3 ms·
FWIW, grocery chains in the US have low single digit margins. I don’t think they’re gouging anybody. Also, prices at my local grocery store are frequently lower
by toasterlovin 8y ago
FWIW, grocery chains in the US have low single digit margins. I don’t think they’re gouging anybody. Also, prices at my local grocery store are frequently lower than at Costco (a warehouse-style store).
- sitkack 8y agoGross Profit vs Net Profit. Gross Profits are in the 20-40% range, Kroger (22%) [1] Safeway (28%) [2] Whole Foods (34%) [3] Those Net Profits of 1.5% look like a target, not a byproduct of a cut throat business. Smart and Final, a warehouse and restaurant supply store [4] has a GP of 14%. [1] https://csimarket.com/stocks/singleProfitabilityRatios.php?code=KR&gro https://csimarket.com/stocks/singleProfitabilityRatios.php?c... [2] https://csimarket.com/stocks/singleProfitabilityRatios.php?code=SWY&gro https://csimarket.com/stocks/singleProfitabilityRatios.php?c... [3] https://csimarket.com/stocks/singleProfitabilityRatios.php?code=WFM&gro https://csimarket.com/stocks/singleProfitabilityRatios.php?c... [4] https://csimarket.com/stocks/singleProfitabilityRatios.php?code=SFS&gro https://csimarket.com/stocks/singleProfitabilityRatios.php?c...
- toasterlovin 8y agoYou need overhead to run a business. Pointing to GP is nice for a company that can expect overhead to stay the same while they reap the benefits of increasing scale, but all the large grocery chains in the US are already at scale. If there was extra net profit to be had by reducing overhead, they would have done so already.