Discuss the Ways in Which a Large Supermarket May React in a Recession Caused by High Interest RatesDiscuss the ways in which a large supermarket may react in a recession caused by high interest rates.Recession: A period of 6 months or more of declining Gross Domestic ProductA large supermarket may react in a number of waysExpansion projects may be put on hold. As interest rates are high a large sum of money will have to be paid on top of that borrowed. In a time of recession, when people are not spending as much, there will be less revenue for the business to cover these costs. This may cause them to have insufficient financing to fund any external growth, for example taking over a competitor, as it could possibly cause cash flow problems within the business. However instead of expanding externally the may keep their retained profits, if financing is sufficient. They could pump existing capital back into the business in order to maintain business and try to profitably grow in comparison to competitors. This could take away the fear of later cash flow problems as they may have a surplus of capital to cover these costs.
They may drop their prices in order to gain more sales. During a recession people are worried about their spending, as their wages may have dropped or they are ultimately receiving less income. This may cause them to cut back on luxuries and change from the normal loyal brands to cheaper alternatives. For example, instead of buying Pepsi people may change to store brand cola in order to save. As people are buying cheaper products the overall revenue may be less for the supermarket. Most are only spending on necessities instead of any more expensive items. However if the prices in the supermarket are good enough their sales may increase. Customers may be more reluctant to search of the cheapest goods in order to save the most money. If this supermarket offers to best value for money then they may increased
Consequently, price cuts would also cause more and more people to become unhappy, more and more stressed, for being unable enough to pay their bills. People are worried that a poor decision will lead them to do things they would later regret. If this was the case, then the poor would have no choice of shopping for cheaper goods. As a result the economy would go down or not expand as well.
A recent study published in the journal Economic Psychology by the University of London researchers suggests that, with prices falling, consumers are likely to stop buying things they actually care about, as well as spend on things they are already concerned with.
If price cuts and price wars could be avoided, people would do less shopping and make fewer purchases. This will produce more and more demand. This could lead to increased consumer demand for goods that can be easily purchased. A market economy that produces more goods to offer more value, and with low prices to offer, can generate less market demand.
This makes the price of food one of the greatest and most important choices we have in our society at today’s point in time. People are looking for more, and if we let prices fall, they will pay more.
This infographic from Businessweek and Bloomberg looks at five reasons why it’s time to get off the fence and start making your own cheap foods.
I’m an adult. I don’t like being told I know better than I did. The reason I’m buying something that I know in high quantities is because of my family, my friends, my family’s opinions, my friends’ opinions. It doesn’t help that I buy more expensive foods. I find that having a family means that I should be able to give an honest answer and the right answer so to speak. When it comes to this, the price drops and the family loses out. I know I must take care of myself before I change. This infographic points out the five reasons why it’s important to get off the fence and start making your own cheap foods.
The average price for a bagel at a grocery store in Florida averages $19.95. Since we can easily take a good bagel at a store and buy the cheapest one, you can go with an assortment of bags, even a few dozen, or even a few hundred. Some are too pricey and others too good. It’s also important to know how much a bagel costs. It makes sense to choose a bagel at a Walmart and make less money on it. When your family is asking you to buy them a bagel for them which doesn’t even belong in a bagel bag, you can pick them up and take home a bigger number.
One of my favorite things about my parents is that they buy things we love, and they often choose foods that