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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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rehctub

go on the dole, get a Government house or get a job predicting the climate and you might find yourself better off. Now you will have to fork out 12% super for any employees so the Government can crow that its helping workers through the super profits rip off. Those who believe that you can spend your way out of debt will probably lose the super you put in for the employee anyway. It's a crazy world.
Posted by runner, Monday, 14 November 2011 5:18:23 PM
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Nah not a chance.
Tell you what get a new product line.
Not haveing you on.
You know I would not do that mate.
Tried to buy dog food?
Meat bones that kind of stuff.
Not going to be round long enough to do it myself so its yours.
Get the bones fat rubbish and truly, mix it together.
Like minced meat.
Put it in puppy sausages, no fair dinkum, I do it.
I cook mine, a bit over cook in fact mine.
In a second micro wave.
Dogs love em they last when cooked and get a bit hard, chew able.
$3.40 a kg for chicken necks about $5 for fatty dog killing bones.
This is no joke, my little beggars are hard to please but never knock it back.
Name? Doggy Road kill snags sounds good.
Posted by Belly, Monday, 14 November 2011 6:25:26 PM
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"""
When large stores like Coles or Woolworths opened for more hours, I rejoiced.
"""

Well this is online opinion I guess and mine is totally different.

When large stores like Coles or Woolworths opened for more hours, I puked!

They're a bunch of cheating, lying, thieving dogs. I'd rather spend my money in a corner store any day and I do. The small locals are on the comeback in my neck of the woods and it's a pleasure to give them my money for a smile and damn good old fashioned service. Strangely, none of them are English, all Indian, Afghan, Asian and other similar cultured people. It's like going back in time and buying from Con the fruiterer, coupola days, beaudifull :)

"""
In Canada they had a gutful of small business being priced out of existence by the mass merchants
"""

I get the feeling the yanks are pretty fed up with Walmart as well.

Bunnings is such a rip off and 90% of their stuff is cheap Chinese junk, which you can get the same thing from a local chinky store for a 20th of the price. Again with a smile.

So yeah, times are changing and the big boy's days are numbered, but for a lot more reasons than the theme of this thread. And I'm happier for it.

So you're a butcher, rehctub? Getting tough for you? Our local Chinese butchers shop is packed to the brim with people 7 days a week, 9 hours a day. People from all walks of life. I did a job for the owner a little while back, he would disagree with your opinion on the state of his market, the guys rolling in it, can't get meat in the door fast enough. And none of it is glued together and full of water like the big chains!
Posted by RawMustard, Monday, 14 November 2011 7:01:39 PM
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*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!*

Actually Hasbeen, seeing you are from the old school, best you go
and see Rehctub and buy your meat as fresh as you like.

But all is not what it appears to be, when it comes to meat science.
Eaten fresh, your meat will most likely have less flavour and be
tougher then it would be, if it was aged.

Today with MAP (modified atmosphere packaging), we can package
up a lamb, put it on a boat to the US, give it considerable shelf
life and it will taste far better then anything you bought fresh.

Its all about enzymes and their breakdown of collagen. The meat
CRC have done a heap of work on this.

In fact if you go to top restaurants, you will find "aged beef" on
the menu, especially stored for weeks, to improve the flavour.
People pay a great deal extra for it.

Most supermarket meat would be gassed one way or another. That does
not mean its a bad thing. It just might taste alot better then
it looks.
Posted by Yabby, Monday, 14 November 2011 10:12:43 PM
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It would want to taste better than it looks.

Yes Yabby, I come off the land. We used to hang our meat in a cool house, & I used to eat at the Toby Tavern in Sydney in another life. Still let me assure you, you'll get a damn site better & better tasting meat from our butcher, than from one of the big ones any where near us.

It's not as bad as it used to be, when we only had one big one in 30Km. Now we have 4 plus an Aldi, within 15Km, & hasn't that gingered up their quality.

Just as well, it's still pretty poor, but not as bad as it was.
Posted by Hasbeen, Tuesday, 15 November 2011 12:14:52 AM
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I thought small business supported a free market. Loved a bit of competition, enjoyed the cut and thrust of the market place. If they can't compete, considering all the lurks and perks they enjoy, tax avoidance, cash in hand, etc etc well let them go the way of the Dodo.
Posted by Paul1405, Friday, 18 November 2011 6:45:08 PM
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tubmans quote..""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.""

mate the increased costs your workers cop
its not just you paying double for privatise/services..and govt levies

we bleed just like you
only you got more to bleed

but in the end lifes about what we did..or tried to do
not what we hoped or planned to have done

but enough of our difference

has small busyness had its day
of course not..[if you own your shop..
ie not giving wasted rent monies to capitalist money changers..you can underrcut even big w]..if you grow your own product..your even more ahead

if you sell direct..and entertain the people
give them fairity..the world becomes a better place

worker like to be part of a co=operative
are only to glad to be fair to you and their mates

mate they love you
get over hurting them

were all in this together!
Posted by one under god, Saturday, 19 November 2011 7:33:06 AM
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