Final answer:
Peter can explore several strategies to handle inflation and employee raises, such as seeking cheaper suppliers, adjusting store hours, reducing employee hours, or offering a loyalty program. The most effective approach may involve a combination of cost-reducing measures and strategies to boost sales.
Step-by-step explanation:
Given the scenario where Peter operates an "Everything for a Buck" store and is dealing with inflation and the need for employee raises, he must consider various strategies to maintain profitability. Seeking cheaper suppliers could significantly reduce overhead costs allowing him to retain his pricing model. Adjusting store hours might optimize operational costs but may not address the core issues of increasing costs.
Reducing employee hours could be a temporary fix, however, it's not a viable long-term solution as it may affect service quality and employee morale. Lastly, offering a loyalty program could enhance customer retention and increase sales without necessarily reducing costs; this strategy, while it makes the store attractive, doesn't directly tackle inflation and wage pressures. It's clear that a multifaceted approach is necessary to address the challenges faced by Peter's store.