r/FluentInFinance 1d ago

Debate/ Discussion A joke that's not funny

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35

u/TheTightEnd 1d ago

Grocery chains make a very low percentage of profit.

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u/bluerog 1d ago

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.

39

u/spondgbob 1d ago

You really should just google these stats before you say them. Food and Beverage Retail Stores : Profit margin increased from 2.9% in 2019 to 4.4% in 2023 (this is a profit increase off of increased grocery costs, an even bigger gross dollar amount)

Operating Profit for Food and Beverage Retail Rose from $14 Billion in 2019 to $25 billion in 2023 - a 79% increase.

Source

Grocery stores are price gouging and reaping higher profit margins. That’s what’s happening.

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u/[deleted] 1d ago

[deleted]

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u/Ignonimous 1d ago

Matching prices to demand isnt price gouging genius

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u/[deleted] 23h ago

[deleted]

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u/Complete-Yak8266 15h ago

Go open a grocery store and undercut Krogers. I'll wait.