Mackey is a businessman first. He realized early on that by selling so called organic/good stuff IE its better for you (this is the marketing angle, Facts are irrelevant) HE could double/triple his sales per SQ Ft of floor space, This is the key metric in the grocery store business. There is no limits to what can be sold in terms of item…
Mackey is a businessman first. He realized early on that by selling so called organic/good stuff IE its better for you (this is the marketing angle, Facts are irrelevant) HE could double/triple his sales per SQ Ft of floor space, This is the key metric in the grocery store business. There is no limits to what can be sold in terms of items But there is a finite amount of physical space in a grocery store and they measure their fiscal performance on $ sold per SQ FT. So Mackey was smart enough to know that be going down this high price premium product that they all claim to be superior he could improve the financial performance of his company. that is why the organic's natural foods are pushed at the grocery store level. If I can take my sales from $500/sq. ft. to $3000/SQ Ft and I make my same 2% of gross I will vastly improve my bottom line. IE if your customer wants a purple cow sell them the purple cow just get paid more for it. He is did not go this route to provide healthier safer foods. He did it to make more money than a conventional grocery store.
Mackey is a businessman first. He realized early on that by selling so called organic/good stuff IE its better for you (this is the marketing angle, Facts are irrelevant) HE could double/triple his sales per SQ Ft of floor space, This is the key metric in the grocery store business. There is no limits to what can be sold in terms of items But there is a finite amount of physical space in a grocery store and they measure their fiscal performance on $ sold per SQ FT. So Mackey was smart enough to know that be going down this high price premium product that they all claim to be superior he could improve the financial performance of his company. that is why the organic's natural foods are pushed at the grocery store level. If I can take my sales from $500/sq. ft. to $3000/SQ Ft and I make my same 2% of gross I will vastly improve my bottom line. IE if your customer wants a purple cow sell them the purple cow just get paid more for it. He is did not go this route to provide healthier safer foods. He did it to make more money than a conventional grocery store.