In short, Jo has a shop that sells electrical goods made by Pepper plc, a large-scale business. Nearby, many people are unemployed so they can't really buy new stuff. However, they might be able to pay to repair their old stuff.
What exactly is the relevance?
Economies of scale is, from what I vaguely remember from introductory micreoceonomics (if I remembered, I guess I wouldn't be here) and understand on Investopedia, an advantage that comes from more production namely that if more of a particular product is produced, but only up to a certain point, any particular unit would cost less.
This is because fixed costs per unit decrease with more units, again, only up to a certain point.
Note that for some reason we are talking about Jo's shop while we are asked about Pepper plc.
For reference, here is the whole story: