Masters Hardware: Perhaps the greatest Australian example of the "Sunk Cost

After a lot of speculation, a month or so back Woolworth announced that it was winding up its Masters Hardware operation; but why did the decision take so long?

For a long time, I personally believed that it was a classic case of "Sunk Cost".

In addition to Masters; after a long time going down the same results track, Target Canada pulled the pin on its operation.

So what is a "Sunk Cost Fallacy"?

Simply put it's a mistake in reasoning when "the current/total sunk costs of an activity - instead of future costs and/or benefits", are considered when deciding if to continue with an activity.

The link below takes you to an interesting story that News did in late January.

Well worth a read.

Wayne~

Target’s multi-billion-dollar disaster could happen again.