So people don’t realize that not only are the chickens, milk and other things loss leaders. But also they don’t always earn direct profit from things like chips and soda, those are also ways to drive people in the door and the companies realized they could make convoluted merchandising deals.
Deals where shelf space is sold, circular ad space is bought, profits go to the soda or other distributor and stores get additional payouts based off hitting sales metrics. Outside merchandisers stocking the soda, because afterall it’s their product and sales… All to get people to hopefully load up a cart, preferably with their in house brands.
So people don’t realize that not only are the chickens, milk and other things loss leaders. But also they don’t always earn direct profit from things like chips and soda, those are also ways to drive people in the door and the companies realized they could make convoluted merchandising deals.
Deals where shelf space is sold, circular ad space is bought, profits go to the soda or other distributor and stores get additional payouts based off hitting sales metrics. Outside merchandisers stocking the soda, because afterall it’s their product and sales… All to get people to hopefully load up a cart, preferably with their in house brands.