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Biden adviser calls for grocery chains to bring down their profit margins, as elevated prices still sting [No, this is not satire]
Morningstar ^ | 02/15/24 | Victor Reklaitis

Posted on 02/15/2024 9:03:36 AM PST by Eccl 10:2

Lael Brainard: 'People are fed up with high prices,' especially for 'things that they buy on a weekly basis, groceries in particular'

A top Biden economic adviser on Thursday pressed on with the administration's recent effort to go after grocery stores and food companies over elevated prices, as inflation remains a major worry for voters as November's presidential election nears.

"Grocery prices, they are important to people because they pay those prices every week," said Lael Brainard, director of President Joe Biden's National Economic Council, during a news conference at a National Association for Business Economics event in Washington, D.C.

"We've seen in consumer brands, that in a lot of cases, they are effectively raising unit prices, but masking it by shrinking packaging, and it's important to call that out and to use the tools we have to go after that. And, you know, I think for the grocery stores and chains that raised their margins during the height of the pandemic, it's time to bring those down."

(Excerpt) Read more at morningstar.com ...


TOPICS: Business/Economy; Front Page News; Government; Politics/Elections
KEYWORDS: derfuhrerisangry; despotism; fjb; food; groceries; investments
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To: Eccl 10:2

Grocery store profit margins are 1% to 3% -

https://smallbusiness.chron.com/profit-margin-supermarket-22467.html


41 posted on 02/15/2024 9:31:42 AM PST by Opinionated Blowhard (When the people find that they can vote themselves money, that will herald the end of the republic.)
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To: EastTexasTraveler

“Every dollar of profit is a dollar taken from a worker’s pocket”, said no mentally balanced economist ever.


42 posted on 02/15/2024 9:32:16 AM PST by Eccl 10:2 (Prov 3:5 --- "Trust in the Lord with all your heart, and lean not on your own understanding")
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To: Eccl 10:2

he should lead by example and cut the 10% for the big guy

c’mon man!


43 posted on 02/15/2024 9:34:18 AM PST by joshua c
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To: DouglasKC

Democrat admins target American industries for political gain.
They only add to the misery.
They will call for new federal regulations on grocery stores which will raise prices even more.

F J B.


44 posted on 02/15/2024 9:37:17 AM PST by Texas resident (Biden=Obama=Jarrett=Soros)
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To: Texas resident
Well...

...It's shows they care.

They feeeeeel our pain. And we loooove them for it.

45 posted on 02/15/2024 9:42:13 AM PST by Theophilus (covfefe)
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To: rlmorel

totally agree...

we are living it more and more each day except for the mass apathy part. we are not to that part yet


46 posted on 02/15/2024 9:43:40 AM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
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To: Eccl 10:2

So much for evil having a cunning intellect.


47 posted on 02/15/2024 9:45:54 AM PST by lastchance (Cognovit Dominus qui sunt eius.)
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To: Eccl 10:2
Americans Believe Grocery Store Profits are 14 Times ... Yahoo Finance https://finance.yahoo.com › news › americans-believe-... Feb 15, 2023 — CHICAGO, February 15, 2023--Americans believe that grocery retailers are earning a 35.2% net profit margin, 14 times higher than grocers' ...
What Is the Profit Margin for a Supermarket? Small Business - Chron.com https://smallbusiness.chron.com › profit-margin-super... Nov 14, 2018 — Grocery store profit margins typically range from 1 percent to 3 percent, depending on the items. Grocery stores make their money on volume
.
What are the Average Grocery Store Profit Margins? Epos Now https://www.eposnow.com › resources › what-are-the-... May 25, 2022 — On average, grocery stores make about 2.2% profit on each product they sell which isn't a lot of profit,
Are big grocery chains profiting from inflation? CEOs say no CBC https://www.cbc.ca › grocery-price-analysis-1.6774669 Mar 11, 2023 — Major grocery chain CEOs say profit margins are as thin as ever, even as they're raking in record profits.
Demystifying the Supermarket Business Model Untaylored https://www.untaylored.com › Blog Nov 14, 2023 — Another critical aspect is pricing. Supermarkets operate on a low-margin, high-volume model. They keep prices competitive to attract customers

48 posted on 02/15/2024 9:46:05 AM PST by daniel1212 (Turn 2 the Lord Jesus who saves damned+destitute sinners on His acct, believe, b baptized+follow HIM)
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To: PGR88

Out of curiosity what do you suppose the profit margin is for politicians?


