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The presence of bigger retail outlets have brought new business opportunities and moved the retailing industry in Malaysian to greater heights. Since these bigger outlets affect the existing retailers, a study was undertaken to assess the potential impact of the proposed development of a departmental store on existing small business retailers in Bandar Perda, Malaysia. The analysis was based primarily on the perceptions and expressed opinions of the sampled retailers and entrepreneurs in the catchments area of the proposed development of the departmental store. From the analysis, there would be short-term adverse impact on most retail outlets and the degree of the impact would be determined by the type of retail business. The study also raised several recommendations for the existing small retailers to employ in order to stay competitive.
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