StillLearning12358 t1_ja7rjjw wrote on February 27, 2023 at 2:02 PM Reply to ELI5: why do grocery stores in the US keep such a large inventory? Aside from being prepared for episodic panic buying like toilet paper or bottled water, is there an economic reason to do this? How much of the food ends up going bad? by DrEverythingBAlright I used to order for a store in the Midwest. While we were not as big as target or Walmart, we had stores in 9 states so we had some buying power. At the store level, I'd get vendors coming to talk to me with certain deals too. Price per unit would come down the more we bought. For instance, string cheese may be 2/each cost to store if I bought 10 cases, but 1.50 if I bought 20 cases. I regularly looked at how many cases I could sell in like 2 months and order that many so we could bank the extra cash for the store. Stores work on earning the next penny so those .50 cents would add up Permalink 6
StillLearning12358 t1_ja7rjjw wrote
Reply to ELI5: why do grocery stores in the US keep such a large inventory? Aside from being prepared for episodic panic buying like toilet paper or bottled water, is there an economic reason to do this? How much of the food ends up going bad? by DrEverythingBAlright
I used to order for a store in the Midwest. While we were not as big as target or Walmart, we had stores in 9 states so we had some buying power.
At the store level, I'd get vendors coming to talk to me with certain deals too. Price per unit would come down the more we bought.
For instance, string cheese may be 2/each cost to store if I bought 10 cases, but 1.50 if I bought 20 cases.
I regularly looked at how many cases I could sell in like 2 months and order that many so we could bank the extra cash for the store.
Stores work on earning the next penny so those .50 cents would add up