Economic changes have surmounted to drive Bob’s into unknown territory based on their history as a mom and pop supermarket set in rural Indiana. One primary concern for Bob’s should be their local and domestic economy that has fallen deep into a recession in 2008. When Bob’s started up in 1988 they brought fourth some very substantial profits increasing sales by 40% and in their first year of operation where they experienced a first year profit that tripled the prior store owner’s profit. As the world competitors such as Walmart and Kroger have arrived in the area Bob’s has been out paced in advertising, store décor, and product selection. This new regional economic stress is causing Bob’s to continue to lose both market share and regional …show more content…
Their idea is that convenience is what Bob’s was trying to sell in a price conscience market that was focused on saving money because of the economic down turn in 2008. (Parnell, 2014). In the article, “The Changing Face of Food Retailing” the article describes the economic change that is penetrating the country described as “The rapid spread of supercenters and deep-discount food retailers illustrates Porter’s threat of the entry of new competitors, after supermarkets had been the predominant food retail format for several decades. The growth of private-label products reflects both Porter’s risk of substitute goods and the power of product buyers. In terms of technology, the analysis of the point-of-sale (POS) data generated by checkout scanners and barcodes has helped shift bargaining power from the product suppliers to the increasingly-concentrated retailers” (Senauer & Seltzer, n.d.). In spite, of national trends, and world change economic variability is inevitable in the market place to no end retailers must be proactive and change with the times to