I'm okay with what you describe, but anticompetitive behaviour isn't good for the consumer in the long run. It goes like this;fishinajar wrote:This is the "natural" order of things. Old smaller outdated centres are pushed out by larger new centres. But relax, boutique shops or apartment/townhouses will quickly snaffue any unwanted Mainstreet sites. Its called redevelopment, sometimes this happens quickly and noticably, sometimes its a gradual progression. I for one am a fan of it.Faulkick wrote:One thing that worries me, is that once again Woolworths are going to run another business out of.. Business - the IGA that is across the road is going to lose a LOT of it's sales, and even the Foodland up the top of Smith street (Collinswood Foodland, on NE Road) is going to lose a decent percentage of it's business.
1. 'Largechain' move into area, sends spies out to record the local prices and offers heavy discounts below them.
2. Smaller shops try to keep up, but since Largechain is selling at below cost most of the time and using its cash reserves to support it, the smaller shops either reinvent themselves or more often close shop.
3. After the opposition has been 'cleansed' from the area, Largechain is able to raise prices to whatever they wish -- and they do such offering only a few token specials in their advertising.
4. Since they are the only act in town, they also squeeze their supply chain to gain a better margin in the supply direction. This means poorer quality produce.
5. Largechain sit back and reap the profit from both sides of the supply and distribution equation, whist consumers suffer from poor produce at inflated prices and suppliers find it hard to make ends meet.
Competition and a free media is required to make the capitalist system work. Since we have little of either we are screwed.