Due to the development and rapid expansion of supermarket in some countries, many small, local business are unable to compete. Some people think that the closure of local business will bring about the death of local communities. To what extent do you agree or disagree? Give reasons for your answer and include any relevant examples from your own knowledge or experience.

Since the advent of 20th century, we have seen a number of prominent supermarket brands dominating the retail market. With the expansion of

such

brands to tier-1 and tier-2 cities many people believe that, it can lead to the closure of many local

business

' and, ultimately lead to the end of local communities. I agree with

this

argument, and in

this

essay I will put forth my views with supporting examples. There are a lot of people who believe that, large supermarkets can increase

competition

in a region, and

this

will mean consumers will have a better choice of products at reasonable rates.

This

is because big supermarket brands buy products in bulk from the suppliers and play the volume game, unlike the local mom and pop stores. Due to

this

reason they are able to keep the price low and pass on the benefits to the customer.

For example

, it has been estimated that, Walmart buys close to 200 tonnes of diary products each year,

such

large volume purchase helps them keep the prices at least 20% lower than their local

competition

.

However

, it is a well know fact that, with the entry of large volume retail players like Walmart many of the small

business

in local communities are not able to compete and going bankrupt.

This

is because, some of these mom and pop stores cannot bring down the margins on products like their

competition

, since it will affect their

business

.

For example

, based on the research conducted by a leading consulting firm it's been found that once Walmart starts operation in a town, 50% of the local

business

close down in the region within one year.

Such

closures have an adverse effect on local communities in terms of loss of livelihood and jobs To sum up, I believe, local players in smaller markets will not be able to sustain the

business

due to

competition

from larger players, and

this

ultimately lead to destruction of local communities.