No; the 5 stores was just as an example. There are 6 major grocery stores where I shop (2 each of 3 different chains - I shop on the way back from traveling; I don't grocery shop at Target or Walmart).
It works like this - let's say I'm a JAMN customer and it's at store A, but not at store B. If store B starts carrying JAMN, I'm not going to start buying twice as much JAMN as I did before; I'll just buy it at a different place if I happen to shop at store B that day. Might JAMN reach some customers who only shop at Store B? Sure, and that's why there is some increase when JAMN adds stores, but that sales don't increase by the same percentage as back when JAMN was finding completely new markets.
There are 37,000 grocery stores in the United States. But that does not mean that they're going to have 7 times their current sales if they go into all the stores. When they went from 500 stores to 5,000 stores, they were in 10 times the stores, but only had 3 times the sales that they did before (that is what saturation means). Take away Walmart and you're talking about 30,000 stores, 5,000 of which JAMN is already in.
Will adding new outlets increase sales? Sure; obviously. But JAMN has reached saturation; they've already reached most of the people that they're going to reach in this market.
JAMN can no longer expand to 10 times the number of stores that they can reach - there aren't 50,000 stores that would sell the coffee.
The problem is, they need 7 times current sales just to break even; there's just no way for them to do it.
