A-Z Grocery Company is well known for offering quality grocery products at the lowest prices in the market. When the company applied for a zoning change to build a new store in a middle-class neighborhood, several members of the city council objected because the company has no stores in low-income neighborhoods, where they argue the low prices are needed most. The company contends that it cannot operate profitably in these neighborhoods because of higher security and operating costs.
Please respond to the following:
• Determine the reasons low-cost retailers should or should not be required to locate near low-income customers?
• Compose suggestions that you would give the city council to attract low-cost retailers to locate near low-income customers?