In some countries where the model of the classical trade sector prevailed, in which there were many small stores, including specialized for specific product and service offerings serving local markets of various customer segments, the emergence of large-scale stores, discount stores, supermarkets and hypermarkets proved to be a threat to existing small local stores.
Many small shops ceased to function. This could have an adverse effect on the local labor market. How is this rated in your countries?
Are the confederations developing the development of small local stores developed? Are these small local stores affiliated, economic chambers are set up to defend this trade segment in your countries?
Do small trade companies and small stores in your countries are threatened by developing large-scale stores through hypermarkets?
Please, answer, comments. I invite you to the discussion.
In Indonesia, modern stores, including modern minimarkets, supermarkets, or hypermarkets are the real threat for traditional stores. Besides their attractiveness to shopping (such as range of products, location, or longer business hours), it is also caused by the shifting trend to shopping among people, especially younger ages. They try to minimize human interaction, pay cashless, and make modern stores as a lifestyle. Eventhough modern market are allowed to operate nationally, due to higher autonomy among local government create some city/ regions deny modern markets. Others try to protect traditional business through stricter regulation, such as minimum distance from local markets, location requirements, length business hours, etc. On the other hand, some local stores make innovation through enhance their personal touch to consumers, provide delivery service, and diversify their products.
It is very obvious to be threatened by larger company that is why either small companies are merging or continuously changing their business.
I agree with @Anjay kumar Mishra. Large companies are able to achieve low profitability over their revenues. In other words, they offer their products and services at lower prices. This is a threat to small businesses, whether they are shops or traders.
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