except walmart didn't operate at a loss in most cases. they figured out early on that they could operate profitably on the float between when they took delivery

except walmart didn't operate at a loss in most cases. they figured out early on that they could operate profitably on the float between when they took delivery and sold items (usually a few days) and when they paid their suppliers for them (weeks, sometimes months, later). in effect, these were continual short-term zero-interest loans that, combined with predatory labor pay rates with socialized costs, often exceeded operating needs, so stores often generated profit entirely from finance rather than operations, and thus could offer cut-throat prices. it's become a classic business case study in cash flow management taught in business schools and employed quite sucessfully by other mega-retailers like carrefour in france.