Big box stores are large stores with many supply chains. They do have some special features for example; they usually have a large freestanding rectangular generated single floor structure built on a concrete lab. Big stores can be broadly classified into three categories that are general merchandisers. For example Wall mart and target which stock a wide variety of product like Vegetables, electronics, furniture, Category killers for example Home depot, Barriers and nobles which specializes in stocking a particular goods for example Electronics, or Furniture .
and the Down Costa which sells merchandisers goods to customers at a discount if they buy goods in large quantities. Big box stores usually sell a variety of product from toys, electronics to clothing and groceries and even furniture sporting goods and automobiles supplies. Mom and Pop stores are single operated business with few or no employees other than the owners, when judged by the number it usually below ten employees. These are the oldest type of business in the world. Discussion
Instead of competing with the mom and pop stores big box stores often try to drive them out by employing large number of workers along with lower prices when they start operating in a new place. They also come up with lofty plan to the community, which include creating a lot of job opportunities this make people to neglect the mom and pop stores and to shop in the big boxes stores. Big box stores also tend to concentrate in certain area once they have concentrated a certain place; they reduce their competition and making it virtually impossible for their smaller competitors like the mom and pop stores to thrive in that place.
This lowers the profit of the local mom and pop supermarket and sometimes end up even killing the mom and pop stores. When big boxes comes into an area they encourage the growth of the mom and pop stores in that the mom and pop can buy product from them in bulk at a discounted rate and then sell them in the neighbor hood to their customers, at higher price hence making profit. Its customers who run away from the mom and pop stores when a big box store is opened hence are killing them (Basker, 2007).
According to Ressel (2004) he found out that Wal – Mart store (big box store) had no impact on the overall performance of a small business sector (mom and pop stores) which is just as big and vibrant as it was 30years ago without Wal – Mart (big box store) Big box store also encourage the growth of mom and pop stores, by providing all types of goods to the mom, and pop even those goods which could not be economically viable for the mom and pop store to stock considering their cost and the cost of transporting them from the point of manufacturing will be so high incase the they were to transport the goods themselves.
Big box stores do create a lot of jobs as they claim, but the very fact that they operate efficiently clearly indicate they wipe out more jobs as they produce. The salary they give their employees is lesser than the money, which someone would have received if he had been operating is own mom and pop store. Big box stores entry to the market makes many jobs to disappear because they do source their product from the lowest bidder, they can also decide to import product from outside the country making many local industries to die as well as the mom and pop stores.
Big box stores tend to put money fast and there is usually lack of personable, lack of meeting objectives, or to try to impress them by ensuring that they get maximum profit. This makes them not to care so much to their customers and they do have bad customer services compared to mom and pop stores . that a business matters to them. Usually the aim is to meet the shareholders needs. In Mom and Pop stores, the owner might know you after a while because you are in direct contact with him; this will make the customers’ shopping conservation as while as a buying spree.
Employees of mom and pop stores usually offer better customer service in small shop, they are revolving around the customer and they usually have a personal touch , thus being able to get an answer to your quiz and problem, there is comfort in knowing that your business is needed and that your need as a customer is cared about. Hence, the impact of big box stores in terms if service provision to the customer is not felt as search. Conclusion Big box stores are not killing the mom and pop stores al rather the big stores are killing themselves. While the mom and pop are killed by its customer.
When a big box store start operating in the community customer of the mom and pop store stop shopping in them and go to the big box because of the cheap prices available and the availability of wide range of product in the same stores. Big box super market increase the quality of the services offered at mom and pop stores by introducing a stiff competition. Many mom and pop stores do try to compete with big box hence promoting the quality of services offered by the mom and pop. Big box stores do kill themselves because when one big box store see another thriving well in a particular area they also go up their and open their branch.
Reference: Dean, A. M, and Sob, R. S (2007), Economic Inquiry, Has Wal-Mart buried Mom and Pop? The impact of Wall mart on self-employment and small establishment in United States Anselin, L. (1988). Spation Econometric methods and model; The Netherlands Klueler academic publisher: Dordritch Basker, E. (2007): The causes and consequence of Wal–Mart growth forthcoming journal of Economic. Perspective Stone, K. E. (1995): Impact of Wal-Mart stores and other mass merchandisers in Lowa 1983- 1993, Economic development review, Issue number 1995, page 60-70