells garments, electronics, groceries and has a restaurant and parking. (5 marks)
(i) Name the two retail formats. (2)
(ii) Compare them on pricing and credit. (2)
(iii) How do the 40 shops spread risk? (1)

Try it first, then show the solutionSolution

(i) The 40 shops are chain stores; the large store with many departments is a departmental store.
(ii) Pricing: chain stores have uniform prices across branches; departmental store prices are not uniform. Credit: chain stores sell for cash only; a departmental store may allow credit.
(iii) Risk is diffused across many branches, so a loss in one is offset by others and an unprofitable branch can be closed.

Answer: (i) Chain stores and a departmental store. (ii) Uniform prices and cash only versus non-uniform prices and credit possible. (iii) Spread across branches.

Example 5: Distribution margins · 4 marks · Short answerHarder board level

Suppose a wholesaler buys 10,000 notebooks from a factory at 20 each and sells them to retailers at 24 each; retailers sell to consumers at 30 each. Find the wholesaler's gross margin, the retailers' gross margin and the consumer's price difference over the factory price. Name two services the wholesaler gives the factory. (4 marks)

Try it first, then show the solutionSolution

Wholesaler margin = (24 - 20) x 10,000 = 40,000.
Retailers' margin = (30 - 24) x 10,000 = 60,000.
Consumer pays 30 - 20 = 10 more per notebook than the factory price, or 1,00,000 more on 10,000 notebooks (the sum of both margins).
Services to the factory: collecting bulk orders so that production can be large, and storage or bearing risk.

Answer: Wholesaler 40,000; retailers 60,000; 10 per notebook; bulk orders and storage/risk bearing

Where students lose marks in Wholesalers, Retailers and Types of Retail Trade: Itinerant, Fixed-shop, Departmental and Chain Stores (CBSE 11)

The slips examiners see most often, and what to write instead.

Mistake: Confusing the departmental store with the chain store
Mixing the features.
Wrong working
A chain store has many departments under one roof
Right working
A departmental store has many departments under one roof; a chain store is a network of similar shops
Do this: Think one roof versus many shops.
Usually costs: 1 mark
Mistake: Calling a market trader a fixed-shop retailer
Overlooking the lack of fixed place.
Wrong working
A weekly market trader is a fixed-shop retailer
Right working
He is an itinerant retailer
Do this: Check for fixed place of business.
Usually costs: 1 mark
Mistake: Writing that retailers sell in bulk
Mixing retail and wholesale.
Wrong working
Retail trade is in large quantities
Right working
Retail is in small quantities to the ultimate consumer
Do this: Retail is the final link.
Usually costs: 1 mark

Exam tips

Give one example with each type of retailer.
Use a table when comparing the departmental and chain stores.
Quote at least four services of wholesalers and retailers each, separately for producers and consumers.
Mention that internal trade carries no customs duty.

Practice questions on Wholesalers, Retailers and Types of Retail Trade: Itinerant, Fixed-shop, Departmental and Chain Stores (CBSE 11)

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
A weekly market trader is a
(a) fixed-shop retailer
(b) itinerant retailer
(c) wholesaler
(d) chain store owner
Hint
No fixed place.
Answer
(b) itinerant retailer
Q2 · 1 mark · Assertion-reasonHarder board level
Assertion (A): Itinerant retailers provide place and time utility.
Reason (R): They move from place to place carrying goods to customers.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
Hint
Where do they sell?
Answer
(a) Both A and R are true, and R is the correct explanation of A.
Q3 · 4 marks · Short answerHarder board level
Explain how a chain store's policy of uniform prices and cash sales helps it avoid bad debts and middlemen, and why its branch managers lack initiative. (4 marks)
Hint
Think of head-office control.
Answer
Cash sales mean no credit is given, so there are no bad debts. Centralised procurement from the producer eliminates middlemen. Uniform prices and policies are decided by the head office, so branch managers have little freedom to take decisions and show less initiative.
Q4 · 4 marks · Short answerHarder board level
A chain store buys 5,000 shirts directly from the producer at 300 each and sells them at 380 each; its expenses are 2,50,000. Had it bought through a wholesaler at 320 each and sold at the same price with the same expenses, what would the profit have been? Find the gain from eliminating the middleman. (4 marks)
Hint
Margin per shirt times 5,000 less expenses.
Answer
Direct: margin 380 - 300 = 80; 80 x 5,000 = 4,00,000; profit = 4,00,000 - 2,50,000 = 1,50,000. Through a wholesaler: margin 380 - 320 = 60; 60 x 5,000 = 3,00,000; profit = 3,00,000 - 2,50,000 = 50,000. Gain from eliminating the middleman = 1,50,000 - 50,000 = 1,00,000.
Q5 · 5 marks · Case-basedHOTS / competency
Case: Meena sells vegetables from a cart door to door. She now has savings of 3,00,000 and thinks of opening a permanent general store. (5 marks)
(i) Name her present retailer type and give two of its features. (2)
(ii) State two advantages of a fixed shop and one limitation of a general store compared with a departmental store. (3)
Hint
Compare resources, credibility, range.
Answer
(i) A peddler or hawker (itinerant retailer): no fixed place of business, limited resources, deals in daily-use consumer goods, sells door to door. (ii) A fixed shop has a permanent establishment with more resources and stock and better credibility. A general store stocks only daily-use products in a residential area, so it offers a narrower range than a departmental store, which offers wide variety under one roof.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.What is wholesale trade?Show answer
Buying and selling in large quantities, usually to retailers.
2.Name four itinerant retailers.Show answer
Peddlers and hawkers, market traders, street traders and cheap jacks.
3.What is a speciality shop?Show answer
A shop dealing in only one type of product.
4.Who controls the branches of a chain store?Show answer
The head office.
5.What is the pin to aeroplane idea?Show answer
A departmental store sells almost everything under one roof.

Wholesalers, Retailers and Types of Retail Trade: Itinerant, Fixed-shop, Departmental and Chain Stores (CBSE 11): frequently asked questions

Is internal trade subject to customs duty?

No; customs duty applies to external trade, though goods bear GST.

What do wholesalers do for retailers?

They keep ready stocks, give credit, share risk, support marketing and share specialised knowledge.

Do chain stores give credit?

No, they sell for cash only.