Sunfresh, the city run grocery store, in Kansas City lasted longer than I thought it would.

[the watcher]

State run things or corporate run things can't work when you can't control your people. If you let them go Mad Max it's going to fail, period. Another experiment in blissful free shit communist nirvana is having birthing problems. After years of struggle, a Kansas City Sun Fresh closes shop

 

[EdwinAMartin]

Local activists here took a cue from Detroit and started community gardens on vacant city lots and along the flood plains along the river. A old farm owned by a local black activist's family also sponsors a public garden on their property. Don't know if they sell it or eat it.

 

[Tyrion234]

Local activists here took a cue from Detroit and started community gardens on vacant city lots and along the flood plains along the river. A old farm owned by a local black activist's family also sponsors a public garden on their property. Don't know if they sell it or eat it.

Probably just looted

 

[ColonelAngus]

Closing due to crime is so racist.

Businesses should lose money so people can steal.

 

[DonGlock26]

Despite millions invested into the store, Emmet Pierson Jr., the CEO of Community Builders of Kansas City, has complained for years that rampant crime in the area has steadily run off customers.

Well, there you go. The Democrat base killed the store.

 

[EdwinAMartin]

Probably just looted

Nah, these are 25%-30% made up of real Christian black folks, and practice the Protestant work ethic, good Baptists. They have a zero tolerance for gangbangers and crack whores and whiners. One of the old deacons still has that old bumper sticker that says" No pardon needed; I proudly served" on his old Buick.

 

[ColonelAngus]

It is not difficult to calculate shrink.

You scan the inventory hitting the shelf.
You scan what is bought and paid for.

You compare the 2.

Retail shrink is usually in the 2%-3% range.

Grocery Store profit margin is usually 1%-3%…razor thin.

Excessive shrink will kill a grocery store.

 

[Independent thinker]

State run things or corporate run things can't work when you can't control your people. If you let them go Mad Max it's going to fail, period. Another experiment in blissful free shit communist nirvana is having birthing problems. After years of struggle, a Kansas City Sun Fresh closes shop

Who could have ever predicted socialism doesn't work?

 

[EdwinAMartin]

Grocery Store profit margin is usually 1%-3%…razor thin.

Well, that's not per year, it's per stock turnover, which is 10-15 times per year on average. There are other profit centers; they mostly make money by renting shelf space to the companies making the products or their distributors. and have no investment in much of the stock. And, the bread and soft drink sellers for instance stock their own products on the shelves they rent for instance.

An insider’s guide to retail shelf space fees​

The ever-growing portfolio of brands and high competition for retail shelf space allows retailers to command considerable shelf space fees. There have been numerous arguments about whether the store shelf fees charged actually enhance space allocation efficiency or encourage backroom deals between stores and manufacturers that promote monopoly. But as it stands today, these are the broad types of costs incurred by manufacturers in the retail environment:

• Slotting/listing fees: Slotting fees (or listing fee) is the amount of money a manufacturer pays a retailer to appear on the shelves. This transaction typically takes place after a range review process once the retailer is convinced about a product’s potential to generates sales and profit. Slotting fees average $1500 per store per SKU and varies based on placement in the store layout. If you consider that a range review may introduce 7-12 new SKUs, listing these products in a 1000-store retail chain nationwide has a huge impact on a CPG’s bottom line. Note that simply paying slotting fees won’t drive sales if you don’t ensure shelf availability at all times.
• Pay-to-stay fees: These fees are paid by CPGs during category reviews in the form of discounts, additional signage or complementary products to the retailer. Typically, it is offered to ensure that SKUs that have been flagged for removal from shelf, stay. This may mean that the manufacturer needs to reactivate their shopper marketing activities to spur purchase decisions and impulse purchases at shelf within the retail space.
• Display placement: Stores also charge significant fees for seasonal features and the promotional displays that appear at the end of aisles. A manufacturer may pay $350 – 500 per display per store. The fee varies depending on the product, e.g. higher for specialty, or choice of secondary placement, e.g. placing crackers far away from the snacks category (perhaps and endcap that’s closer to beverages). The main aim of this is to introduce the brand to new shoppers. So, the ROI of this fee is diluted if regular shoppers purchase the brand, or if the product was bought at the home shelf. These are all part of the decision-making process for inventory management.

A quick guide to shelf space costs

Find out more about A quick guide to shelf space costs and blogs about Retail Management Solutions at Trax Retail.

traxretail.com

... and so on. But yes, it's a tough business, and the best products do not always win.