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The major brick and mortar stores are not solely dealers, they often have various deals where they sell items on consignment and do not pay for inventory until
by PeterisP 5y ago
The major brick and mortar stores are not solely dealers, they often have various deals where they sell items on consignment and do not pay for inventory until after they're sold, require payment for "shelf space", etc. That's transparent from a customer perspective, but from a supplier viewpoint they're often quite close to brokers in practice.
- mthoms 5y agoThe consignment model and paying for shelf space are the exception in retail though, not the rule. They tend to exist only where there is a huge asymmetry in power between retailer (usually large chains) and suppliers.
- PeterisP 5y agoIsn't most of retail done by large chains with a huge asymmetry in power?
- mthoms 5y agoDepends on (1) what country/region you live in and (2) what brand you're talking about. For example: Yes, Safeway may be huge, but so is Procter and Gamble. Is there an asymmetry there? I'm not sure. Anyways, large chains don't deal exclusively in consignment either.