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You don’t think they will be replaced by huge chains that are able to weather the poor economy?

• trebligdivad 6y ago
  The huge chains aren't doing much better at the moment; they're hunkering down and closing lots of shops.
• graeme 6y ago
  There’s no magic in a huge chain. If locations don’t make money, they close them. Space tends to go to places with a profitable use.
  • mc32 6y ago
    Exactly. Witness Lord & Taylor or it’s parent company. Or Starbucks having to close down shops. A closed shop is a closed shop even if the parent co survives.
    • dominotw 6y ago
      cheesecake factory
  • WillPostForFood 6y ago
    Chains have many advantages over small businesses that give them more durability during downturns. They have deep pockets, and greater ability to borrow. The location today is unprofitable, but they can afford to look out a year and decide to eat losses, expecting to make it up. Small businesses, especially retail, are much more susceptible to cash flow disruption. They also have economies of scale that let them run at higher margins, so they often will be losing less during tough times because they are spending less. You can see it in action in almost any trendy neighborhood. Each downturn kills some small shops, and chains survive. A unique shopping district in 2007 now starts looking like an outdoor Westfield Shopping center. Is the Apple store in Brooklyn closing down because it isn't profitable today? They can sit on the lease for two years with zero revenue if they want. Meanwhile the boutique denim shop or tea house is already out of business 2 months ago.
    • TheCoelacanth 6y ago
      Chains also have the ability to leverage themselves much more than a small business can. We saw a lot of heavily leveraged chains going bankrupt within a month or two of the start of the lockdowns.
• tonyedgecombe 6y ago
  A lot of the big chains have been struggling in the UK. This started way before the thing came along.