The city obviously made a strategic mistake by increasing the cost of doing business so much.
Not really. Due to Walmart doing so well there I am pretty sure Target will take their spot. No one cares if its Walmart or Target. To be honest Target is actually a step up. Its going to be a PR loss for Walmart as well.
And Target can better handle increases in labor costs because they charge higher prices. Of course, the customers will have to pay more, but who cares about them?
People dont mind paying slightly higher prices for better quality. I know I dont. Seems like Walmart has you guys right were they want you.
That statement is false on its face. If it were true, Walmart would be fighting to survive against Target. It is not. The truth is that a LOT of people will take cheap crap just to save a few bucks. THAT'S the truth.
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What's **true** is that lots of people are working for starvation wages and don't have any option but to take the cheapest crap they can get by with.
People don't buy cheap because they LIKE cheap but because they have no other choice.
People buy groceries at Wal-Mart because everything is cheaper than at other stores ( but Wal-Mart is still making humongous profits which tells us something about the grocery store chains ). A box of cereal can easily be $1.00 cheaper at Wal-Mart than at Fry's / Kroger / other store and when they are only making minimum wage that makes their minimum wage stretch further.
We need to keep in mind how much American business lies to it's customers.
Grocery stores claim to operate on 1% profit --- why would anyone invest millions of dollars to build a store and all that equipment for 1% when they can put it in CD's and get more than that with little risk?
THEY WOULDN'T and THEY DON'T
Since they charge quite a bit more than Wal-Mart obviously they must be making more per item than Wal-Mart is. Sure some of them are union and pay better wages and benefits but those labor expenses are a very small percentage of their income. Wages and bennies for a chain unionized grocery store probably eat up 2 or 3 cents out of that dollar difference on a box of cereal.
I prefer to shop at the other stores but when it comes to some things like boxes of cereal or anything where the quality is exactly the same because it is the same box / can / package I go to Wal-Mart ... for produce / meat / deli / baked goods I < never > buy those at Wal-Mart I go to Fry's / Kroger usually because they have the best in this area. Even though I can afford to buy it all at Fry's ( and used to ) and prefer to deal with unionized stores, there is a point where their excessive charges are too much and I can't justify giving them $75 a week or more than it would cost at Wal-Mart.
But those excessive charges wind up in management's pockets with million dollar bonuses and they don't deserve the money.