THE IMPACTS OF THE CONCENTRATION OF LARGE RETAIL CHAINS ON SMALL BUSINESSES IN SÃO LUÍS/MA

Abstract

The market concentration of large supermarket chains has become a growing concern for small businesses, especially in the food sector, where small entrepreneurs face significant challenges to remain competitive. This study aims to analyze the impact of the presence of large supermarket chains on small businesses in São Luís/MA. The methodology adopted was qualitative, with a descriptive and explanatory approach. Data was collected using questionnaires applied to 20 small local traders. The results indicate that most traders recognize the difficulties in competing with the big chains, especially about low prices, promotions and the variety of products, as well as the low demand from customers. The conclusion is that, despite the difficulties imposed by market concentration, small businesses in São Luís/MA can improve their competitiveness by investing in niche strategies, such as offering exclusive products and differentiated service, as well as seeking financial support and public policies to strengthen their performance in the local market.