49 posted on 02/15/2024 9:46:41 AM PST by lastchance (Cognovit Dominus qui sunt eius.)
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To: Wuli
“ Kroger’s net profit (Nov 2023) was 1.9%, not 22%.”

That makes more sense. I have always heard that grocery stores operate at a 1-2% profit margin.

50 posted on 02/15/2024 9:49:28 AM PST by circlecity
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To: Ciaphas Cain
"...All those leftists perishing because of a failure to accept reality..."

Boy, is that ever spot on.

I have read it probably 5-10 times in my life, and I always read the first few pages of John Galt's statement then skip the rest. I read it all the way through the first few times, then skipped it thereafter.

All of it is ingrained in me. I don't need to read it. It would be like reading "I like sunny days. Sporty cars. Tasty food. Beautiful women..." etc.

51 posted on 02/15/2024 9:50:36 AM PST by rlmorel ("The stigma for being wrong is gone, as long as you're wrong for the right side." (Clarice Feldman))
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To: goodnesswins

Commies don’t know how money is made. They assume it is the result of greed.


52 posted on 02/15/2024 9:53:20 AM PST by RoosterRedux (A person who seeks the truth with a closed mind will never find it. He will only confirm his bias.)
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To: Eccl 10:2

So what is he going to do? Nationalize the grocery chains?


53 posted on 02/15/2024 9:53:54 AM PST by McGavin999 ( A sense of humor is a sign of intelligence, leftists have no sense of humor, therefore……)
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To: Vermont Lt

You’re comparing Kroger’s gross profit margin (sales minus inventory expenses) versus the other companies’ net profit margins. Once you add in the cost of running the stores and paying the employees Kroger’s drops to around 2% for the net. Microsoft’s gross profit margin was almost 70%.


54 posted on 02/15/2024 10:04:37 AM PST by KarlInOhio (Democrats' version of MAGA: Making America the Gulag Archipelago. Now with "Formal Deprogramming")
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To: Oberon

Liberals love jobs. They just hate business.


55 posted on 02/15/2024 10:08:25 AM PST by jmacusa (Liberals. Too stupid to be idiots.)
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To: jmacusa

“Liberals love jobs.”

For other people. “Jobs” = “work”, and they’re not doin’ it.


56 posted on 02/15/2024 10:25:30 AM PST by MayflowerMadam (Fraud vitiates everything." - SCOTUS)
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To: Wuli

Milk is typically sold at or below cost as a LOSS LEADER.

Hence, this is why they always put it in the back corner of the store. So, that you hopefully buy something else that they make money on.

FYI, I bought chicken leg quarters on sale this week at Market Basket in NH for $.79/pound. This is equivalent to pre covid pricing.


57 posted on 02/15/2024 10:28:34 AM PST by woodbutcher1963
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To: PGR88

I have done accounting for over 66 years.

I worked in the offices of 4 different grocery chains-—Madison, Wis KROGER
Milwaukee, Wis IGA
Los Angeles, Cal Hughes & Thriftimart

I have never heard of their profit being over 1.5%


58 posted on 02/15/2024 10:30:34 AM PST by ridesthemiles
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To: Vermont Lt

I worked in Kroger Divisional offices in past years.
NEVER have heard of ANY such profit margins.

22% NOT happening.

MAYBE 2.2%


59 posted on 02/15/2024 10:32:00 AM PST by ridesthemiles
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To: Wuli

DEMOCRATS ONLY KNOW HOW TO LIE.


60 posted on 02/15/2024 10:33:33 AM PST by ridesthemiles
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