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[–] 178 points 1 year ago (34 children)

It's great. Beat out other grocery stores so prices drop to compete. Have grocery stores donate soon to be expired food to these gov stores for tax breaks. That handles safe disposal. If it's not sold. Turn it into feed for farm animals. Sell it cheap to farms. Their stuff goes down.

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  • [–] 57 points 1 year ago* (last edited 1 year ago) (10 children)

    Plus, it's probably going to go to the food *desert areas first. I dig it.

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  • [–] 24 points 1 year ago

    that's exactly the goal of the program.

    there's something like one grocery store per 1500 residents in new york (far more, per capita, than my entire county).

    many residents have multiple options nearby, but some (around 750,000) do not live within 5 blocks of even just one. those are the neighborhoods this program would target.

    these city-run stores are not intended to serve 'everybody', just those who aren't served by anything.

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  • [–] 30 points 1 year ago (8 children)

    Dessert is what you have after a meal. You can help remember this by thinking there are more S's because you want more dessert.

    Thanks for coming to my Ted Talk.

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  • [–] 4 points 1 year ago (5 children)

    Genital dessert is the best kind of dessert tho.

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  • [–] 6 points 1 year ago

    It's not the grocery stores, it's the food corporations. And animal feed can't just be left over groceries. There's a science to feeding livestock at scale. Not that some.ofnitncouldnt be used, just saying it's not all that simple. Otherwise I 100% agree with the sentiment.

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  • [–] -5 points 1 year ago* (19 children)

    Beat out other grocery stores so prices drop to compete.

    Grocery stores operate on extremely thin margins. There isn't much to cut either for the private store or the government store.

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  • [–] 16 points 1 year ago (8 children)

    That's not true, and they make money in lots of ways:

    • They sell the end cap and shelf space. That's why you see the cheap, simple stuff on the bottom shelves. To even show up in a store, a company has to pay to play. Think of it like the Google Play Store or Apple Store.
    • They get bulk discounts and contracts to sell stuff.

    Costco operates on thin margins because they make their money on the membership fees.

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  • [–] -3 points 1 year ago* (2 children)

    The other commenter brought up Kroger. A grocery store that operates on a 1.5% profit margin.

    That’s not true

    I don't know what to tell you. 1.5% profit margin is razor thin. There isn't anything to cut for the private stores or the government stores.

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  • [–] 0 points 1 year ago (1 child)

    What I'm saying is, they need to prove that because all that I'm saying is true.

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  • [–] -2 points 1 year ago*

    Kroger is a public company, the presented numbers are their financials. Everything you mention is part of how they squeeze out a measly 1.5% profit margin. There isn’t much to cut for the private store or the government store.

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  • [–] -4 points 1 year ago (3 children)

    That's not true, and they make money in lots of ways:

    You understand that the net profit of 1.5% includes all sales and all expenses, right? It's neat-o they're selling space in the store, but that's already factored in.

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  • [–] 10 points 1 year ago*

    That includeds executive pay packages too, right? I dont think whoever is runnung these is going to make $21 million/yr like the kroger CEO.

    That and the other blown out of sanity exec pay should help lower in store prices, even if the workers are making his proposed $30/hr wage.

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  • [–] 8 points 1 year ago (2 children)

    A bag of chips at one of the local groceries is $7, and it's smaller than it used to be.

    Everything is more expensive and smaller.

    If the private market can't do it at a profit without cutting corners or stiffing labor, then don't.

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  • [–] 11 points 1 year ago (4 children)

    Kroger says their gross margin in 2024 was 22.3% and their operating profit was 3.8 billion.

    The Kroger Co. - Kroger Reports Fourth Quarter and Full-Year 2024 Results Announces Guidance for 2025 https://share.google/aUYB1Wjkppj7l0qAA

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  • [–] 8 points 1 year ago* (2 children)

    Kroger's revenue is $150B, with a net income of $2.3B. That is a profit margin of.....1.5%. One-point-five percent profit.

    As I said, grocery stores operate on tiny margins. There isn’t much to cut either for the private store or the government store.

    gross margin in 2024 was 22.3%

    Gross margin is not profit, it only accounts for direct costs of the goods being sold. Hence why their profit is only 1.5%.

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  • [–] 3 points 1 year ago

    They have thin margine but very high turnover. It's not a business plan based on holding stock. The shelf space turns over multiple times per week. They may pay suppliers 30 days after selling to a consumer.

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