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What do the global chain stores do differently that they can justify the rent against the store revenue?
by maxerickson 5y ago
What do the global chain stores do differently that they can justify the rent against the store revenue?
- blevin 5y agoLarge co's play different games than mom & pop. They can afford some near-term losses if they can make the case it prevents competitors from gaining a foothold. Banks can justify rent on a seemingly empty branch in an expensive retail area if it supports catchment area of desirable clients that visit in person once every 18 months. Etc.
- seafoam 5y agoScale in distribution, especially marketing / brand / name recognition
- treis 5y agoI think people just like chain stores better. Plus they can take advantage of bulk buying for materials, services, advertising, etc.
- canadaduane 5y agoIt could simply be brand recognition. Visitors to a city will know which chain stores to visit to get what they need, glossing over (or avoiding) unfamiliar stores. So mom&pop stores get local customers, while chain stores get local PLUS just-visiting customers; multiply by months and years.