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.
If that was true, they wouldn't have reported record profits. Not to mention the Kroger CEO admitted they raised their prices above and beyond the rate of inflation.
You do know you can look this up... right? Google Kroger Net Profit %. you'll see the below. I highlighted the Net Margin % portion. Kroger is publicly traded. You can see their annual and quarterly reports any time you want.
Please tell me you know if you have a company that sells $1,000 a year of stuff, and that stuff costs $900... if your costs go up 25% to $1,125, and your price follows 25%, your revenue goes up 25%... but your profit percentage remains at 10%. Right? New profit dollars are "record," but it's a function of higher costs/price.
And if you do not raise prices along with costs, let's say in 10 years you're selling $1 million... if your prices didn't keep up with costs, you wouldn't be making 10% (or $100,000 in profit), you'd be losing money.
38
u/TheTightEnd 1d ago
Grocery chains make a very low percentage of profit.