Weaker sections of society run retail shops in following ways:
1. Hawkers and Peddlers: The hawkers carry their goods in a wheeled vehicle while the peddlers carry the goods on their heads or backs.
2. Market Traders: These retailers open their shops at different places on fixed days.
3. Street Traders or Pavement Vendors: These retailers display their goods at busy street corners or pavements.
4. Cheap Jacks: These retailers generally hire a small shop in a residential colony for a temporary period.
No, they are not capable to face competition from large scale retailers. In fact there I do not have to face competition from large scale retailers because their clientele is different from them. Poor and lower middle class people buy from small retail shops while upper middle class and rich people buy from large scale retail shops. Therefore, they can manage to exist due to following advantages over large scale retail shops.
(a) A small scale retailer himself looks after his business. He is not required to employ managers or to spend on advertising, etc. Therefore, he can sell goods at lower prices.
(b) A small scale retailer can take quick decisions. He is not required to consult others.
(c) A small scale retailer can easily adjust his stocks according to the changing needs and fashions of his customers.
(d) A small scale retailer can more easily maintain secrecy of his business affairs.

Departmental Stores: "A departmental store is that type of retail institution which handles a wide variety of merchandise under one roof with the merchandise grouped into well defined departments which are centrally controlled."
"A departmental store is a large retail establishment having in the same building a number of departments each of which confines its activities to one particular branch of trade and forms a complete unit in itself."
"A departmental store carries several product lines, typically clothing, home furnishings, and household goods, where each line is operated as a separate department managed by specialist buyers or merchandisers."
Features of a departmental store are given below:
1. Central location.
2. Provision of services.
3. Corporate status.
4. Elimination of middlemen.
5. Centralised purchasing.
6. Large variety of goods.

Hawkers: A hawker moves about in residential localities. He carries his goods in a handcart or bicycle. He deals in low-priced goods of daily use. For example, combs, toys, soaps, mirrors, bangles, vegetables, fruits, ice-cream, etc.
Peddlers: A peddler also moves from house to house and sells articles of daily use. But he carries his wares on his head or on the back of a mule.
Therefore, the basic difference between the two is that hawker has a cycle or cart to carry his goods while peddler carries his goods on heads. So we can say that financially, peddler is weaker than hawker.

Major differences between wholesalers and retailers are as follows:

A retailer is a business enterprise that is engaged in the sale of goods and services directly to the ultimate consumers. It has following features
1.A retailer is the intermediary between wholesaler and the ultimate consumer. He is the last link in the chain of distribution.
2. A retailer buys goods from wholesalers and sells them in small quantities to ultimate consumers.
3. He maintains personal contact with his customers.
4. Generally, a retailer deals in a wide variety of goods.
5. He performs various marketing functions and displays goods to attract customers.
6. A retailer usually buys goods on credit and sells on cash basis.
7. Retail shops are generally situated near to customers.

Wholesalers offer a wide variety of services to manufacturers. The following are examples of such services:
(a) They facilitate large-scale production: Wholesalers purchase goods in bulk from manufacturers and sell them to retailers in small quantities for further resale. This bulk purchase made by wholesalers enables manufacturers to undertake production on a large scale without worrying about storage facilities. Thus, wholesalers facilitate large-scale production.
(b) They provide storage facilities: When wholesalers purchase goods in bulk quantities from manufacturers, they store these goods in their godowns or warehouses, reducing manufacturers' burden of finding proper storage.
(c)They collect market information: Wholesalers provide different kinds of information to manufacturers, such as information about the tastes and preferences of customers, prevailing market conditions, level of competition in the market and type of goods demanded by consumers. This, in turn, helps manufacturers to produce goods according to the market needs.

Single-line stores are small shops that deal in only one product. For example, garments or shoes. However, single-line stores offer a wide variety of the product. For instance, a single-line store that deals in garments will have a wide variety of clothes in all sizes for men, women and children.
On the other hand, specialty stores deal only in a particular type of product from a selected product line. For example, men's clothing. Such stores generally sell all the brands of the product in which they specialise. For instance, if a store specialises in men's clothing, then it will have all the brands of men's garments.
On the basis of these features, we can identify the different types of stores in a locality-whether they are single-line stores or specialty stores.
Single line stores are more frequently found in local retail markets while specialty stores are found in wholesale markets.

