I did work there. It's not by branch, it's corporation-wide policy. What the other guy is calling "cost" is probably what his manager told him was "cost", so your friend was telling the truth as he knows it. The managers do not want the sales staff thinking there is any room to cut the prices below a certain level. But that level is not the actual cost to the store: it is the cost plus a markup for operations overhead, plus a manager's markup, and they might have another one too, I don't recall. They pad the cost so that even when an employee buys gear, or they cut a deep discount for a customer, the store is still covering its operational expenses.