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The consequences will that their record profits since COVID-19 will dry up and they will need to figure out other ways of cutting expenses.
They will crash like they did in the 1980s and rationalise their business model by selling off their smaller branches. IGA will suddenly have a lot more members, Foodworks will be much bigger and Tuckerbag may even make a comeback.
The problem is that they have overcapitalised. Near us, we have two very large Woolworths within walking distance from each other. Two suburbs over, it is the same with two very large Coles’s.
The bottom has dropped out of the OEM software licence market. Microsoft have to find a different way of making money. Their loss-leading hardware sales have not borne fruit so they are getting desperate.
All they have left is services, which means that the only way the can actually make money is selling out their customers private information.