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> Costco, Target and Safeway have to pay to maintain inventory in their stores, and thus have 'skin in the game'. Can you clarify this? No major retailer pays
by jt2190 7y ago
> Costco, Target and Safeway have to pay to maintain inventory in their stores, and thus have 'skin in the game'.
Can you clarify this? No major retailer pays up front for inventory. They do pay rent and other overhead though. Is this markedly different than Amazon?
- mschuster91 7y agoOf course the retailers pay for all the stuff they buy, they only have rather large payment windows - I've seen anything from 90 to 180 days. This is also what creates a problem for retailers once the public learns that they are struggling - vendors either shrink their gaps or demand upfront payments for new goods, leading to a further financial crunch. This is in Germany shown with the Galeria Karstadt/Kaufhof chain that has had its faie share of "crunches" over the last years.