In many areas, large shopping malls are taking over the spaces of small shops, forcing them to be out of business. In my opinion, this phenomenon can cause several benefits and disadvantages.
Looking from a social perspective, the replacement of small shops with large shopping malls suggests that more quality goods are being available for consumers around the region. Due to the fact that large shopping malls are owned by established local businesses or even multinational corporations, the quality control of the products is expected to increase as these organizations aim to maintain a great reputation, helping them to stay competitive in the market. This benefit is important as it can help to reduce the risk of food poisoning from consuming expired products as well as preventing the consumption of goods that do not have a clear origin.
From an economic standpoint, however, large shopping malls can induce an overall change in the price level for a variety of goods. To cover the large costs of maintenance, namely checking the quality of air conditioning systems, hygiene of floors and bathrooms, these large shopping malls may charge higher prices compared to small shops that only need to manage a significantly smaller area. This inflation, regressive in nature, can negatively impact low-income households, preventing them from buying products that were once affordable. Additionally, the closure of small shops also suggests that a group of people, originally working for these shops, will experience frictional unemployment. Many small shops are family businesses, which means that a shutdown will take away their main source of income.
In conclusion, whether the benefits of large shopping malls replacing small shops outweigh their disadvantages remains ambiguous. Opinions on the effectiveness of this phenomenon may vary depending on which facets are being taken into account.