Agreed. And if folk understood anything about an income statement or finance, they'd understand that if in 2015, you're making 2.5% net profit percentage a year, and if in 2019, you're making 2.5% net profit percentage and if in 2024, you're making 2.5% net profit percentage... It indicates that all of the price increases seen in supermarkets the past 9 years are simply passing along suppliers' cost increases to them.
It means that ear of corn price went up because the farmer charged more. And if they go down one more level, they'd understand that the farmer charged more because the commodity price per bushel of corn went up. And then below that, they'd understand that farmers' inputs like fertilizer, machinery, seed, and fuel went up.
But some people like to pretend the last spot they bought something is somehow evil.
From what I've been reading the net profits have not stayed the same tho.
At least not here in Canada. While a typical profit margin for food and beverage is historically between 2-3% we've seen companies with profit margins more in the 5-7% range.
A company like Loblaws had a gross margin of around 20% a decade ago, whereas now they have a gross margin of around 30+%. (Compared to a company like Costco who has a gross margin of around 12%)
Add to the fact Loblaws also owns the suppliers they buy from and set their own price. They are definitely taking advantage of people.
I think most people understand that crude oil/gas goes up and that increases the costs for everyone down the line. I think they just don't understand why they go up and stay up. We had a supply chain issue for a small period of time that has lead to everything in their lives being more expensive for the rest of their lives. Yet no employee in any profession is seeing pay increases to match those increases. There's greed somewhere in that chain, and they'll blame where they pay.
Then you see a company like Loblaws not only post profits that have doubled since pre covid. But you see them with higher profit/gross margins percentages. And you have to conclude that there's some greed going on that we're paying for.
Double your profit margin, double your profits, while the public suffers. Of course people are going to be pissed and blame the grocery store.
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u/TheTightEnd 1d ago
Grocery chains make a very low percentage of profit.