ABSTRACT
Strategies in retail are basically developed to optimise the objective function for the long-term. Every retailer has to begin with some necessary costs for the business operations, even if no sales are made, such as rent or the purchase of a store, and the purchase of material and equipment for the store. Once the retailer starts making sales, the costs that do in fact depend on the sales are added to the fixed costs. The pricing within the e-tail infrastructure will often occur in a totally different manner than in the traditional retail structure. The effect of the scissors is one of the reasons why, in retail, particular Scissor mechanism attention is paid to the sales development from day to day. The long term translation of the scissor mechanism is the break-even mechanism. The break-even philosophy was originally developed from financial management and this is why, in literature, it is also generally treated with the financial key figures.
