At least one major retailer is hoarding hundreds of millions of rounds of .22lr in its warehouses, withholding it from most of the country so it can be diverted to new retail store openings. As for the gougers, they were out in force at a recent store opening trying everything they could to purchase more than their 2,800 round limit. The same ammo is now posted on the local classifieds at twice what they paid for it.
Let's assume, for the sake of argument here, that "hundreds of millions of rounds" equates to 500 million rounds. What you are saying is that "one major retailer" has hoarded 10% of the annual output of .22LR being manufactured in the United States?
For what purpose?
Not that I have to prove anything to you, but I'd consider firsthand knowledge of it proof enough. This is what is happening with one major retailer and it is effecting supply across the country. I stand to gain or lose nothing by sharing what I saw and I could care less whether you believe it.
I'm not sure what part of stating facts based upon direct observations you perceive as rage. Tell the class a little about this "free market" of which you seem to be a self proclaimed expert?
If you don't have anything to "prove", then why are you posting it?
And even if this one "major retailer" is hoarding .22LR, guess what? It would NOT affect the supply across the country because they can only hoard what the manufacturers are sending THEM. Such hoarding would have absolutely no effect on the supply to the rest of the retailers across the country.
When? The past 21 days.
Where? I will not divulge the retailer as my intention is not to bring them ill will or cause them to catch flack for their business practices.
If you won't tell us who it is, then what's the point?
I like your math and logic, but I didn't say 150 million went to a grand opening. Try approximately 3-5 million per store, most bulk, some smaller quantities. Apply your logic and the numbers become more reasonable. And quantities do trickle onto store shelves from time to time, but 10-15K doesn't last long in this market.
I shared this because it was something I hadn't considered and other retailers are likely doing the same thing. It is a business strategy, but it influences equilibrium and can drive up prices.
As a "business strategy", this one would suck. If the purpose of this strategy is to drive prices up, then it fails because retail prices aren't being raised. It fails twice as much when you consider that "hoarding" of this ammo in warehouses costs money. Money which, evidently, isn't being recouped by higher prices.
And let's assume this "major retailer" you're not divulging the name of is Walmart. Walmart has over 3,000 super centers in the U.S. Assuming 4 million rounds per store (an average of the 3-5 you cited), that would be 12 billion rounds hoarded. That's about 2.5 YEARS of total annual production of .22LR in the U.S.
Assuming it's Academy you're talking about, there are 138 stores. That adds up to 552 million rounds. Which would mean you'd be telling us that a chain that sold $3.7 billion in retail goods last year is intentionally paying storage space to sit on half a billion rounds of .22LR ammunition?
Assuming it's Cabela's, there are about 50 or so. That adds up to 200 million rounds hoarded for a sporting goods store with a booming ammunition sales section. Doesn't seem like good business to me to pay storage for "hoarding" something they could be selling.
If you've got something to put out, then put it out, give us something to investigate on our own, and be done with it. Otherwise, it's all baseless hearsay.
