Each new discount chain that opens can lead to 22 grocery stores closing down in the same neighborhood, a report said Thursday, supporting views that conglomerate-affiliated retail firms are bound to hurt the business of their smaller rivals.
The report from the central bank showed that the number of small discount stores and grocery stores fell 18.6 percent and 12.6 percent on average, respectively, in the five years following the establishment of a large discount store in the areas they operated in.
“The data lends support to the view that large retail firms are threatening mom-and-pop stores,” the report said.
Retail outlets, run by large conglomerates, are blamed for luring away customers from smaller shops and grocery stores, threatening the livelihoods of small-time businesses. The retailers are currently forced by law to close every other weekend in order to help their smaller counterparts stay in business.
(
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