By Andrew, Randall, Geoffrey Seth

ISBN-10: 0230513425

ISBN-13: 9780230513426

ISBN-10: 1403919100

ISBN-13: 9781403919106

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I might make only half the profit per item but because I was selling three times as much the overall profit was much greater. Simple enough. But this is really the essence of discounting … you earn far more at the cheaper retail price. In retailer language, you can lower your mark up but earn more because of the increased volume. Things began to clip along pretty good in Newport in a very short time … (Walton 1993). and to clip along even better elsewhere in the years ahead. The pricing recipe has not changed since Newport days.

If he can’t breathe life into his merged company, will Lampert simply move his pile of cash to new, more rewarding territory? The weakness in the argument seems to be that combining two weak players rarely produces one strong one. While revenues move merged Kmart to third place in the market, it is not yet by any means a secure position. Sales growth is absent, and no amount of cost cutting will of itself reverse this decline. More significantly the two parent brands, while long-established and even iconic in their heyday, have lost virtually all their one-time lustre.

Cheapest possible pricing is at the root of the policy. Sam talked about his first store in Newport Arkansas: Here’s the simple lesson … which eventually changed the way retailers sell and customers buy right across America. 20. I might make only half the profit per item but because I was selling three times as much the overall profit was much greater. Simple enough. But this is really the essence of discounting … you earn far more at the cheaper retail price. In retailer language, you can lower your mark up but earn more because of the increased volume.

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Supermarket Wars: The Future of Global Food Retailing by Andrew, Randall, Geoffrey Seth


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