Due to the development and rapid expansion of supermarkets in some countries many small, local business are unable to compete. Some people think that the closure of local business will bring about the death of local communities. To what extent do you agree?
the coexistence of large and small stores on one market
With the proliferation of supermarkets, it has been hard for single stores and local businesses to keep up to the pace of the market. Some think that this may impact adversely to the local communities; however, I think that despite having a negative impact of burgeoning business of supermarkets, mom-and-pop stores are deemed to survive. Here are my analysis on this.
Although supermarkets are back by corporate giants with best in class business acumen, a lot of time they fail to understand the local household needs. Local businessmen have acquired the knowledge while evolving their society and passing the baton through generations. This has led to building of a tacit understanding between the residents and community shop owners rendering to create an emotional connection and relationship between them. Another reason that will help these businesses survive is their proximity to the house. Supermarkets are huge in size and require large area where it can be built. This impedes them to exist near to a lot of household. Smaller shops will be in a better position when one needs to buy few items under time constraint.
Advocates of the supermarkets on the other hand argues that the freebies and discount offers given by the supermarkets are going to attract a lot of businesses. With the support of investing behemoths, they will keep offering the discounts for a longer period of time gradually killing the smaller players.
To each their own.One might assume that the boom in supermarkets is going to be lethal for the smaller community businesses, these will continue to survive the storm and will always make their place in the market.