Quote:
Originally Posted by secondcurve
Irish Mist:
It sounds like this was an independent using the Star name, not a Star company store. Also, earlier in this thread someone alluded to the fact that seasonality hurt the store as well. This is a good point. Seasonality and 5% gross margins aren't a recipe to make a lot of money. I think you would be surprised at how little independents earn, despite what seem like high prices to you. In any event, they are gone so hopefully the other store picks up the slack and competitively meets the needs of the community.
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Secondcurve,
This was no small mom and pop organization. See the link:
http://www.omnifoodssupermarkets.com/index.html
Note that they lost another store in Chestnut Hill to a "Lease Running Out." This was a chain that had buying power and the ability to pass those savings on to the customer. They chose not to do so. In the end it bit them in the butt. You also oversimplify things by stating that they could just ".. cut their prices to the level of Hannaford's and stay(ed) in business..." I'm afraid that it just doesn't work that way. People do not forget that easily. If you noticed Jackson Star had a huge banner out front for the last few months "DOUBLE MANUFACTURERS COUPONS." Essentially cutting their prices down to Hannafords levels. It did not seem to work. The wheels for this closure were started long, long ago. It was only a matter of time before this happened. It is unfortunate and in this economic crisis I feel for the employees. The focus should not be on the people who abandoned shopping at Jackson Star. The blame is squarely on the shoulders of the ownership. To continually equate Jackson Star with "Heath's" "Beans and Greens" "Moulton Farms" etc and other Mom and Pop shops is incorrect in my opinion.