South Korea’s Small and Medium Business Administration (SMBA) has said that it considering combining its members under a single, government-backed franchise.
The news comes in response to the increasing pressure on smaller, independent retailers from the spread of large discount supermarkets.
By uniting, the smaller shops hope to reduce costs through the collective purchasing of products and also lower their spending on marketing efforts, SMBA officials said.
The government-baked small shops would use a single name and one “common uniform”, SMBA said.
A chain headquarters would be established in each region to manage the collective purchasing of goods, which will provide up to 50% of the items sold at the government-brand supermarkets.

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