In Wednesday's class we discussed a very interesting concept called Format Blurring. Format Blurring is the idea that retailers are adopting new departments that do not necessarily belong in their specific format. For example, Target now sells fresh produce and groceries, consequently format blurring with Super markets. Now people only need to go to one place to get groceries, household items, electronics, clothes,...etc.
Many people believe that Walmart is ruining our economy because it provides almost everything a consumer may need at unbeatable prices. Walmart is a power house in the retail industry and it is causing small privately owned specialty stores to go out of business. Small local grocery stores can't necessarily compete with Walmart's convenience, reliability, and low prices. Many people think this is negatively effecting our economy because the money isn't circulating around many different retailers, it is simply all going to Walmart. However, other people believe that Walmart can positively effect our economy. The money is still being spent on the items, and at lower prices, giving consumers the ability to spend their money in other places. It is also saving busy people a lot of time and gas, because they no longer need to travel all over to accumulate their necessities. So this brings up the debate, is Format Blurring negatively or positively effecting our economy? I guess we will have to wait and see.
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