In the past years, individuals shifted their location of shopping from small retail stores to shopping centres, resulting in the shutdown of many local shops. In my opinion, this trend is affecting negatively the economy in various ways.
To begin with, small shops closing down have a big influence on the unemployment rates of a country. In other words, when retail stores are unable to compete with big malls for not having the enough resources, they are obliged to dismiss all their employees. As a result, job opportunities are harder to find, and competition is the work field is higher, especially for individuals who are above years old. For example, newly graduates have it better chance to find a new job vacancy because companies prefer to have youth in their teams due to their adaptability skills, leaving the individuals within the age range above 40 unemployed.
Secondly, large centres can control the market price wise when there is no more competition. To put it differently, it is commonly known that owning a mall or a shop within a centre can lead to high expenses. Consequently, when competition gets lower large shops increases the prices of their goods in order to start gaining profits. For instance, business researchers showed that a very common strategy new business use is to cut their profits to Zero if necessary to attract new customers where they wait for their competitors to close to start increasing the prices gradually.
In conclusion, large centres taking over the market, forcing retailers to close their businesses affect the economy in both increases of prices and unemployment rates.
In the past years, individuals shifted their location of shopping from
small
retail stores to shopping
centres
, resulting in the shutdown of
many
local
shops
. In my opinion, this trend is affecting
negatively
the economy in various ways.
To
begin
with,
small
shops
closing down have a
big
influence on the unemployment rates of a country.
In other words
, when retail stores are unable to compete with
big
malls for not having the
enough
resources, they
are obliged
to dismiss all their employees.
As a result
, job opportunities are harder to find, and competition is the work field is higher,
especially
for individuals who are above years
old
.
For example
,
newly
graduates have it better chance to find a new job vacancy
because
companies
prefer to have youth in their teams due to their adaptability
skills
, leaving the individuals within the age range above 40 unemployed.
Secondly
, large
centres
can control the market
price
wise when there is no more competition. To put it
differently
, it is
commonly
known that owning a mall or a
shop
within a
centre
can lead to high expenses.
Consequently
, when competition
gets
lower large
shops
increases the
prices
of their
goods
in order to
start
gaining profits.
For instance
, business researchers
showed
that a
very
common strategy new business
use
is to
cut
their profits to Zero if necessary to attract new customers where they wait for their competitors to close to
start
increasing the
prices
gradually
.
In conclusion
, large
centres
taking over the market, forcing retailers to close their businesses affect the economy in both increases of
prices
and unemployment rates.