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The Forum > General Discussion > Has small retail had its day?

Has small retail had its day?

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With the continued uncontrolled domination of the big two, combined with the increasing costs associated with operating a small retail business, is the end in sight for these family dominated businesses.

Having been in business myself for the best part of 23 years, I have seen gross profits rise from some 30% to 50%, while also seeing net profits fall below 10% in many cases, all due to added competition and increased costs.

Small margins play into the hands of big business as they have the capital to diversify, therefore spreading the risk, something that small business simply can not do.

Now we have the likes of Costco entering the market, something our governments encourage as they call it, competition, however, in reality, it is the begining of the end for many.

We have already seen the demise of the local owned hardware, replaced by the likes of bunnings and now masters.

Fruit shops in shopping centers have been squeezed out, replaced with mobile phone shops or $2 shops.

Are we all happy with this trend?
Posted by rehctub, Monday, 14 November 2011 5:39:14 AM
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It's called evolution, if you don't change with the times you will demise. Spare a thought for the many corner stores where you went for your broken biscuits in days gone by, now they put them in wrapping so you can not see what you have bought. Happy or not you can-not discriminate because they sell cheaper than you do. The consumer is not confident to spend money with world affairs as they are at the moment. All retailers big and small are in the same leaking boat. It lets you know us AU islanders we are part of the world.
Posted by 579, Monday, 14 November 2011 7:46:54 AM
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I'm happy with any trend that makes goods cheaper, and makes shopping faster Rehctub.

Back in the 'good ol' days', one only went to the corner store if you were desperate for goods after hours. There was often little selection, and far inflated prices in these stores.

When large stores like Coles or Woolworths opened for more hours, I rejoiced.
Here in my town, they are open 7 days a week, but we still have viable general small stores open for after-hours needs, and they serve as breakfast and lunch bars, or newsagents as well.

So everyone has to move with the times, and keep up with the changing, busier life of consumers these days.
I like online shopping too, as long as I already know exactly the goods and brands I want.
Posted by Suseonline, Monday, 14 November 2011 2:58:02 PM
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I've told you before Rectub, the world is changing, especially
with the advent of the internet.Ignore those changes at your
peril.

The customer is king, in a globalised world. The days of
Westfield charging 1000$ m2 plus 10% of turnover, are numbered.

For a while now, marketing costs have far outweighed the cost
of producing things. Westfield don't have the monopoly anymore,
people can go shopping online, where businesses don't have those
ridiculous overheads.

Some small businesses will die in the process, until commercial
real estate owners accept the fact that their buildings are not
worth what they thought anymore, or their shops will stand empty.

Try a home delivery meat service, where you are only paying 100 m2
rather then a thousand. Plenty of online small businesses are
thriving.
Posted by Yabby, Monday, 14 November 2011 3:17:26 PM
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Yes the world is changing. Hooray!

Instead of fresh meat cut by the butcher while you were there, we can get "convenient" meat, that has sat for a week in a lovely plastic pack. Hooray!

Yes it is changing. We can get "fresh" fruit & vegetables, straight out of 6 or 12 months in controlled atmosphere storage. Hooray!

Ever wondered why your apples go off in a couple of days, rather than a couple of weeks, or are you too young to know they ever did keep for weeks.

Well You're welcome to it, & do watch what you pay for all that imported chinese food, once the big 2 have got rid of the competition, at least you will know you deserve everything you get.

Oh, & I'm just lazy enough to do it myself, so the blame is mine as well.
Posted by Hasbeen, Monday, 14 November 2011 3:50:44 PM
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Suseonline:>>So everyone has to move with the times, and keep up with the changing, busier life of consumers these days.<<

Suseonline the consumer can speed up or go to idle, my concern is that in either mode their cash goes to Woolies or Westfarmers, our groceries, our meat, our veg, our clothing, our hardware, our liquor, and our petrol soon, all from two suppliers, suppliers who are now producers and pseudo manufacturers of many lines they retail.

In Canada they had a gutful of small business being priced out of existence by the mass merchants and actively enforced legislation that protects small business. The Canadian Competition Bureau overviews everything from antitrust to predatory pricing, and unlike here where a mass merchant simply discounts meat and veg until the little guy is gone they are limited to time frames on “special pricing” and if they want to continue they must have the “special pricing” nationally. That shortened them up and within a year small businesses were coming back.

Regrettably here in Australia we have an organization set up by big business to defend their right to monopolize, it’s called the ACCC, the people have never won a case against the ACCC, but the ACCC has won many against the cheating lying plumbers, builders, small manufacturers and petty retailers who bleed us dry.
Posted by sonofgloin, Monday, 14 November 2011 5:04:38 PM
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