Economic Analysis: The Rise of Supermarkets and Decline of Local Shops

This essay explores the shifting preferences of shoppers from traditional high street shops to supermarkets, examining the reasons behind this trend, such as hygiene factors, higher living standards, better packaging services, and a wider variety of products. It analyzes the positive impacts, including improved living standards and infrastructure development, as well as the negative impacts, such as increased unemployment and the decline of cultural traditions and GDP growth from small businesses. The essay proposes solutions for small shopkeepers, including focusing on packaging and hygiene, adopting new technologies, increasing promotional activities, offering a vast variety of products, and continuously developing their shops to compete effectively. The conclusion emphasizes the need for small shops to adapt and innovate to counteract the dominance of supermarkets and maintain their relevance in the economy. Desklib offers more such solved assignments for students.

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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Reason for the situation...............................................................................................................1
Impact of the situational issues on economy...............................................................................1
Solution for the issues and problems..........................................................................................2
CONCLUSION................................................................................................................................3
References:.......................................................................................................................................4

INTRODUCTION
Today most of the shoppers are choosing malls and supermarkets for shopping purpose.
There are many reasons for choosing supermarkets over convenient shops like hygienic factor,
standard of living, trust issues and many others (Action for Market Towns (2005)). There are
some positive as well as negative impacts of such behaviours from shoppers on an economy. The
following report covers all such issues and their solution. This file also includes the impact of
such activities by shoppers on overall economical change.
MAIN BODY
Reason for the situation
Today most of the customers are shifting their buying preference from small high street
shops to big supermarkets. Due to this reason many small convenient shopkeepers are closing
their shops and some shopkeepers who are having good financial conditions are shifting their
shops to another big location or expand the size of their existing shops and this is happened due
to rapid change in the buying preference of customers(Barrett, Stewart and Underwood (1978)).
Few of the reasons are mentioned below for the changing behaviour of customers-
Hygienic factor- Most of the supermarkets are guaranteeing for selling hygienic products
and today when most of the diseases are spreading due to unhygienic factors then at this time
customers are more conscious about their health and without taking any risk of health they prefer
to big shopping malls over small shops (Balchin, Bull and Kieve, (1995)).
High living standards- It’s the human nature to focus on developing their living
standards. Hence, shopping from a famous supermarket instead of small high street shops is
better way to show others about one's standard of living.
Packaging services- large shopping centres are providing better packaging system of
their product rather than small shops at streets. Hence, this is also a reason for changing in
customer’s preference in buying products from big shopping centres rather than small shops.
Variety of products- Huge shopping centres are having various kind of products which
is needed by a shopper. On the other hand street shops are having limited products.
Impact of the situational issues on economy
The above mentioned situation has both positive as well as negative impact on an
economy (Ball (1994)). Positive impact includes that population of an economy are developing
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their living standards and focusing on hygienic factors which means they are getting more aware
about their rights as a customer. Another positive impact of this situation is that having more
supermarkets and big shopping centres are contributing to develop the infrastructure of the
economy and generate more income. On the other hand there are negative impacts also presented
in this situation like moving toward huge shopping centres instead of small street shops is
disadvantageous for employment rate of the country. Many street shops are giving employees to
localities that are in search of jobs. Due to shut down of such shops can make them unemployed.
On the other hand small street shops are fulfilling the needs of customers for traditional things
like traditional cloths, foods and many others which show the culture of a country (Baldock,
Mason and Wright (2004)). In case these shops get closer than there will be lack of cultural
happiness in a country. Another negative impact of this situation is that many countries including
UK is having their most of the GDP growth from these small businesses and reduction of these
shops are impacting badly upon GDP of a country as it will decline on a rapid speed.
Solution for the issues and problems
This situation can be taken in control by following few steps which are mentioned below-
By focusing on packaging and hygienic factors- It is essential for small shopkeepers to
focus on their packaging systems and gain the trust of their customers that they can also sell
hygienic products same as big shopping malls.
Adopting new technologies- It is essential for small shopkeepers to use new and
advance technologies in their shops like home deliveries of the products which is ordered by
customers on calls or any particular mobile apps, adopting online mode of payment system and
many more will help them to grow well and attracts shoppers toward their shops (Balsas (2004)).
Increase promotional activities- Many of the customers are unaware about the high
street shops near their living areas because they did not have strong promotional strategies. There
is a big humour that promoting the business always covers huge amount of money. There is
various kinds of promotional techniques which are expensive also as well as non-expensive. For
street shops which are not ready to pay high amount in their promotion activities, they can adopt
pamphlet way of promoting their business which required small amount of money to print out
the pamphlets which cover all the facilities of the shops and availability (address) and distribute
to home to home near their localities (Barrett (2012a)).
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Having vast variety of products- It is necessary for street shops to provide vast variety
of products in their shops as much as possible for them. They can have inventory to protect
themselves by the situation of shortage of products (Barrett (2012b)). Customers can ask for any
products whatever they need. Hence, having vast variety of products will help the shoppers to
purchase products from near shops instead of travelling a long route to purchase products.
Focusing continuing on the development of the shops- It is essential for small sized
street shops to focus more on the growth of their shops. Once they gain a good amount of profit
which is enough for expanding the area of their shops then they must plan to have medium sized
shops.
CONCLUSION
From the above information it is concluded that there are many reasons for the declining
of street shops like they are little bit unpopular and the customers are not aware about these
shops, their improper packaging systems, and many more. Shifting of shoppers to enjoy
shopping from street shops to huge shopping malls have bot positive as well as negative aspects
for the economy. This issue can be solved by taking few decisions by street shoppers like
improving their packaging system, adopting online mode of shopping, focusing to improve their
promotional activities and many more.
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References:
Books and Journal
Action for Market Towns (2005). Market towns healthcheck handbook. AMT: London.
Balchin, P. N., Bull, G. H. and Kieve, J. L. (1995) Urban Land Economics and Public Policy,
Macmillan:
Baldock, J., E. Mason and Wright, C. (2004). The role and vitality of secondary shopping
- a new
Ball, M. (1994) The 1980's property boom. Environment and Planning A, 26, pp. 671-695.
Balsas, C. J. L. (2004). Measuring the livability of an urban centre: an exploratory study
of key
Barrett, S., Stewart, M. and Underwood, J. (1978) The land market and development
process: a review of research and policy. Occasional Paper 2, School for Advanced
Urban Studies, University of Bristol.
Barrett, C. (2012a) High street vacancy rates could hit 50%, Financial Times, 7 Feb.
Barrett, C. (2012b) New Look mulls closing 100 stores, Financial Times, 23 Jan.
Basingstoke.
Baum, A. (1991) Property Investment Depreciation and Obsolescence. Routledge: London.
direction. National Retail Planning Forum: London.
performance indicators. Planning Practice and Research 19(1): 101-110.
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