Grocery stores in general.....especially Wal-Mart Informative - Do you wonder why you find out of date products in grocery stores?
One of the biggest reasons Wal-Mart has become such a giant in the grocery business is this:
They go to manufacturers such as Sara Lee, Kraft, etc. and demand they sell products to them for less than other stores. How do they do this and still make a profit? A lot of companies have been forced to eliminate their sales force to accomodate Wal-Mart (as well as other chains) under the false promise of "get rid of your sales force, sell to us cheaper, we can then hire more people to monitor the products at store level." Guess what...the products rarely get any attention at store level except for being put on the shelves. The CEOs of Wal-Mart and certain other chains take this extra money (which amounts to billions of dollars at a cost to the consumer) and pocket it. They hire people for $6.00 per hour and expect them to do the work of a person who is paid 30K per year.
I hate to think what the grocery business will be like in 10 years.