Wholesalers purchase goods in bulk from manufacturers, store them and distribute them to retailers in small quantities for further resale. This bulk purchase of goods enables manufacturers to undertake production on a large scale without worrying about storage facilities. By offering warehouses close to the centres of distribution, wholesalers provide what is known as 'place utility'. Wholesalers not only provide warehousing facilities such as collection, storage and protection of goods but also facilitate marketing and distribution, creating 'time utility'.

Internal trade refers to the buying and selling of goods and services within the domestic territory of a country. It is known as internal trade. In other words, the process of exchanging goods and services within the national boundaries of a country is called internal trade. Purchases of goods from a local shop, a mall, or an exhibition are all examples of internal trade. The government does not levy customs or import duties on goods and services that are produced within the country for meeting the domestic demand. 
Internal trade can be classified into the following two categories:
(a) Retail Trade: It refers to the buying and selling of goods in small quantities for final consumption.
(b) Wholesale Trade: It refers to the buying and selling of goods in bulk. i.e., the exchange of large quantities of goods meant for resale in local markets.

If there is no retailer then the consumer will not get the services provided by retailers to him. These services are as under:
1. The consumers are provided with a wide variety of products as the retailers stock a wide range of products produced by different firms.
2. The retailers provide expert advice on the merits and uses of different products and thereby educate consumers on the product.
3. As ready stock of different varieties are maintained with the retailers, the consumer is not required to maintain enough stock of the products.
4. The consumers are given the facilities of purchasing according to their purchasing power since a wide range of products are maintained with the retailers.
5. The retailer arranges home delivery of the product if necessary and renders after sale service.

The chambers interact with the government at different levels to reorient or put in place policies which reduce hindrances, increase interstate movement of goods, introduce transparency and remove multiple layers of inspection and bureaucratic hurdles. It also aims at establishing right kind of infrastructure and simplifying and harmonizing the tax structure.
(a) Transportation: The Chambers of Commerce and Industry help in many activities concerning interstate movement of goods which includes registration of vehicles, surface transport policies, construction of highways and roads.
(b) Octroi and other Local Levies: The Chambers of Commerce and Industry ensures that its imposition is not at the cost of smooth transportation and local trade.
(c) Harmonization between Sales Tax and VAT: The Chambers of Commerce and Industry plays an important role in interacting with the government to harmonize the sales tax structure in different states. A uniform sales tax is important for balanced growth as it is a source of state revenue.
(d) Marketing of Agro products and related issues: The Chambers of Commerce and Industry can intervene and interact with concerned agencies in formulating policies regarding marketing of agro-products and related issues.
(e) Weights and Measures to prevention of duplication in brands: It is necessary to protect the interests of the consumers as well as traders. They need to be enforced strictly. The Chambers of Commerce and Industry interact with the government and makes such laws which takes action against wrongdoers.
(f) Excise Duty: The Chambers of Commerce and Industry playa vital role in streamlining of excise duties.
(g) Promoting sound Infrastructure: The Chambers of Commerce and Industry in collaboration with the government takes initiative to develop a sound infrastructure.
(h) Labour Legislations: The Chambers of Commerce and Industry interacts with the government constantly on issues related to labour laws and retrenchment.

The retail outlets that sell their goods through mail are referred to as mail order houses. There is no personal contact between the buyers and the sellers in this type of trading. The trader contacts the customer through advertisement in newspaper or magazines, circulars, catalogues and price list is sent to them by post. All the information about product such as price, features, delivery terms, terms of payment etc are described in the advertisement. The customers may be asked to make full payment in advance or goods may be sent by VPP (Value Payable Post), under which goods are delivered to the customer only when he makes full payment for the same. The goods may be sent through a bank which delivers them to the customer only when he makes full payment.
Advantages of Mail Order Houses
1. They can be started with low amount of capital as no expenditure on building or other infrastructural facilities are required.
2. They do not require the services of middlemen so they are eliminated.
3. They do not extend credit facilities to the customers and thus there are no chances of bad debts.
4. They can serve people wherever postal services are available. 
5. They deliver goods at the doorstep of the customer which result in great convenience to the customers in buying the goods.
Limitations of Mail Order Houses
1. There is no personal contact between the buyers and the sellers. The buyers are not in a position to examine the products before buying.
2. They rely heavily on advertisement and other promotional activities which increases their cost of product.
3. In mail order selling after sales services are absent.

