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Essay / Research Paper Abstract
This 10 page paper discusses the impact of "megastores" and "hypermarkets" on markets in Latin America and some of the issues surrounding these giants. Bibliography lists 8 sources.
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10 pages (~225 words per page)
File: D0_HVMegast.rtf
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America and some of the issues surrounding these giants. Discussion Wal-mart of course is the pre-eminent example of a megastore; its the largest retailer in the world. Despite their low
prices and huge, "one stop shopping" structures, they are being criticized for underpaying their employees, running smaller stores out of business, and drawing shoppers from downtowns to the suburbs (they
locate their stores near freeway off-ramps), helping to speed the decay of the inner cities. At this moment, New York City is fighting hard to keep Wal-mart out. In addition,
the same issues that have brought Wal-mart under fire in the U.S. have led other countries, especially Mexico, to protest the stores. Researchers in Latin America say that the "growth
of Western-style supermarkets throughout Latin America has contributed to the demise of small and medium-sized businesses and caused an increase in unemployment" (Gatti, 1999). Argentina has been the "most affected
by the spread of hypermarkets-where bulk buying at discounted prices is a big consumer attraction-followed by Chile, Mexico and Colombia" (Gatti, 1999). While Argentina has "some control" over the megastores
and their expansion, other Latin American countries allow owners to "establish hypermarkets wherever it is commercially convenient" (Gatti, 1999). The only limit on the stores is the natural saturation of
the market; that is, they stop opening them when there are so many that they cant draw enough customers to stay in business. The saturation point has been reached in
many of the Latin American capital cities, "which have been overrun by supermarket chains" (Gatti, 1999). The next target for "the big transnationals ruling the sector" are the inland cities,
which they see as "virgin" territory (Gatti, 1999). The expansion of the megastores into the interior is "bringing social problems as small businesses are pushed aside" (Gatti, 1999). The megastores
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