The Salvation Army Thrift Store in Cheyenne Wyoming closed about two years ago. I don't have the details but I believe that the labor cost was greater than the revenue. Most o=if not all of th staff was paid. There may also have been some other reasons but a net loss is a good enough reason.
The store is back in business with a different operations model.
The two buildings are owned free and clear of debt. Possibly the only fixed cost is insurance on the buildings.
The items sold are all donated. The staff is all volunteer. The only variable cost might be the utilities.
For all practical purposes the net profit is equal to the revenue.
Because of limited inventory the store is now open one day a month. As donations pick up, rather than have "percent off sales" the store can add days that it is open. This part is only my speculation. It is true that the operation is more sustainable.
That store now is similar to an internet experience or information business. Once the website is set up the incremental cost of a sale is zero.
The lesson to be learned is that if the economy has a no growth recovery, competitive advantage will come from new operations models like the Salvation Army Thrift Store.
In the late 60s when supermarkets went to Sunday opening and then 24/7 the others had to do the same for competitive reasons. What if for competitive reasons shortening of hours was necessary for survival?
Sustainability may stem from reduced revenues rather than from growth. Minimization of fixed costs will be necessary. There will be reduced risk of all kinds and related reduction of expenses.
Shortening hours is only one way to reduce revenue and costs. There are some other options. We are dealing with them on a case by case basis. The American way of work is unfortunately being forced to change.
David Sneed
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