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GrinchMcScrooge t1_isuiqbh wrote

When I worked at Target, if our store didn't show annual increase in sales of at least 12%, we lost payroll for the next year to keep profitability increasing. This was the case for 12 straight years. And the payroll decrease was always bigger than what we missed sales by. So if you only increased sales by 10%, you lost ~5% of payroll for the next fiscal year. If you only increased by 5% YoY, you lost ~10% of payroll, etc. I think the CEO changed 3 or 4 times while I was there and this was always the standard.

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Dirty_Old_Priest t1_isumq9m wrote

That's not expecting infinite growth at all. That's actually forecasting future lower sales to heed off unprofitability.

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