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