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Leverage in grocery retail

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Grocery stores who are reducing their prices and taking a reduction in their profits margin, for items that are already heavily reduced. By doing this the company is hoping to bring in more customers and while they are shopping will purchase higher priced items. Would you agree or disagree?

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Response discusses the leverage in grocery retail.

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This strategy is known as loss leader. Loss leaders are goods or services offered at steep discounts (generally below cost) in order to attract new customers to a ...

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