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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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