Stores with heavy debts to pay off tend to cut back on inventory to save money, but such moves can have unintended consequences over time.
In the short run, losses might not be noticed because losing the sale of Heinz ketchup to a single customer may be overshadowed by what the store saved in inventory cuts. But significant losses are incurred over time if regular customers who did not find their Heinz decide to shop elsewhere rather than risk wasting their time at a store frequently missing what they desire.
“It’s not just about making a sale, but it’s about having enough inventory so that customers come back in the future,”
