I agree -- I don't like the idea of the conglomerate forcing the small
business owner out
The small grocer will only be forced out if the customers do that, by shopping elsewhere. CUB & small grocers co-exist all thru the city, with both of them attracting enough customers to make money.
In the grocery business, it's extremely hard to differentiate your store by products -- a box of corn flakes is the same in each store -- so you have only 2 ways left: pricing or customer service. CUB has clearly staked out it's territory at the low-price end. Most of the smaller grocers are going for the customer service end: stock boys to bag your groceries and carry them to your car, butchers to do special cuts of meat for you, more friendly service, etc. The stores who do this well attract a very satisfied, loyal customer base, and don't worry that CUB will suddenly match them in customer service.


and if Target can't turn a profit there, how will Cub?
Because:
- People buy groceries much more often than they buy the kinds of things Target sells.
- People spend more money on groceries on average than at Target.
- People buy groceries every week, whether the economy is going up or down.
CUB stores have a much higher volume of sales than any department store; that's how they make a profit.


Tim Bonham, Ward 12, Standish-Ericsson


TEMPORARY REMINDER: 1. Don't feed the troll! Ignore obvious flame-bait. 2. If you don't like what's being discussed here, don't complain - change the subject (Mpls-specific, of course.)

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