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The profit margin figure cited for grocers is the margin on their "main business" — i.e. revenue on grocery goods sold minus cost of grocery goods from supplier
by derefr 2y ago
The profit margin figure cited for grocers is the margin on their "main business" — i.e. revenue on grocery goods sold minus cost of grocery goods from suppliers.
But this ignores other ways grocers make money (at much higher margin) — e.g. by charging their suppliers for shelf space/positioning.
- arcticbull 2y agoNo that's their total net profit margin as reported in the earnings statements.
- mostly_harmless 2y agoIt also ignores that they often own the suppliers. "Woops, our supplies raised the price, so we need to too."
- arcticbull 2y agoGeorge Weston Limited, the top-level entity that owns Loblaws and all subsidiaries has an even lower margin, at 2.9%. This should account for the entire umbrella of ownership, I believe.