The end of small business

[Mosby]

Antonio’s, my kids’ favorite pizza-by-the-slice joint, will be fine. As for the rest of downtown Amherst, Mass., where I live — I’m not so sure.

Antonio’s is (or was, before March) perpetually swarming with high school and college students, local adults, and the occasional out-of-towner. It’s a hub of the Pleasant Street district, which is, by my count, home to three cafes, three bubble tea shops, more than 40 bars and restaurants, a century-old stationery store, five hair salons, two bookstores, one toy store, five boutiques, one movie theater, and a florist. Maybe Pleasant Street isn’t quite as hip as Williamsburg, Brooklyn, but it’s a great place to meet friends, browse or get ice cream. The large majority of the businesses are owned by women and members of minority groups, according to the Amherst Business Improvement District, and have fewer than 10 employees.

Eventually, the overall economy will recover, more or less. People will need to buy things and pay for services. But the coronavirus will radically reshape Main Streets across the country, accelerating changes long in the making — chain stores will replace mom-and-pop businesses, some storefronts will remain vacant, and cash that once went into local hands will be redirected to Amazon and Walmart. (Amazon chief executive Jeff Bezos owns The Washington Post.) The pandemic will reinforce and exacerbate what were already the two key economic trends of our lifetime: consolidation and inequality.

For decades, large businesses have been taking market share from small businesses, and the corporations at the top of the pyramid have been consolidating into ever-bigger megacorporations. In the 1980s, half of retail shopping took place in independent stores; today, it is less than one-quarter. From 2002 to 2017, Home Depot and Lowes almost doubled their joint share of the home-improvement retail market, from 42 to 81 percent. Even before the coronavirus struck, in 43 metropolitan areas more than half of all groceries were bought at Walmart. Those trends will be amplified: Many small businesses and weaker corporations won’t have enough capital to outlast the pandemic, and their customers will be claimed by a handful of winners with the cash and technological infrastructure necessary to survive and prosper in the new environment.

https://www.washingtonpost.com/outlook/2020/07/09/after-covid-19-giant-corporations-chains-may-be-only-ones-left

[jimfields33]

1. Our country has constantly reinvented our shopping

Remember when the milkmen delivered milk and other supplies. We are sorta returning to that but with ability to get all groceries delivered. Mom and pop stores didn’t keep up with changes and will disappear. They will return someday in a different way. We go on.

[moondust]

2. And small towns

Last edited Sun Jul 12, 2020, 01:24 PM - Edit history (1)

where megacorporations are not going to locate their stores because there aren't the population numbers/concentrations of *money* they need to grow their profits (for executives and investors). Many rural towns have been boarding up their main streets for decades, at least since the rise of Reaganomics/neoliberalism/globalization/offshoring jobs and "greed is good" in the service of Wall Street and the 1%.

ETA: The Cold War was won partly on the idea of "own your own business" and "be your own boss"--as opposed to "big government" owning everything and telling everybody what to do. Funny how things change.

[procon]

3. Impractical at the very least.

Main Street stores are small, often with the original unique architecture. The surrounding streets are usually high end properties. There's little room for expansion to build big box stores and huge parking lots, and the costs of getting the properties purchased and rebuilding the supporting infrastructure is astronomical.

A lot of small towns around my area have revamped their main streets with theaters, cosy bistros, weekend farmer's markets, kitchen outfitters and cooking classes, all kinds of DIY events from painting, pottery and other crafts. There's a yarn shop that teaches knitting and crochet, and macrome. There's a new cat cafe, a tiny micro brewery, a coffee emporium that roasts their own beans, and a bakery with wonderful artisanal breads.

Except for some banks, all of the franchised businesses are out. It's the small niche stores that cater to the whims of specialty customers that attract walk in business. It's a nice walking tour to see what's offered, browse through the various carts selling everything from snacks to personalized mugs, listen to random musicians or relax at the many small tables or benches.

Business trends will always change, and online shopping if going to wipe out many stores, large and add small that can't make the switch. But savvy entrepreneurs will still find new opportunities to make money.