Small grocery stores leaving the market

Small grocery stores leaving the market

access_time2019-11-05 12:50:20

The number of  small grocery stores has been declining  that is seen with  naked eye,  their place is taken by the major chains.  This trend is not positive given the Georgian economy’s structure where small and medium-sized businesses do not hold  a large market share.

 

Commersant  tried to find out  the reason for what is happening. Why are small stores leaving the market amid quite low level of services and an increasing number of disgruntled consumers in large chain stores?

 

The advantage of large networks, like any large business over  small ones, is a large turnover, a diverse choice. Unlike small stores, large networks receive  plastic cards.

 


The retail outlets are obliged to pay certain interest to banks for installing non-cash payment terminals. Due to a quite large amount, many small stores do not have enough money for this.

 

 The lack  of a terminal for cashless payments puts a small store in unequal conditions which loses  the wealthiest part of customers who pay with a card.

 

The Association of Young Financiers and Businessmen  (AYFB) believes that the government can  resolve this problem.

 

 

“The installment  of terminals is  not  risky for banks, it is almost 100%   safe and  they can afford to reduce interest on services. The government should introduce regulations that provide for certain benefits for small businesses when installing cashless terminals. The banks will not do this of their own free will; due to the lack of competition in the financial sector, banks can make their own rules, ” they say in the  Association.


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