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**Hokimjers** · 05-25-2012, 04:48 PM

Im still not sure if this is a good or a bad thing to happen. I suppose prices will finally come down a bit in the supermarkts, when Walmart sets foot here, which is good for the customers, margins that are ridiculously high will come to a more reasonable level but what will happen with the small guys, that have one or two supermarkts (example Amigo in SD) or the colmados who dont have the power to negotiate better prices from their suppliers and dont have to scale to survive on lower margins. The spread in price between buying close to your house in a colmado or minimarket for some daily needs or buying at the supermarkt 10 minutes driving will become to big and those small business will lose business.

Just what happened in Holland and many other developed countries where 'mom and pop' stores had to close because of the 'supermarket wars' that took place in the last 2 decennia.

I know that with current margins with only one small supermarket (size Hola in SD) you can make very good money, but this might change with Walmart changing the retail environment.

05-25-2012, 04:48 PM	#12
Hokimjers Join Date Oct 2005 Posts 378 Senior Member	Im still not sure if this is a good or a bad thing to happen. I suppose prices will finally come down a bit in the supermarkts, when Walmart sets foot here, which is good for the customers, margins that are ridiculously high will come to a more reasonable level but what will happen with the small guys, that have one or two supermarkts (example Amigo in SD) or the colmados who dont have the power to negotiate better prices from their suppliers and dont have to scale to survive on lower margins. The spread in price between buying close to your house in a colmado or minimarket for some daily needs or buying at the supermarkt 10 minutes driving will become to big and those small business will lose business. Just what happened in Holland and many other developed countries where 'mom and pop' stores had to close because of the 'supermarket wars' that took place in the last 2 decennia. I know that with current margins with only one small supermarket (size Hola in SD) you can make very good money, but this might change with Walmart changing the retail environment.
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