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Without knowing what fraction of their costs are wages you can't give a meaningful answer. If 100% if their costs are wages they obviously can't raise wages mor
by adrianN 4y ago
Without knowing what fraction of their costs are wages you can't give a meaningful answer. If 100% if their costs are wages they obviously can't raise wages more than 2.2% without going bankrupt. If 1% of their costs are wages they can double them without meaningfully affecting their profit margins.
- claytongulick 4y agoLMGTFY: it's between 9-14% [1] https://www.ncr.com/blogs/retail/supermarkets-turn-to-technology-to-manage-grocery-costs https://www.ncr.com/blogs/retail/supermarkets-turn-to-techno...
- AstralStorm 4y agoWhich means they're exposed to any material costs a lot. So, when a company like BP or Shell raises fuel price by 33%, they're forced to match it or maybe try to get more things sourced locally, cut out middlemen - rather hard. Usually they'll raise the price a bit more further.