It is desperate time for some retailers. Krispy Kreme in Seattle is selling coffee for a nickle to maintain traffic flow:
“…The “New Deal” promotion began Oct. 14 and has no end date, but it can’t go on forever — five cents doesn’t even cover the cost of the 12-ounce cup and lid, let alone the arabica coffee inside. “It is a much better deal today than it was in 1937,” Centioli said. “Drink sizes for coffee and otherwise were much smaller back then.””
Hopefully, the customers will not be there just for the coffee. As essentials such as fuel and basic groceries limit people’s spending, the competition will be intense for those remaining dollars. For some businesses, it has become a matter of survival. Taking a risk on a ‘loss leader’ is far preferable than just watching customer traffic fade away.