Essendon Biz Buzz Hardware Can't Compete With Big Business

June 22, 2011 by  

Another popular suburban shop in Essendon North is going out of business, as Biz Buzz Hardware is forced to close its doors after 47 years of operation. The rise of the mega hardware store chains, combined with supermarkets and other big businesses moving into the space, has made it a challenging and highly competitive environment for small businesses like Biz Buzz.

So much has changed in the last half century, and when the shop first opened there was hardly any competition around. In the early days, there was also a clear specialisation for each of the local stores. For example, the supermarket would only sell food while the hardware shop would only sell hardware.

However, all this has changed and today many small businesses are finding it tough to compete with the bulk chains which can undercut them on price. At its peak, Biz Buzz operated outlets in Reservoir, Preston, Thornbury and Niddrie, but all of these have now closed. Essendon North’s outlet was the final enduring store in the chain, but even this outlet has gone out of business.

The damage being done to local communities by some of the big chain stores is real. There is a ripple effect each time a small business like Biz Buzz Hardware has to shut its doors. When the Thornbury village outlet closed, for example, the surrounding small businesses also took a hit.

Small businesses, such as Biz Buzz Hardware, simply can't compete against the endless supply of money that these large chains can wield to their advantage. Large chains are able to offer consumers bulk discounts, which allow them to always undercut smaller shops on price, and large chains can also spend much more on promotion, like catalog printing, as well.