3 ms·
> Especially when their profit margins are often in the low single digits. This is a little misleading, since a lot of their product on their shelve isn't paid
by mywittyname 2y ago
> Especially when their profit margins are often in the low single digits.
This is a little misleading, since a lot of their product on their shelve isn't paid for until 60/90/180/365 days after receiving it, and generally suppliers set aside money to help cover shrinkage. And they'll often agree to take back unsold goods.
There's a reason that so many of the largest companies in the USA are/were retailers. Borrowing something worth $100, then selling it for $103 may be low margin, but it scales incredibly well.