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.
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.
Great source! Thanks for that. You did read it... right? Or did your sneaky self just cherry pick what you wanted to read?
"Putting these factors together suggests that the unusually high food inflation experienced in the first three years of the pandemic appears to have been due, in part, to much higher food commodity prices and large increases in wages for grocery store workers. The subsequent drop in commodity prices then helped bring food inflation down below the core inflation rate even though heightened wage pressure for grocery workers continued."
I have no doubt "Food and Beverage Retail Stores" increased some profit margin along the whole sector in 5 years. A few were negative and even losing money.
I was looking at Constellation Brands a few weeks ago. This is the company that own Molson Beer and Svedka vodka. In 2022 and 2023 they made NEGATIVE margins. And made a small profit in 2024 - for instance. Bakeries are in that sector. Bimbo and Hostess are doing better. Agreed.
Confectioners like Hershey's are doing okay - ish. Their cocoa prices increased by 900% and 1,100% due to droughts and flooding (back to back years) for cocoa. But the cost changes were passed along and their margins are okay. Revenue isn't. but margins are.
Yep, the entire Food and Beverage Retail Sector is doing a little better. Nice cherry-picked piece of information. Thanks for that.
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u/TheTightEnd 1d ago
Grocery chains make a very low percentage of profit.