5 ms·
Dollar stores have on average a 2% profit margin, just like grocery stores. They are not the villains here.
by cm2012 10mo ago
Dollar stores have on average a 2% profit margin, just like grocery stores. They are not the villains here.
- bjackman 10mo agoThis is like cheating in a golf match against a professional and then saying "I got the same score as my opponent, I am not the villain here".
- bombcar 10mo agoEspecially since it’s advantageous to adjust suppliers that you own to maintain tiny margins (who owns the land they rent, for example)
- 1123581321 10mo agoSubsidiary income would be included in a financial statement.
- bombcar 10mo agoNot if the landlord is a side entity and not a subsidiary.
- 1123581321 10mo agoYou were talking about subsidiaries, though. The company owning both Dollar General and the sister real estate would report consolidated income. If you're saying there's a secret arm's length relationship between a dollar store chain and a real estate holding, structured just to trick the public into thinking low cost retail is low margin, I'm afraid that is not true.
- sejje 10mo agoI don't think it is, so maybe you can help me draw the parallels.
- bjackman 10mo agoBoth groups have the same profit margin (golf score). One group is achieving it by deceive customers (cheating at golf) while the other is achieving it without doing that (being good at golf).
- cm2012 10mo agoDo you think large dollar stores are faking or cheating their profit margin numbers?
- pixl97 10mo agoI mean, they are cheating customers on the item price, so it goes to show they'll do illegal stuff without care, so yea, why not.
- bjackman 10mo agoThis is like me showing you my scorecard after cheating at golf, and saying "do you think the scorecard is fake?". Real profit margin. Achieved through deceit. This is vilainy.
- dehrmann 10mo agoNot charging the best-advertised price is dishonest. It might also be in customers' best interest if the cost of keeping consistent price data on low-margin items costs more than whatever the inconsistency is. Or the answer might be that dollar stores sell too wide of a variety too cheaply on too low-margin product to play supermarket-style pricing games effectively.
- skippyboxedhero 10mo agoTheir returns (margins are irrelevant) are usually lower than grocery stores. Large retailers will turn over their inventory tens of times a year, dollar stores won't so the returns are typically lower. For some reason, left-wing journalists turn into law of one price zealots when confronted with this issue. The reality is that these locations have low-volume and stores everywhere are relatively expensive to run now. For some reason, journalists get angry at the company rather than people who control how much it costs stores to operate. I mean local governments in the US had no problem accepting Dollar General's sales tax from their poor constituents shrug probably more than the corporation is making from the store. I live in the UK and there is a store like this, Co-Op. The Guardian finds it easier to blame evil foreign corporations because the Co-Op has much higher prices but is a non-profit so the narrative of the evil corporation crumbles.
- nrhrjrjrjtntbt 10mo agoYou can find a poor me for almost any corporation to excuse their ripping people off.
- tclancy 10mo agoWhat does their margin have to do with anything? Or, what things do you think they should and shouldn’t be able to do given their low margins?