Interesting. In the non-Jewish retail world I don’t find a higher margins translate into better service. Ordering an item for delivery from Rite Aid doesn’t get me a better experience than ordering the identical item cheaper from Amazon. There are actually economies of scale that work in Amazon’s favor. One would think that Gourmet Glatt would have advantages over a smaller store despite lower margins.
You can’t compare Amazon/Rite-Aid to GG/competitor.
- Those are two completely different scales, the small fish Rite-Aid does more business (gross revenue) in a day than all Kosher Supermakets in the US combined do in a year (or close to it)
- the Kosher consumer is relatively more captive than your average Amazon/Rite-Aid customer
- Amazon is purely an online business (and a marketplace at that, where sellers are competing for your business), while Rite Aid is B&M (with an online component). GG is more similar to Rite-Aid than to Amazon
so it’s two completely different and incomparable markets
Bottom line, the premium supermarket is similar to Apple in this regard in that the consumer isn’t particularly price-conscious and is buying into a perceived brand/experience, whether or not the objective value is actually there.