Question

Midwest Grocery Company Mr. Kent, owner of Midwest Grocery Company, is considering building a new store one block from his present site. Midwest Grocery Company is not affiliated with any grocery chain organization. It has been operating from a leased building in a neighborhood shopping center that contains a drug store, doctors' offices, a restaurant, and a barber shop. The center is four years old and is located near a new upper middle-class residential area. Sufficient parking space has been provided in the center's parking lot. Auto traffic appears to flow smoothly in and out of the lot. Mr. Kent is not satisfied with his present weekly sales of $41,000. He believes that sales could be increased if he built a larger store. The present store contains 4,700 square feet of selling space in a brick building of 7,000 square feet. The new outlet would contain 10,200 square feet of selling space in a 15,000 square foot building. Mr. Kent can renew the lease on the old building for the next five years at the present rate of $15,000 per year. The cost of the land for the new location is $200,000; the construction cost is estimated to be $500,000. Midwest Grocery Company's trading area is believed to be centered in the 10 square block area surrounding the store. The nearest competitive store is run by a small, independent grocer who operates in a 2,500 square foot building with no off-street parking. The main competitor is a supermarket 15 blocks away. However, another chain supermarket is building a new outlet 10 blocks away from the present Midwest Grocery Company location.

Discussion Question:
i) What action do you recommend Mr. Kent take? Why?​

Answer 1

Answer:

the question is tooo longgg

Explanation:

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