Particularly in California, stores like Ralphs or Albertsons are shutting down. Advertisements or such can't be the only reason for the pricy goods and "shut-downs". I now have to drive an extra mile to my favorite grocer. What is really going on?
2006-11-14 06:04:40 · 2 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Profit margins for grocery stores are extrmely low in comparison to most retailers. The mark-up on regualr foods really isn't that high. Typically 1 to 2 %. It is really hard to make ends meet this way. Not to mention it is hard for the little guy to compete with the bigs guys out there and offer competitive prices. I am from PA and the same is happeneing here.
2006-11-14 06:16:00 · answer #1 · answered by Dalhey 2 · 1⤊ 0⤋
A whole mile??? Really that is not much. The most likely reason for a store to close is that there is not enough business in the area. They have to make a profit as does any business. So they either give up & close, or move to a busier area so they can make enough profit to stay in business.
2006-11-14 14:15:40 · answer #2 · answered by Andastra 3 · 0⤊ 1⤋