Yes the retailer A is the efficient Frontier.
When two retailers are in a competition based on costs and ambience, they would be identical. The retailer called A is the cheaper person than B. This means he has the better ambience hence A is the more efficient frontier.
The portfolios that are known to be at the bottom or below the frontier are those that would be termed sub optimal. The reason is because there are no sufficient returns that exists for the level of risks that they may carry.
Because retailer A is cheaper and it has better ambience than we are able to know that the efficient frontier is that of retailer A out of these two.
The importance is that it helps the retailers to be aware of the potential risks that their portfolios and the results that they carry.
Read more on the efficient frontier here:
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