I am not with the company so I can give an honest perspective. The locations would not operate well without layers of management. The shrink would be through the roof, customers would not be serviced properly and there would constant infighting within the locations. If you think upper management can't manage, you haven't work with very good DM's. Most associates are not capable of managing, driving metrics, being consistent , having no favorites and staying within labor laws. The locations would have liabilities you just could not imagine. The perceived talent pool and skill sets is most people's ego's talking and not a real understanding of what they don't know. Any business that has tried to do away with those layers have failed miserably.
Good point, @XzfkgXt-oin.