I think this will have a huge affect on the name brand businesses. For most companies, such as toothpaste and cleaning products, they only sell their products in stores such as wal-mart. Some may be sold online but shopping only hasn't yet evolved to purchasing a tube of toothpaste. These companies rely on their sales to big retail stores. If these companies stop purchasing their products and rely on selling their own some of these major organizations may end up going out of business. This would end up being a problem because once the economy picks back up consumers will need to go back to the products they enjoy. I don't believe they are switching because they don't like the name brand products, they are just switching to save money. Once they are able to afford the better product, they will want to buy it but since these retail stores will no long offer the products they want, they won't be able to purchase them.
In effect, the brand name stores might change their prices in order to compensate for the loss. It would help them keep their products in these large retail stores. Most brand name products also have high prices mainly due to the fact that they can. People are willing to buy their products at a high price because they are of better quality. So I feel that if they lowered their price even a little bit it would keep them in business and wouldn't cause a big loss. It would be in their benefit to lower their prices and hope these retail stores don't stop buying their good.
Do you think that it could be considered a monopoly since Wal-Mart would now only be selling their products in their stores?
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