Mom and Pop Shops free essay sample

Professor James Meeze January 19, 2013 Based on my research paper and reading the information, I am going to choose how Wal-Mart is taking down mom-and-pop shops and destroying them by leaving downtown barren and empty. I am going to prove it does have some effect on small business, but also it has to do with our economy. I plan on the information and graphs I found by researching my information about how the big companies do take over some small business. I will provide a power point presentation in my research paper to also show you more information about my research paper. There is no question that Wal-Mart does cause some mom-and-pop shops to fail. However, those failures are entirely compensated for by the entry of other new small business. I am also going to prove that it’s fifty fifty. Large Corporation sometimes destroy some mom-and-pop shops. Also I have facts they don’t destroy all the small business. We will write a custom essay sample on Mom and Pop Shops or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The article states shopping center have developers to lesson mom-and-pop shops in new centers in U. S. Regency. It has reduced the amount of small shop space and including new development. It also states that the regency is having a harder time filling empty spaces with new mom-and-pop tenants and franchises than in the past. As stated in a recent article from the Neighborhood Retail Alliance, because when Wal-Mart enters a town undeniable harm happens to small and medium sized entrepreneurs. Not only does the company sell numerous types of goods, its’ sure to grow, it often prices them below cost in order to drive out local competition. These new developments have come at a time when everyday low prices which is the growth model that Wal-Mart necessarily wants to pursue long term. In recent years many of its competition have close up shop because they could not complete with Wal-Mart prices. There were shops of all kind like bakeries, shoe stores, pharmacies. Then Wal-Mart comes along. The fear that the giant corporation would come to small town and squash mom-and-pop operation turned out to be real. American consumers find the Bentonville (AR), based discounter which topped $226 billion in 2001. As local stores have continued to close, Wal-Mart has grown to 2,780 outlets in the U. S. alone. They explore widely views that Wal-Mart causes significant harm to mom-and-pop business. They did a test to see if Wal-Mart had been harmful to small business. They examine alternative measures and empirical techniques for robustness. Their studies results show that Wal-Mart had no significant long run impact on the overall size and profitability of small business in the United States. New studies find that Wal-Mart does not negatively impact local small business. Ranking as one of American’s largest corporations, reading the article they state Home Depot and Lowes put local stores out of business. If that was true Ace and True Value, also Building 19, they still exist thru United States. There finding are the larger retailers such as Ames department stores, Sears, and Kmart that lose business with the arrivals of new Wal-Mart stores, while smaller retailers are not affected to some extent. Wal-Mart has low prices because of our economy that’s why it’s hard for their competitors to bet their prices. Remember Bradlees, Ames, Anne Hope, Building Square, all based in New England. They have similar formats like Wal-Mart and Target, but they are all out of business now. By reading this article my findings are Wal-Mart is looking to open three hundred fifty new express convenience stores a year in U. S. cities and rural areas threatening small independent retailers. The largest retailer is downsizing its new stores to fit smaller city. But smaller retailers and traditional â€Å"mom-and-pop† stores could suffer from the move as consumers, for convenience and lower prices. This author believes it put pressure on mom-and-pop because Wal-Mart carries most of the basics, even groceries cheaper than mom-and-pop shops. Wal-Mart is proven to be cheaper; they can shop and get milk or their toasters breaks or even pick up DVDs cheap. Most mom-and-pop shops do not carry toasters or DVDs, and if they do they are higher in price. Will Wal-Mart take over the world? There were shops of all kinds like bakeries, shoe stores, pharmacies, and then come Wal-Mart. The mom-and-pop shops fear that giant all-in-one stores would come to small towns and squash mom-and-pop operations, based on discounter which topped two hundred twenty six billion in 2001, irresistible for its convenience, and low prices. Wal-Mart being such a huge buyer, it is such a huge seller that it can offer customers the lowest prices and make up the difference in volume. According to this article mom-and-pop shops are gone, regional chains are gone national retailers are thinning out. â€Å"We’re left with only the very big players at the top now that Wal-Mart has chewed right up the food chain. By reading all the articles, there are facts that Wal-Mart does and does not have effects on small mom-and-pop shops. The articles I read about Wal-Mart, Home Depot, Lowes has forced the mom-and-pop shops to close. For example the two big hardware stores have not put Ace, or even True Value out of business, they still exist throughout the United States. The only thing I can see is that people are misled; Wal-Mart has low prices. I believe it has to do with our economy. Also remember Bradlees, Building Square, Ames, Anne Hope, all based in New England. They are like Wal-Mart and Target, but they are all out of business now. It defiantly gives you something to think about. Reference â€Å"Study prove it: Wal-Mart super stores kill of local small business; Steve Barrision; 2013 â€Å"Bloomberg BusinessWeek; November 26, 2002 New Wal-Mart stores put large retailers out of business, mom-and-pop stores less affected; Persky J amp; Merriman D; 2012 â€Å"Mom-and-Pop closing shop;’ (vol 29 Issue 6, pg. 7-7); Business Source Elite; June 2008 â€Å"Break the monopoly of mom-and-pop shop-put a Wal-Mart in Hyde Park†; Adam Gaffin; 2/14/10 â€Å"Impact of Wal-Mart on Self-Employment and sm all Establishment in the United States†; (vol 46 Issue 4, pg. 676-695); Sobel, Russell s. amp; Dean, Andrea M â€Å"Is this the end of local States? Mighty Wal-Mart plans to build 350 minis ‘express’ shops a year to take on smaller retailers;† Daily Mail Reporter; June 2011