Traditionally it’s been a way for big businesses to bully local municipalities into giving them free security via local cops, tax incentives, etc by claiming that they’re losing so much money to shoplifters that they have no choice but to close shop unless something changes (which is always bullshit, they’re printing money). Walmart is infamous for doing this to small towns after they annihilate any local competition through lower prices from their economy of scale.
Honestly I don’t think a one-stop-shop can be unassailable. Having a depth/variety of products is important, not just for consumer’s sensibilities but also for being able to cover all the use cases. A Walmart might be most of a grocery and pharmacy and toy store, and half of a garden and hardware and auto parts and home furnishings store, but it will never be all of all these things (and perhaps not even 100% of any of these things). The logistics just becomes prohibitive.
The businesses that are best to start with are the ones where online shopping is unsatisfactory.
I think it’s simply that they want to close stores, and just saying it’s because store has lower profits than their target will mean they have to field a bunch of calls and letter campaigns from grumpy people trying to tell them their neighborhood is important, while saying it’s crime will get those same people to blame anyone else.
I always thought the “aaah, shoplifting!” panic was just ceos faking it to try to garner sympathy lol. Good to feel vindicated.
Traditionally it’s been a way for big businesses to bully local municipalities into giving them free security via local cops, tax incentives, etc by claiming that they’re losing so much money to shoplifters that they have no choice but to close shop unless something changes (which is always bullshit, they’re printing money). Walmart is infamous for doing this to small towns after they annihilate any local competition through lower prices from their economy of scale.
Funny you should bring up Walmart, because Walmart is the second biggest reason why I hate the “just start your own business” cliche.
Walmart was weaponized to make that impossible.
Honestly I don’t think a one-stop-shop can be unassailable. Having a depth/variety of products is important, not just for consumer’s sensibilities but also for being able to cover all the use cases. A Walmart might be most of a grocery and pharmacy and toy store, and half of a garden and hardware and auto parts and home furnishings store, but it will never be all of all these things (and perhaps not even 100% of any of these things). The logistics just becomes prohibitive.
The businesses that are best to start with are the ones where online shopping is unsatisfactory.
I think it’s simply that they want to close stores, and just saying it’s because store has lower profits than their target will mean they have to field a bunch of calls and letter campaigns from grumpy people trying to tell them their neighborhood is important, while saying it’s crime will get those same people to blame anyone else.
I always figured the playbook was something like:
Congratulations, you’ve successfully shifted costs of protecting your property on the public!