Big Grocer
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https://www.nationalreview.com/corner/elizabeth-warrens-big-whopper/
Big Grocery is one of the least profitable major businesses in the United States, with average margins coming in at a little over 2 percent. Warren has good reason to believe that voters aren’t aware of this fact. Walmart, for example, averages around 2 percent net profit; however, the public believes it pulls in 36 percent. But to put the numbers in context, health-care-products companies saw 10.91 percent net profits last year; home furnishers saw 4.63; household-product makers saw 11.71; restaurants saw 5.69; home builders saw 9.04; and online retailers saw 4.95.
Even with sales booming, grocery stores are having trouble realizing profits. One reason for this is that it’s one of the most competitive major industries in the country. There are numerous national chains (Kroger, Albertsons), regional chains (Meijers, Publix), higher-end markets (Trader Joe’s, Wegmans, Whole Foods), big box chains (Walmart and Target), and Amazon. Competition has, and does, drive down prices.
So an alternative theory — and I’m just spit-balling here — is that inflation is really happening, and all of Elizabeth Warren’s flailing is simply meant to try and divert attention away from the economic tribulations facing voters, which Democrats had promised to fix.
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The grocery biz is the definition of high competition.
When WallyWorld first built the Super Stores, which contained a full grocery line, they thought their bargaining prowess and just-in-time rolling warehouse approach would be a huge money maker. And at first, they did well around here, because they were cheaper.
That didn't last long. Prices are very competitive, wherever I shop. Stores have developed niches...Best delivery service, best meat department, etc. My market is not served by a store such as Whole Foods, as they wouldn't make it here.
The most surprising thing about the grocery biz is Dollar General...
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The woman is dangerously ignorant.
I've been buying stuff through Amazon fresh on an occasional basis. Prices are OK, delivery is great.
Interestingly, prices at Amazon vary on HOW you buy something.
Compare the "Prime Price" with the "Fresh Price" for the same item.
"Now look here, you Baltic gas passer... " - Mik, 6/14/08
The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.
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@george-k said in Big Grocer:
The woman is dangerously ignorant.
I've been buying stuff through Amazon fresh on an occasional basis. Prices are OK, delivery is great.
Interestingly, prices at Amazon vary on HOW you buy something.
Compare the "Prime Price" with the "Fresh Price" for the same item.
It's the same for other items, too.
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@george-k said in Big Grocer:
The woman is dangerously ignorant.
She really is, and really misses out on the fundamentals of free enterprise and how our economy works. She is constantly trying to take steps down the slippery slope for shared wealth and government control of everything.
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Big grocers who adapted have done really well in the pandemic. Kroger and Meijer are kicking Amazon’s ass on delivery and pickup and I predict they will eventually sell off Whole Foods.
But the margins suck. In most cases they have kept prices as low as they can.
“I am fond of pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.” ~Winston S. Churchill
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@89th said in Big Grocer:
@george-k said in Big Grocer:
The woman is dangerously ignorant.
She really is, and really misses out on the fundamentals of free enterprise and how our economy works. She is constantly trying to take steps down the slippery slope for shared wealth and government control of everything.
I agree from what I have read and hear of her.
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@mik said in Big Grocer:
Big grocers who adapted have done really well in the pandemic. Kroger and Meijer are kicking Amazon’s ass on delivery and pickup and I predict they will eventually sell off Whole Foods.
But the margins suck. In most cases they have kept prices as low as they can.
I don't know who runs that aspect of their stores, but you're right. Kroger has a superior app and superior service on delivery and pickup.
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Wegmans originally had Instacart put together their orders for pickup but later switched to their own employees. There was a noticeable improvement. The produce selections were far better as were the product replacements if they were out.
