Small-scale retailing is characteristic of many developing and emerging economies. It has been argued that in the course of economic development a retail environment will be transformed into a more efficient system by fewer but larger retailers that often are gigantic global players. However, in many societies, small retailers have other functions in addition to retailing. As shown in a sample of small retailers in the People’s Republic of China, many retailers started their businesses due to unemployment or retirement. In countries such as China where the social security safety network is lacking, starting a small-scale business is one way to earn a living. The benefits of the modernization on retailing notwithstanding, this paper discusses how economic development and efficiencies of scale in retailing may destroy a well-functioning system that provides income for less-fortunate individuals. The findings are based on observations and interviews conducted in 1993–2010 in Guilin, China.
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