In India, Chambers of Commerce have been organised at both regional and national levels.
1. Regional Chambers of Commerce
(i) Indian Chamber of Commerce (Kolkata)
(ii) Bengal Chamber of Commerce (Kolkata)
(iii) Indian Merchants Chamber (Mumbai)
(iv) Mewari Chamber of Commerce (Mumbai)
(v) Madras Chamber of Commerce (Chennai)
(vi) Punjab, Haryana and Delhi Chambers of Commerce (New Delhi).
2. National Chambers of Commerce
(i) Federation of Indian Chambers of Commerce and Industry (FICCI)
(ii) Confederation of Indian Industry (CII)
(iii) Associated Chambers of Commerce and Industry (ASSOCHAM)
(iv) All India Organizations of Employers (AlOE)
FICCI:
The Federation of Indian Chambers of Commerce and Industry (FICCl) was established in 1926 in New Delhi. It acts as an apex central body of businessmen in India. It consists of both individual and corporate members.
Its membership consists of 50 chambers of commerce and trade associations, 200 overseas members, and 1500 associate members. Its management is vested in an executive committee. FICCI acts as a representative body of Indian business. It is a non-government, not-for-profit organization. FICCI draws its membership from the corporate sector, both private and public, including SMEs and MNCs. The chamber has an indirect membership of over 2, 50,000 companies from various regional Chambers of Commerce. It is involved in sector specific business policy consensus building, and business promotion and networking. It is headquartered in the national capital New Delhi and has presence in 11 states in India and 8 countries across the world.

Departmental stores are basically large, fixed establishments that deal in a Wide variety of products. The following points highlight the features of a departmental store.
(a) Central locations: Department stores are generally located in central areas so as to attract a large number of customers.
(b) Defined hierarchy: The management in departmental stores follows the same hierarchy that is generally followed in any joint stock company. That is, the top management consists of a board of directors, with the managing director, the general manager and the department managers under it in that order.
(c) Absence of middlemen: Departmental stores purchase goods directly from manufacturers and sell them to customers. Thus, they eliminate the role of middlemen.
(d) Centralised purchase with decentralised sales: In a departmental store, the purchases from manufacturers are handled by a single division that follows a centralised purchase policy.On the other hand, the sales are handled by the respective sections of the departmental store, which follow a decentralised policy for sales.

Itinerant traders are retailers who do not have a fixed place of operation. That is, they do not have a shop from where they sell their products. They are also known as mobile traders as they keep moving from place to place in order to sell their products. They are generally found on street sides, and they shift their place of operation in search of more customers. They usually sell low-priced and non-standard goods.
The reasons that itinerant traders survive in spite of the tough competition from large-scale retailers can be attributed to the following factors:
1. It is very easy to set up a small scale retail shop. One person with limited funds himself can start business. He need not associate other persons and no formalities are necessary.
2. A small scale retail shop can be located anywhere. It can provide goods of daily use near the place of consumers. They are not required to travel to big markets.
3. The small scale retailer knows his customers. He can attend to them personally and cater to their individual tastes and needs. Such personalised service is not available in large scale retail stores.
4. Small scale retailers cater to the masses that have limited income and can afford to buy small quantity. In India majority of the population is poor.
5. It is easy to manage and control a small sale retail shop. The owner himself is the manager. He has direct motivation to work hard and increase the efficiency of business. He takes personal interest in his business organisations.
6. Small amount of capital is required to start a small retail shop. People with small amount of funds can start retail business on a small scale.

Automatic vending machines are coin operated vending machines which work like an ATM. It is useful in selling hot beverages, milk, chocolates, newspaper, platform ticket etc.

The Federation of Indian Chambers of Commerce and Industry.

Cheap jacks.

Itinerant traders are retailers who do not have a fixed place of operation. That is, they do not have a shop from where they sell their products. They are also known as mobile traders as they keep moving from place to place in order to sell their products.

Internal trade refers to the buying and selling of goods and services within the domestic territory of a country. In other words, the process of exchanging goods and services within the national boundaries of a country is called internal trade.