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Neighborhood when it profits are less than break

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Walmart and many box stores will enter a new neighborhood when it profits are less than Break/Even. Sometimes it may take 3 -5 years to make a profit. Why would Walmart do such a risky venture? How is it able to fund a losing few stores as it branches out into new less populated neighborhoods?

Is there a time limit on every store as to where Walmart if it doesn't reach a profit where it might close it down and what do you suppose that time limit might be?

Reference no: EM132436168

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