LNF Cymru Literacy and numeracy for Wales

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VCSE Retail and Customer Service

VCSE Retail and Customer Service is mainly a literacy qualification: learners read a case study and customer evidence such as reviews and live chat transcripts, write a report, staff guidance and customer replies in the right tone, research a real retailer, write promotional copy and deliver a pitch with questions. Numeracy is light and centres on data, covering customer satisfaction and response time data, primary research and pricing strategies, with no calculations stated anywhere in the specification. The single biggest thing Key Stage 3 should build is writing for a real reader: turning evidence into clear, well-organised reports, guidance and customer messages in a tone that suits the audience.

Awarding body
WJEC
Level
Level 1 and Level 2
First taught
September 2027
Amount of literacy work
High
Amount of numeracy work
Low
Specification
Open the specification
Step before
Foundation Retail and Customer Service, Entry Level and Level 1
How this qualification is assessed
  • Unit 1: Introduction to the Retail and Customer Service Sector: Sector test 1 hour, 20%, 50 marks, set and marked by WJEC, paper or on screen, objective and short answer questions in two sections of 25 marks
  • Unit 2: Developing Customer Service Skills: External non-examination assessment 6 hours 30 minutes, 20%, 60 marks (30 for AO3 and 30 for AO4), set and marked by WJEC, tasks based on a case study
  • Unit 3: Retail Marketing and Promotion: Non-examination assessment 19 hours plus 2 hours supervised research, 60%, 90 marks (15 for AO3 and 75 for AO4), set by WJEC, marked by the centre and externally moderated by WJEC

Skills that use Financial literacy

  1. Pricing strategies, discounts and competitor prices

    Assessed: In coursework (non-examination assessment, NEA)

    Learners must understand the factors in pricing a product, such as competitor prices, the economy and the cost of production, and pricing strategies including competitive, dynamic, penetration, promotional, psychological and skimming. Sales promotions such as discounts and buy one get one free also appear, and competitor and pricing analysis is named as a source for the Retail Business Analysis Report.

    Numeracy: Financial literacy, Calculation, Strategic competence, Logical reasoning

    Getting pupils ready

    Year 7
    Pupils compare the price of the same snack in three local shops, including a multipack, and decide which is best value.
    Year 8
    Pupils work out sale prices after 10%, 20% and 25% discounts and decide whether 'buy one get one free' or '30% off' is the better deal.
    Year 9
    Pupils set a price for a new product from its cost and two competitor prices, then explain whether a £4.99 psychological price or a lower penetration price suits their target market.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit 3, Section 3.1.4, page 36; Unit 3, Section 3.1.5, page 36; Unit 3, Section 3.1.1, page 35

    “the factors to consider when pricing a product”
    Progression step 3
    • I can make comparisons between prices and understand which is best value for money.

    • I can manage money, compare costs from different retailers and determine what can be bought within a given budget.

    • I can calculate percentage quantities based on 10%, e.g. 20%, 5%, 15%.

    Progression step 4
    • I can make informed decisions relating to discounts and special offers.

    • I can calculate a percentage increase or decrease.

    Progression step 5
    • I can recognise, model and apply the underlying mathematical structures and ideas within problems, in order to formulate and solve them.

    • I can justify my procedures, predictions and conjectures.

    • I can use multipliers as an efficient method when working with percentages, e.g. multiply by 1.2 to increase an amount by 20%.

  2. Understanding costs, VAT, inflation and profit in retail

    Assessed: In the exam

    Unit 1 requires learners to understand economic factors that change consumer behaviour, such as income, employment levels, inflation, tax and VAT, and operating costs such as rent, business rates, energy and labour, and to know that retail businesses aim to make a profit. These are tested as knowledge in the Unit 1 sector test, and no calculations are stated.

    Numeracy: Financial literacy, Conceptual understanding

    Getting pupils ready

    Year 7
    Pupils work out the profit or loss on a class cake sale from the cost of ingredients and the money taken.
    Year 8
    Pupils list the monthly costs of running a small shop in their town, such as rent, energy and wages, and work out how much it must take to cover them.
    Year 9
    Pupils add 20% VAT to a set of shop prices and discuss how rising prices or energy costs might change what local customers buy.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit 1, Section 1.1.3, page 15; Unit 1, Section 1.1.1, page 14

    “inflation, tax and Value Added Tax (VAT)”
    Progression step 3
    • I can use profit and loss in buying and selling calculations.

    • I can realise that budgeting is important.

    Progression step 4
    • I can carry out calculations relating to VAT, saving and borrowing.

    • I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.

    Progression step 5
    • I can understand and calculate income tax and understand the implications of taxation.

    • I can explain and express concepts, and find examples (or non-examples).

Good to know

Links with other qualifications

Appendix A (pages 50 and 51) maps listening, reading and writing across all three units but speaking only to 1.3.3, all of Unit 2 and 3.3.2, and maps numeracy to mathematical proficiency, number (3.1.4 only) and statistics, with nothing for geometry or measurement. Report writing from data and pricing overlap with GCSE Business, and the complaint handling and bilingual customer service content overlaps with the VCSE in Hospitality and Catering.

Source: WJEC Level 1/Level 2 VCSE Retail and Customer Service specification, approved by Qualifications Wales, teaching from September 2027, for award from 2029 (© WJEC CBAC Ltd 2026).