One reference I saw to loss leaders online suggested milk and sugar two items that all supermarkets stock at low prices knowing that people who drop by for milk will proably also pick up a basket of other goodies. I wondered if there were similar products in men's clothing stores. Also, I've seen mention on this board that the Ralph Lauren Purple Label line looses money. Â Would you consider this a loss leader line?
That's also why the milk is almost invariably (at least in recently-designed supermarkets) in the very back of the store- so you have to walk by everything else to get to it. I don't know about the low prices though, my local markets always want a lot for milk. Surprisingly, the Rite Aid drugstores always have it for $2 a gallon, about 1/2 price of the supermarkets. And actually, that one used to work on me, to get me in there. And while I'm in there, I do have a sniffle, perhaps some Sudafed or Kleenexes.... I don't really drink milk anymore, but anyway. RLPL: Perhaps they consider it an advertising/cachet expense, like very expensive runway shows that only represent a concept and actually bring no direct income to the brand (AFAIK, anyway). It's not a loss leader because no one goes to buy RLPL at such a great price and, "while they're there anyway," picks up some more pedestrian Polo garb at the same time. However, I don't doubt that they may lose money on some things in their Polo line, perhaps some staples like the Polo shirt itself, in order to draw shoppers into the Polo area of a store, and improve brand ubiquity as well by having as many people wear their logo as possible. Now that I think about it, maybe that's the point of the $20 polo shirts at the outlets that are, as far as I can tell, exactly the same as the ~$60 ones at the mall.