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Is this necessary? Cynicism isn't always a necessary characteristic when reading an earnings report. Jordan Peterson said something that I that I try to take to heart, which is "believe people when they say something is the motivation for their actions." This doesn't mean that their explanation is the real reason for the action, but it is what they believe is the reason behind their actions. Corporate entities have a good reason to not lie on earnings reports and losses (getting sued and/or fired for lack of transparent reporting on earnings), I am willing to take their statements as generally factual, even if corporate stupidity is closer to the real reason.
You're correct it could be pure mismanagement of their corporate entity, but this is why selfishness vs trust is an important distinction. Adam Smith understood this concept that self-interest could result in creating public good. A corporation would do something 'good' (offer food for a lower than profitable price) at the goal of customer acquisition. The result was increased popularity and attendance of the restaurant, but at the cost of underestimating the popularity and/or any potential abuse of the deal.
Companies are not accepting these downsides. Many places I see are now employing full-time security guards to prevent theft, are closing self checkout locations (my local Walmart has closed all self-checkout locations and has people checking customer receipts on exit), and has gates to prevent people leaving without going through a checkout. Any store which is unable to adequately prevent losses are closing. Brooklyn has losing 50 different chain stores in the past year. Companies are reacting to increased theft and are shutting down unprofitable stores. The losses of accidental check out are negligible to people deliberately stealing significant dollar amounts of items from retailers.
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