There are many large stores, that are emerging on the basis of large investment from a big company, seem to encroach the domain of small shops, which sometimes bring a public outcry. Such trend seem to be more aggravated as time goes on. In this essay, I will analyze the reason of such phenomenon happening and what kind of impact it will bring to our society.

First of all, the foremost reason of prevailing large stores in many countries is that they have a advantage of an economy of scale. Most of large stores are having the purchasing power which is mainly comming from the economy of scale, which make them gain an advantage in negotiation of price for the products. Evenmore, these price competitiveness of large shops play a crucial role to drive out many small shops in the area. Thus it is safe to say that the purchasing power by taking advantage of economy of scale is the main attribute of the disappearing of many shops owned by individual.

From this analysis, we can estimate the impact that this trend will bring. The obvious outcome we can expect from this trend is that it will ultimately lead to devestating of local economy. Furthermore, the incresing number of bankrupt local shops, caused by the harsh competition with large stores, will deteriorate the employment rate. As the number of people who are relying on the local shops as their main income source increase, the whole community fall into troubles such as a higher crime rate, an incresing number of homeless people and the reduction of population.

In summary, it is evident that large stores are in a better position of competition with small shops in terms of price competitiveness. Accordingly, many shops owned by individual are in danger of defeated from the competition with large stores. Therefore, we should not allow the privately-owned shops to be bankkrupt as it is partialy linked with our community collapse.