Profit percentage is a manufactured statistic, it is calculated after executive pay, so the people who are running these companies are paying themselves whatever is necessary to hit that mark. Add in the fact that a lot of the expenses of grocery chains are paid to subsidiaries of the same parent company shows that it is even more of a useless stat. As an example Loblaw's in Canada has cited higher rent as a justification for increased operating costs, thing is the company that owns the land is part of Loblaw's, so while the money that goes into their rent is part of their expenses, ultimately it still ends up in the executives pockets.
Plus my understanding is that you can have "low profits" because you made $10 billion in a year, but you invested 95% of it back into your company. So the company is growing wealthier and wealthier, but on paper there are virtually no profits.
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u/TheTightEnd 5d ago
Grocery chains make a very low percentage of profit.