Abstract

Distribution is generally a marketing channel for goods that will be determined by companies in distributing or providing related services to agents, intermediaries, wholesalers, and consumers. Distribution channels are very significant in the company's retail activities because this will affect the decisions made by the company managers. The purpose of this study is to produce a study of: distribution channels operated by hypermarts in Sidoarjo. The research is qualitative in nature. The data collection technique is literature study and field study which employs observation and interviews. The sampling technique used is purposive random sampling. The results show that the companies use direct distribution channels because the goods are sold directly to consumers.

Highlights

  • This condition has resulted in the emergence of many modern retailers in Indonesia, especially in the city of Sidoarjo

  • The results show that the companies use direct distribution channels because the goods are sold directly to consumers

  • This study investigated the phenomenon of the decline in the number of hypermarkets in Sidoarjo from the point of view of the distribution system

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Summary

Introduction

This condition has resulted in the emergence of many modern retailers in Indonesia, especially in the city of Sidoarjo. The existence of large retailers has an impact on producers, companies, and governments. Entrepreneurs in the retail sector, especially hypermarkets, try to provide products that can meet consumer needs. Goods, and services will be meaningless if they are far from the reach of consumers (Arliana Nurbaity Lubis, 2004). If the company chooses the wrong distribution channel, it will disrupt the smooth flow of goods from the company into the hands of consumers. This happens because consumers do not know the products or if they already know it but do not see them in the market, consumers will switch to other goods. Retailers selling with large sale volumes prefer to buy various items from a wholesaler rather than buying directly from the individual manufacturers (Henky Lisan Suwarno, 2006)

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