Don_DickleIf someone opened a store and just sold stuff at cost, which undercuts every other competitors by alot. Would this not for the big corps to come way down on their prices?
Long story short, logistics benefits from scale. The cost to ship a pallet of poptarts to a store is roughly the same as shipping half a pallet. Smaller stores can’t really undercut larger corporations because they don’t have the scale.
Also when your mom and pop store doesn’t make a profit for 3 months, they go under. When a Walmart doesn’t make a profit for 3 months, they stay open because they have those loses spread across hundreds of other Walmarts.