Quote:
Originally Posted by tubemonkey
Small stores go out of business because people want them to. No one puts a gun to their heads and forces them to shop at the big box store that just moved in.
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No, the gun is not pointed at their heads. The carrot on a stick makes people shop at larger stores.
People shop where they believe they can get a better price. A bigger store with greater purchasing power will offer goods at a better price, conduct more sales and offer a greater range.
Smaller stores cannot do that, or if they try, the impact is less.
Big department store and supermarket chains have seen the end of the small neighbourhood corner store and smaller specialist stores such as electrical retailers.
This is how Gerry Harvey's Harvey Norman electrical and furniture stores have impacted on local businesses here in Australia. He moves into a local area and squeezes out smaller electrical and furniture stores.
Here, Woolworths and Coles supermarkets have a virtual stranglehold. Why? because they offer all that mentioned above.