In my town of 100,000 people there are four options. A universally high priced grocery, a dirt cheap, goods at our near their sell by date with the expected low quality grocery, a gas station convenience store, or a bunch of mid-tier grocers with a few different names all owned by the same parent company.
Oh believe me. If that parent company was dumb enough to remove prices from items, and if that is even legal in your state, then a competitor would enter very quickly, making a big deal advertising about how it displays prices, and everyone would start doing their shopping at that competing mid-tier grocery store. Because that's how capitalism works.
You are making the fundamental mistake of thinking that the current equilibrium of local stores will continue to persist once some of the stores make a deep and fundamental change to their business. That is obviously not the case. It would create a gigantic strategic opportunity for competitors. And competitors really like finding strategic opportunities where they can make a bunch of money now where they couldn't before.
Nobody will shop there then. They've tested this and consumers will go elsewhere unless you're selling super luxury goods.
In my town of 100,000 people there are four options. A universally high priced grocery, a dirt cheap, goods at our near their sell by date with the expected low quality grocery, a gas station convenience store, or a bunch of mid-tier grocers with a few different names all owned by the same parent company.
Many places would dream of my "options".
Oh believe me. If that parent company was dumb enough to remove prices from items, and if that is even legal in your state, then a competitor would enter very quickly, making a big deal advertising about how it displays prices, and everyone would start doing their shopping at that competing mid-tier grocery store. Because that's how capitalism works.
You are making the fundamental mistake of thinking that the current equilibrium of local stores will continue to persist once some of the stores make a deep and fundamental change to their business. That is obviously not the case. It would create a gigantic strategic opportunity for competitors. And competitors really like finding strategic opportunities where they can make a bunch of money now where they couldn't before.