A grocery store decides to drop its health and beauty section of products because it has been unprofitable.This strategy could backfire because:

Question

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Dropping the health and beauty section could lead to a decrease in sales for the store because customers may choose to shop at a competitor's store that still offers these products. Even though the department may not have been profitable, it may have attracted customers who ended up purchasing other items at the store. Additionally, simply dropping the section does not automatically free up space or eliminate fixed costs, as the store may need to move around existing shelves and fixtures or find new products to fill the space.

A Grocery Store Decides to Drop Its Health and Beauty