Fight to grab a market pie between big and small is verybase of nature and history. However; who paramount who, shall always dependupon the legal, economic, social, environmental, political, and psychologicalneeds of nation and their consumers. Therefore, it is imperative to know,besides this rivalry between these two, Consumers always paramount and enjoythe status of being the decision maker. As I discussed in my last article "Tailof Retail" [1]about the hold and power of customers.


In this article, I will bring up my own experience to thereaders, how these giant stores are snatching the bread butter of small stores,but in return also contributing to the GDP of country by creating employmentopportunities and family shopping under one roof. At one side, Small retailersare giving a customized service and personal touch to the products, other sidebig retailers are throwing facilities to customers considering all with fairtreatment to new and frequent customers.


I try to explain in tabular form to get the fair idea of twostrong contenders.


Giant Stores

Small Street Stores

Vast sprawling halls filled with arranged merchandise stuffed in very systematic manner, to attract the customers to buy at least something.

A small hall/room like a size of drawing room/bedroom with unarranged merchandise stuffed as per the convenience of seller.

Popping up sales tag writing was /before and now prices

Only few selected merchandise tag with discounts or else depends on the favor offered to customers as per their frequency.

Customers are free to choose anything, anytime, as much quantity as want to buy.

Customers have very limited access to merchandise, always presented as per the request made for.

Equal treatment to all customers buying $1 to $1000/.

Treatment as per their buying capability and past buying frequency and loyalty. No fair treatment policy.

Equal discounts and offers to all customers, irrespective to their visits to the store.

Treatment as per their personal relationships, Little extra discounts to frequent and loyal buyers.

Products with all brands and sizes are available

Products with limited brands and feasible sizes are available.

No home delivery clause in their business.

Sometimes may provide considering past relationship.

No bargains possible pay as tagged.

Very much in nature of this scale of business, Always charge less than the tagged price.


Above are the features of theirservices/range/scale/relationship with customers. Since, we are emphasizing onthe imperativeness of Giant stores with Small stores and their Strategies togain the business. I try to highlight the positive and negative aftermaths ofGiant stores to economy


 

Let us talk about the positive features of Giant Stores


  • Their structure itself make the place more develop, it will come up lots of freebees, sanitation facilities, civic facilities and govt. subsidies
  • Employment creator, it will stop the brain drain migration, not only from the country also concentration from small town to mega metro cities, Good opportunity for students, part time employees etc.
  • One Stop family buying. It caters more scope for values and social gatherings.
  • Raise the standard of living of the town/small city.
  • Raise the value of real estate.
  • Encourage and attracts the banks, financial institutions, Schools, Universities, Business associations to start up their branches, ultimately more employment and endow with good standard of living.
  • Encourage easy buying with reward points; cash back offers and credit cards.
  • Update the whole town and let them get the chance to taste the new products, which were the sovereignty of mega towns and metro cities.
  • Ultimately, it grossly contributes to the GDP of country and help to fight with unemployment, under development, poverty and play a role of socially responsible organization.


Every benefit comes with shortcomings. Every perfection has hidden defects. Let us discuss.


  • Impact of Govt. subsidies and freebees shall always back up to Giant stores, much more effectively than the infrastructure of town or Suburbs.
  • Surely, without any doubt for creation of employment, but 75-80% jobs entail part time positions. Apparently, Employees shall get half of their salaries of what they normally receive.
  • Shut down of local businesses like-grocery shops, clothing shops, convenient shops, hardware goods shops, vegetables and fruit sellers stalls, bakery shops, meat shops, ice cream shops, toys shops etc. Hence, we cannot even count how many people shall be unemployed and lose their bread and butter. Consumers shall move to big, convenient, attractive, competitive, under one roof shopping. Giant Stores shall buy goods at wholesale lower prices and sell them at 200-300% higher margins to direct sellers. Any consumer enters the store or even drop near by the store end up something or at least one unit of merchandise.
  • GDP in terms of quantity, surely be effective and rise up, show up economic growth. Nevertheless their will be no economic development in terms of unemployment and poverty which will be soaring high due shut down of local businesses and merchants.
  • Offering cash back offers, rewards point, attractive clearance sales or deals; Consumers shall tend to buy more than their budget. Apparently, end up with deficit household budgeting. However, one side more spending shall thrive to the money circulation in the economy. On the other side, excessive spending ends up with a severe recession for the town/city.
  • Act of Red tapes, bureaucracy and political pressures shall make this store a monopolistic market.


Henceforth a nation, their economy, consumers, cities need to open up their eyes to unveil the concept of misrepresentation of facts reiterated by Big stores/giant companies. Every free freebee comes up with exploitation of nations land, labor, and economy. A nation needs to do a strategic, comparative, contemplative and cost benefit analysis before inviting any giant business to their land, Nations citizens are an utmost important asset to the economy, protecting their sovereignty is foremost responsibility of their authorities.


About the Author


The author is student of Post Graduate in International Business at George Brown College, Canada.


The author expresses his views on Giant Retail Stores vs. Small Street Stores; Here 'I' refers to him.