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How can small shops like "Newsboy" in Sandhurst survive against large chain stores like "Tesco"?

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Introduction

How can small shops like "Newsboy" in Sandhurst survive against large chain stores like "Tesco"? My project is about how a small shop survives with large chain stores nearby. It is being done on my local small shop "Newsboy" located half a mile away from Sandhurst High Street. Map showing the location of competitive stores in Sandhurst and surrounding area. b The owners also own the angling shop beside it and are located in a small row of shops. The shop has been there long before the current owners were there. Bob and Rita opened the shop in 1986. They brought they brought 1 unit located there and later brought another unit. One was turned into the convenience store and one into the angling shop next door. The angling shop had had two previous owners and the convenience store had had one previous owner. The row of shops has a 15-bay car park in front of it. The convenience store is rather small and has small aisles; it sells a number of everyday goods including cat food, dog food, milk and bread. My coursework is on how this shop survives in competition with the big stores. I think these stores survive by not competing because they can't. The prices they offer are not as low as the supermarkets and never will be so there is no point in trying. My method of how I am going ti get my information is questionnaires. ...read more.

Middle

When he changed his approach he was actually trying to compete with the large stores. I also want to see what he meant by a change in approach. When he said change his approach he meant.................. So we see that before the opening of "Tesco" the store was doing very well. They had just invested in a new shop and they were happy with their income. Then the big chain stores moved in and ruined their prospects. Bob and Rita had already diversified into the angling store and they increased their range of stationery and greetings cards. They already had a good stock of perishables to cater for the surrounding community's emergency needs. This helped in keeping them in business because they had not specialized so they were less vulnerable to a large store moving in and offering low prices. Tesco employ many more people than Newsboy. They have lots of customers coming in and buying a large shop rather than buying a few small items. A usual family shop once a week in my house costs �100. As a family we usually spend about �15 in small shops a week. As you can see, a very dramatic difference in spending. As each family brings in more income for the shop the big stores don't need to make as much profit on each item sold. ...read more.

Conclusion

This means that the store needs to make a lot of profit on each good. The thing I have found out is that the small stores don't feel they need to compete with the large stores, as they are in different league. The large chain stores sell a large amount of goods to each person while the small stores are there strategically placed to sell a small amount of things people need. Another conclusion is that the small stores have found the margin that people are willing to pay over the prices in the large stores, for a convenient way to buy goods. The owners of this small store feel it is not worth competing because they will only lose and after all they are in completely different markets. Their prices will always be higher and there is nothing they can do about it. To finish, I have realized that stores like this may find it difficult to last forever, because in the end large stores will buy them out or be able to offer the convenience of a small shop. For example they are opening Tesco "express stores" which are at petrol stations, with a mini shop at the till. Bob said at the end of the questionnaire that he now wanted to retire. So another younger couple will move in when they leave, and they will have a go at being as successful as Bob and Rita have been. They may fail, they may do well, but small shops will always struggle in today's society. By Ben Jeater 10Y ...read more.

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