Generative “AI” data centers are gobbling up trillions of dollars in capital, not to mention heating up the planet like a microwave. As a result there’s a capacity crunch on memory production, shooting the prices for RAM sky high, over 100 percent in the last few months alone. Multiple stores are tired of adjusting the prices day to day, and won’t even display them. You find out how much it costs at checkout.
That’s crap. They’ve loaded their stock on a certain price and they want to surf the high wave while they can.
That’s Free Markets, baby!
They also need to be able to replenish that stock at current prices. I’ve worked retail many times in my life and arguably kinda-sorta do so now (albeit largely over the Internet) and I’ve never run any store where we did not set our pricing by replacement cost rather than original invoice cost. In my current operation there are some rare exceptions for clearance items and the like, but for the vast majority of products we sell for what it’s going to cost me to get the next one to put back on that shelf, not what it cost me for the one I’m selling you now.
I don’t have any insider insight into other companies’ operations, but I imagine a lot of other retailers work things the same way. Especially these days.
Almost all retailers inventory on consignment. So, no.
No they don’t. They purchase at a fixed rate.
I think what we’re seeing is the result of their stock depleting actually. AI has been buying up supply for a while, and I don’t think the consumer markets are able to compete.