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529 sats \ 11 replies \ @grayruby 15 Sep 2023 \ on: Why we need Bitcoin: Canada Fed is blaming and threatening Grocers... 🤯😧 bitcoin
There is no price gouging. Grocery stores run on 2-3% margins on their core goods. The majority of their profits come from kickbacks from brands and all the other crap they sell which they can make huge margins on.
Disagree. Read my comment below. Sobeys +profit YOY by ~50%. 😳 there is a concentration of grocers in Canada that drive lower prices and even then... read my comment below.
"Gouge" in the wrong word. But increase prices out of correlation and line with costs of production is more accurate.
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"Read my comment below. Sobeys +profit YOY by ~50%"
That in it of itself doesn't mean much. What is their net income over revenue ratio?
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Good point.
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Sobeys or parent company empire? Please link data.
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Most Canadians colloquially call the conglomerate "Sobeys" which is what I was referring to. Out east they have a chain but across Canada they have other brands. Safeway, thriftys etc.
Financials are public on their website. Shell helped but even still. The company is crushing it lol.
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Yes, I understand but Empire has been restructuring for years and acquiring brands so if I don't know if the numbers you were referring to are comp store sales or inclusive of a brand acquisition.
If I own the local coffee shop and my sales are 1M this year but buy the coffee shop down the street that generates 500k sales I just increased revenue by 50% even if each individual store didn't generate any revenue increase.
So if we aren't talking comp store sales the data is murky and susceptible to false narratives. I am not saying that's the case here but would need to look at the financial reports to determine.
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That's a great point! I always teach my students to scrutinize stats. Yes the specific data is more forgiving. Esp since grocers often dip in and out of gas station business. Which sobeys/empire did for a profit. So the narrative sounds worse that it is.
I have no problem with charging whatever they want mostly.
But there are only a few grocer conglomerates now in Canada. Which sets an intersting stage.
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There is definitely some price gouging. Not all supermarket / food companies are the same. Some, like Loblaws, actually have gotten away with slap on the wrists for price fixing, even before the COVID lockdowns and inflation running up etc.
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I agree! It's not always a black and white issue. There's some low key price fixing and gouging going on but not extreme or across the board by any means. In an open market anyone can charge whatever they like. But monopolies of an essential good like food are where it also gets complicated.
Yeah I think loblaws was fixing bread prices right in collusion.
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But yes, the "price gouging" rhetoric is not as convincing after all the monetary inflation. Bitcoiners know about volume of money and devaluation, most non-coiners don't even think about it in those terms. Many people really do just think "landlords are greedy" or "grocery stores are greedy" and don't see the knock on effects of inflationary monetary policy.
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Yes agreed totally. Landlords are def other the issue.
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