posted on Sep, 11 2010 @ 05:05 AM
Why would a business want to invest in building/rennovating and running a grocery business in such an economic climate?
I may be wrong, but from what I read, the tax burden in Detroit and even Michigan is overwhelming...then there are the Unions to contend with. I saw
the comment that the Unions want to run their own store...so when wages are an issue, will they strike against themselves?
Then, who will shop there? What will be the currency?...WICS, Food Stamps, some cash.
If it is the war zone that even some Detroit natives say it is...what about your profit margins balanced against theft and shoplifting, damage,
maintainance, security... there is money to be made in groceries... but the profit margins are fairly thin. Even in successful chains...the GROSS
Profit on a can of veggies is one penny.
The real money is made in produce, meat, dairy... the usual perimeter of the store, and tie in items...spatulas, bowls, grills, tooth brushes, etc.
Frankly, if such a venture is a good idea...then I would think that the unemployed and working poor of Detroit could co-op or pool there money and
start a grocery store...sounds like a good opportunity for a local entreprenuer or a group.
What's that you say? It's too risky to put your money into? Well then... you and the CEOs of national chains do have something in common.
What? You don't have enough money? It would takes hundreds of thousands of dollars...maybe millions to start up a store. And you just don't have
that kind of money. So we need the evil rich people to finance it...even though we overtax them now and punish them for being successful. Well,
where's the incentive...the rich investors finance and invest...the store is successful...and then detroit and Michigan tax the hell out of them...
There is really no reason to excell nor invest nor innovate in that sort of climate.
That , in my opinion, is why there are no national chains there...won't make any money, and if you do...you will get it taken away.