Had a friend work for BigBoxBiz_X. He was the manager of a separate location. He had worked in the store location they were planning on buying when it was owned by a different company entirely (it was retail as well). While working there the place closed for theft. Like as in they had so much theft they couldn't keep the store open.
Months into his new management position at BigBoxBiz_X he gets pulled into a company meeting with all the higher ups they ask him:
“So we have already purchased this location and are setting up shop in it. Do you know anything about the area?”
He replies “Yes I do. Its a horrible area. You should immediately sell the building/plot for the most you can possibly get and cut your losses now.”
The Financial Team comprised of a few economists gets on the line “IS THAT REALLY YOUR ANSWER?”
He replies “Yes. I know for a fact that….”
Financial Team: “Well, our projections state this should be at least a 2.4 million dollar location.”
He replies “Yes that might work if…”
Financial Team: “NO IT WILL WORK!”
He replies again: “Ok so what kind of loss due to theft do your projections take into account for?”
Financial Team: “Loss? I mean thats on the store manager to put a stop to.”
Head manager jumps in and says: “OK, well how about this. [Friend] If you know so much about the area how about you run the store? We will give you a small pay raise of 1k a year and you can just run the location.”
My friend chimes in: “Ok I'll do it but only if you can guarantee that I won't be fired after one quarter.”
Boss looks at him and says “Done. You are now responsible for ensuring that this store is a success and we can guarantee that any mistakes made lay solely on you.”
My friend Chimes in “Not with those conditions. I won't change locations sorry. The blame must be put in writing that if we take a loss larger than our revenue your entire financial team is fired.”
Boss stops dead in his tracks. “NO YOU ALREADY AGREED!”
“… to a different set of terms.”
Boom fired.
What they refused to listen to is that they purchased the land from another company that closed due to loss. People (like 25-50 people) were breaking in at least once a month and clearing the place out. The previous location was a barbershop. Yes a BARBERSHOP! A really big and nice barbershop. When I say the place was cleaned out I mean that the owner (multiple locations) came in three times to find literally the entire store empty. As in they took the mirrors, chairs, etc.
Why were the projections so good? Because in my home town the crime rate is literally 1/100th the rest of the country (Drunk Driving aside) However there is one area in town everyone knows you don't go in unless you live there. It is like a 'no go zone' from the bronx mixed with nothing but gangs running the place. You don't open up businesses there. You avoid it at ALL COSTS! The city quite literally erected a wall around the area (aside from roads) to prevent the crime from seeping out when that started becoming a problem. Every crime thats committed in the city is committed in that area.
4-5 buinsess have opened, gotten robbed, and closed.
BigBoxBiz_X quite literally closed after two quarters. The higher ups wouldn't even drive to the location because they were so afraid of the area.
Let me explain something a simply as I can: The current financial crisis is manufactured by the larger corporations stupidity. You are supposed to listen to on the ground advice at all times when you work at the top of a corporation. Lots of financial experts will tell you no better advice exists than that of the average person and getting that out of them is really hard.