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Do you have a source that retail companies follow economic theory versus profit maximization? In a capitalist system, companies try to maximize profit. They usu

Do you have a source that retail companies follow economic theory versus profit maximization? In a capitalist system, companies try to maximize profit. They usually go into cartel or copycat mode doing the least they can to compete and increase profit. One thing many do is have a self-checkout to cut labor while otherwise running the same way. In the real world, that means the prices and level of service will be the same except for your bad, checkout experience you get so somebody might make a bonus for cutting staff or increasing profit. Capitalism 101. The funny thing is you all come up with all this stuff that has no connection to what the companies offering self-checkout think. For them, it's much more local kind of reasoning featuring middle managers with incentives to think about.

gizmo686 7y ago
These are publicly traded companies. We do not need to guess what they are doing. Walmart has a profit margin of 1.62% https://www.macrotrends.net/stocks/charts/WMT/walmart/net-profit-margin https://www.macrotrends.net/stocks/charts/WMT/walmart/net-pr... Target: 3.96% https://www.macrotrends.net/stocks/charts/TGT/target/net-profit-margin https://www.macrotrends.net/stocks/charts/TGT/target/net-pro... BJs: 1.13% https://www.macrotrends.net/stocks/charts/BJ/bjs-wholesale-club-holdings/net-profit-margin https://www.macrotrends.net/stocks/charts/BJ/bjs-wholesale-c... For reference: Alphabet: 19.71% https://www.macrotrends.net/stocks/charts/GOOG/alphabet/net-profit-margin https://www.macrotrends.net/stocks/charts/GOOG/alphabet/net-... Microsoft: 31.18% https://www.macrotrends.net/stocks/charts/MSFT/microsoft/net-profit-margin https://www.macrotrends.net/stocks/charts/MSFT/microsoft/net... McDonalds: 28.19% https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/net-profit-margin https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/net-...
- lozenge 7y ago
  Now McDonalds is a company which clearly is introducing self checkout to raise their margins, but I don't see any hand wringing about it on this thread.
  - LocalH 7y ago
    If you're referring to the order kiosks, that's not really the same thing, since the staff is still preparing your order. In fact, I prefer those kiosks, as I can use them to remove a point of failure and ensure that my order goes into the system correctly.
- nickpsecurity 7y ago
  That doesn't tell you anything for two reasons: missed profit by mismanagement and operating vs net profit. Especially those companies. First one. I have friends that work at every retailer you named. Every one of them intentionally leaves stuff empty on the shelf to get workers to do side jobs, esp displays, reports, abd various meetings. Walmart and Target start throwing money away towards the afternoon after they're mostly stocked. Kroger starts leaving stuff empty in the morning to do scans or "walks" as employees describe them. None of these intentional losses are in their annual reports or the media. Latter being because they're big customers of media. Second part. The percentages you quoted are whats left after all their big spending. For instance, both Walmart and Kroger in my area are doing million dollar remodels. Although some are welcome, many changes are just moving shit around. Customers wouldve kept shopping regardless. So, that easily couldve stayed in final profit. They often give executives raises in 6-7 digit range. They have way more managers in stores and offices than Publix which is more profitable. Also, local Kroger uninstalled some registers and added more self-checkouts despite their profit going up just before that. Obviously, the two weren't connected. So, the operating profit vs justifiable expenses is what to look at along with management practices which you get surveying employees. When management is bullshitting, the employees are often more than happy to tell you about it if you seem sympathetic and esp have your own stories. Once I knew it was intentional, I almost entirely boycotted Walmart and Kroger with me going to companies like Costco, Aldi and Piggly Wiggly who still stock shelves. Piggly Wiggly and Trader Joe's also still have plenty of checkers/baggers despite "tough market conditions" others report. And that Piggly Wiggly is in one of most cut-throat areas price-wise. Talking $0.89-0.99 cent gallons of milk at all stores at times with Aldi dropping eggs to $0.28. Fresh Market straight-up canceled their store mid-construction seeing how rough it was.

gizmo686 7y ago

These are publicly traded companies. We do not need to guess what they are doing. Walmart has a profit margin of 1.62% https://www.macrotrends.net/stocks/charts/WMT/walmart/net-profit-margin https://www.macrotrends.net/stocks/charts/WMT/walmart/net-pr... Target: 3.96% https://www.macrotrends.net/stocks/charts/TGT/target/net-profit-margin https://www.macrotrends.net/stocks/charts/TGT/target/net-pro... BJs: 1.13% https://www.macrotrends.net/stocks/charts/BJ/bjs-wholesale-club-holdings/net-profit-margin https://www.macrotrends.net/stocks/charts/BJ/bjs-wholesale-c... For reference: Alphabet: 19.71% https://www.macrotrends.net/stocks/charts/GOOG/alphabet/net-profit-margin https://www.macrotrends.net/stocks/charts/GOOG/alphabet/net-... Microsoft: 31.18% https://www.macrotrends.net/stocks/charts/MSFT/microsoft/net-profit-margin https://www.macrotrends.net/stocks/charts/MSFT/microsoft/net... McDonalds: 28.19% https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/net-profit-margin https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/net-...

lozenge 7y ago
Now McDonalds is a company which clearly is introducing self checkout to raise their margins, but I don't see any hand wringing about it on this thread.
- LocalH 7y ago
  If you're referring to the order kiosks, that's not really the same thing, since the staff is still preparing your order. In fact, I prefer those kiosks, as I can use them to remove a point of failure and ensure that my order goes into the system correctly.
nickpsecurity 7y ago
That doesn't tell you anything for two reasons: missed profit by mismanagement and operating vs net profit. Especially those companies. First one. I have friends that work at every retailer you named. Every one of them intentionally leaves stuff empty on the shelf to get workers to do side jobs, esp displays, reports, abd various meetings. Walmart and Target start throwing money away towards the afternoon after they're mostly stocked. Kroger starts leaving stuff empty in the morning to do scans or "walks" as employees describe them. None of these intentional losses are in their annual reports or the media. Latter being because they're big customers of media. Second part. The percentages you quoted are whats left after all their big spending. For instance, both Walmart and Kroger in my area are doing million dollar remodels. Although some are welcome, many changes are just moving shit around. Customers wouldve kept shopping regardless. So, that easily couldve stayed in final profit. They often give executives raises in 6-7 digit range. They have way more managers in stores and offices than Publix which is more profitable. Also, local Kroger uninstalled some registers and added more self-checkouts despite their profit going up just before that. Obviously, the two weren't connected. So, the operating profit vs justifiable expenses is what to look at along with management practices which you get surveying employees. When management is bullshitting, the employees are often more than happy to tell you about it if you seem sympathetic and esp have your own stories. Once I knew it was intentional, I almost entirely boycotted Walmart and Kroger with me going to companies like Costco, Aldi and Piggly Wiggly who still stock shelves. Piggly Wiggly and Trader Joe's also still have plenty of checkers/baggers despite "tough market conditions" others report. And that Piggly Wiggly is in one of most cut-throat areas price-wise. Talking $0.89-0.99 cent gallons of milk at all stores at times with Aldi dropping eggs to $0.28. Fresh Market straight-up canceled their store mid-construction seeing how rough it was.