Essentials, a retail store, manages its own warehouse. It also owns a manufacturing facility where it produces private-label food products. Therefore, Essentials is practicing
A) scrambled merchandising.
B) backward integration.
C) cross-selling.
D) horizontal integration.
E) forward integration.

Question

Quizplus · Accepted Answer

Backward integration arises when a retailer performs some wholesaling and manufacturing activities, such as operating warehouses or designing private-label merchandise.

Essentials, a Retail Store, Manages Its Own Warehouse