Many high street shops have gone out of business in recent years. Why do you think this has happened? Is it a positive or negative development?

Many leading street stores have gone out of business nowadays. There are numerous reasons why

this

is happening. I will explain why

this

has happened and whether

this

development will have good or bad outcomes.

Firstly

, I think that so many high street shops have closed due to the rise of many colossal corporations and franchises. Those colossal companies are too strong for the local stores to compete with.

For instance

, in the clothing industry, mainstream franchises have monopolised the market. The reason is that the bigger the company is, the bigger the number of products they produce is, and by making more, each piece costs less to manufacture.

Therefore

, colossal companies can sell the same product at a lower price to tackle the competition. The bankruptcy of the local stores have and will be a negative development. Since so many shops have closed, many have lost their job and become unemployed.

Additionally

, the monopolisation of the market always works against the consumer.

For instance

, now that a few giant corporations have dominated the garment industry, nothing stops them from raising their prices unreasonably high since there is no competition to stop them.

As a result

, consumers would pay for the same product way more. In conclusion, unable to compete with the mainstream intercontinental companies, smaller shops are closing, resulting in the rise of unemployment, which mainly ruins the working class and makes their life more unstable.