re: Supermarket chain stops selling Pepsi products do to price rise

quote:

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I don't really get this. Don't the stores just sell the brands at a margin and let the labels compete against each other? Unless the brands aren't moving because they are overpriced relative to their competition, how does it effect the merchant one way or the other? I'm sure there's a massive amount of nuance I'm missing. Anyone have some insight?

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A few thoughts …

It makes the retailer look bad if the price is high. Consumer now believes the entire store is expensive.

This is good free advertising for the retailer.