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PEARSON (PEARSON)
Business 2010 QCF
Unit 29 - Understanding Retailing
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Unit 29 - M2/D1 Kojar Ahmed
M2/D1
In this report i will be investigating distribution channels and how they are used by
businesses like John Lewis and Tesco. I will also distinguish the differences in distribution
channels when it comes to sectors such as food and clothing. These sectors will vary slightly
because they both require a different amount of care and both differ in terms of use by the
consumer. There is also certain legislation in place when it comes to the distribution of food.
I will be investigating two main businesses, these are John Lewis and Tesco. I have chosen
these businesses because i believe they do a good job of representing their respective field,
such as clothing and consumable goods. John Lewis is a relatively high class store that
specializes in luxury brands and sells a variety of different items, such as technology,
clothing and footwear etc. Tesco is different in that it sells grocery items such as food,
although they also sell a small selection of tech and clothing.
The diagram above shows three different types of distribution channels that are used by a
retailer such as John Lewis. The first is selling directly to consumers, this is done when a
business or individual personally makes a product without a middleman and then sells it to
the consumer. The second distribution channel is when the producer or manufacturer
supplies a retailer with their products, which then get sold to the consumer through that
retailer. The last distribution channel showcases when a manufacturer sells a large amount
or a batch of their products to a wholesaler, a retailer then buys these products from the
wholesaler and sells it to the consumer.
John Lewis gets their products from a variety of different sources, as they sell a variety of
different products. For example, they may receive high-end clothing items off the
manufacturer themselves, whereas they may receive tech products from a supplier who has
bought them off a producer. Some of the products sold in store are also John Lewis’ own
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