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kin asked in Social ScienceEconomics · 10 years ago

Problems of Commercial Sector in Malls .?

I have to make a project on this topic. Can you please give me some ideas on this topic or send me some helpful links related to this topic.

1 Answer

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  • Anonymous
    10 years ago
    Favorite Answer

    There could be several problems, depending on where the mall is, and what products are being sold there.

    Number one, is location. Can consumers get to the mall, is the adequate parking or public transportation.

    Second, what is the cost of labor in that area. California labor prices would cause much higher prices in a mall there, and a mall in Texas could sell products more cheaply, because cause of labor and income taxes are lower in Texas, than California.

    That brings up taxes, which affect the overhead for mall owners and renters at the mall. OTOH, taxes also pay for basic services that help the mall stay in business.

    Without adequate local and state taxes paid, the city or state may not be able to supply good security, good courts, good roads, good public education, and the basic infrastructure that supports the mall, the owners, and the consumers that shop there.

    In my area, some malls have gone out of business due to poor security, bridges being closed, so that shoppers could not get to the mall, and also a big turn down in consumer spending, because of the poor job market and people just not having enough extra money to buy things that they would like to buy.

    Hope these ideas help.

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