Supposedly real wages are rising faster than inflation and Democrats want that so they would have to raise gross margins to cover that. They also want to raise minimum wages and always demand more benefits.
How would Kroger cover that without raising prices since their margin is so thin? Think of how many more employees would have to be added to the government and to businesses if they had to comply with these additional regulations.
Think about how much prices would have to go up if the Democrats get their way with their radical green policies.
Democrats also want to raise corporate taxes and taxes on capital gains and dividends which are already double taxed.
The only way to maintain a 2% profit margin is to raise prices further and that exacerbateses inflation. Nothing the Democrats have proposed would reduce inflation.
“SHRINKAGE” is a cover word for THEFT
I wish the ho would talk about the way her government is gouging the bank accounts of American families.
The only price gouging occurs via the government...the subsidies for all this climate crap...which has screwed up our economy and numerous industries.
This will work only if you enact Directive 10-289!
Prior to JFK, Atlas Shrugged was the 2nd most read book in the USA (behind The Bible) for a reason.
they left out shrinkage and spoilage as cost drivers. Consider how much shrinkage - retail theft - it would take to sink a store operating at such tight margins.
Meanwhile, what’s the government’s percentage?
Taxes, paperwork, inspectors, regulators, etc. etc.
Some yahoo here on FR noted that grocery stores are a trillion dollar business.
So what?
I replied that there are 62000 grocery stores. At 1.6% margin,!that works out to an average of $200,000. Then I shared the cost of an eight door freezer. $26,000. That’s razor thin for an industry that has repeat customers every week.
Check out this cool chart.
https://fullratio.com/profit-margin-by-industry
It might be too complex for VP Plan B to figure out.
Starbucks is price gouging. Banks are price gouging with mortgage rates. Homeowners are price gouging with homes for sale. Landlords are price gouging with rent prices.
Lawyers are price gouging. Hospitals are price gouging. Doctors are price gouging.
Idiot! It’s called inflation, and you caused it.
Democrats ruin everything
The writer left off the cost of all the merchandise that walks out the front door without paying. That’s a Democrat thing.
Says it all! “That is BS or pure stupidity. You can tell they never ran a business.”
How much retailer profit is there in eggs, milk, bacon? If I were to go down my normal shopping items, I bet most are minimal. I recall when I worked in retail that that only things I saw with high margins were toothbrushes costing a few cents and selling for dollars.
If anything , Kroger (in my case, Harris Teeter) has been very measured in how they pass their increasing overhead on to the customer the past few years since covid.
BTTT
In most places the government makes more off the sale due to sales tax vs the profit margins of the company. In addition the multitude of regulations again costs the consumer more than the profit margin.
The single biggest cost driver for almost every product is the Government.
I’m not so sure it is grocery store chains she is concerned with. More like the food producers and their mark ups. In any case, she is not qualified in the matter.
check the union labor wages used while shipping goods.
remove the union and wages will drop which would effect pricing.
The price of government is taxes. The government is price gouging.
To quote a line from the series “VEEP”, and seeing Harris’s first attempt at controlling inflation by communistic price controls, “It’s like watching a goat operate an ATM machine.”