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Originally Posted by Rathji
If you are trying to maximize profits while staying competitive, how could adding the additional cost of stolen merchandise not push prices up?
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You stopped bolding a little early. If they increase the prices, they may very well push more customers to buy at other stores instead and they'll end up making less money than they would have if they kept prices the same.
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There is a cost to running the store - facility expenses, staffing, stock, etc - that needs to be offset before a profit can be realized. If that cost is increased, due to theft (or any other reason), then the profit is reduced. If you reduce profit enough, then it doesn't make sense to even be in business, since your margins will be higher investing somewhere else.
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For a huge company like Loblaw, there will be a whole bunch of things that will happen before they shift their capital to something other than grocery stores.