Grocery stores are pretty much the definition of a perfectly competitive industry. The profit margins are always between 1 and 3%. The only reason they raise prices is because they have to.
I wasnt disputing your margins report but that it makes for perfect competition. Why are you assuming low margins necessarily lead to better competition? With low margins, volume dictates the winning business in the unregulated marketplace. Big businesses monopolize and then one day have more leverage over their margins than the marketplace itself. Not a problem when antitrust laws are enforced but those laws have had their teeth pulled for the last 30 years.
Whole Foods has to be. The few times I have been there I was disgusted by the prices. Mother fuckers, I just want some apples. I don’t need certified that some old hippy said they were all natural.
Grocery stores are pretty much the definition of a perfectly competitive industry. The profit margins are always between 1 and 3%. The only reason they raise prices is because they have to.
Thay was true once. It hasn’t been for decades.
Name a grocery store with a higher margin than 3%
I wasnt disputing your margins report but that it makes for perfect competition. Why are you assuming low margins necessarily lead to better competition? With low margins, volume dictates the winning business in the unregulated marketplace. Big businesses monopolize and then one day have more leverage over their margins than the marketplace itself. Not a problem when antitrust laws are enforced but those laws have had their teeth pulled for the last 30 years.
Whole Foods has to be. The few times I have been there I was disgusted by the prices. Mother fuckers, I just want some apples. I don’t need certified that some old hippy said they were all natural.
Briefly was at 4% in 2013 declining to around 2% in 2017 before being acquired by Amazon.
https://www.macrotrends.net/stocks/delisted/WFM/whole-foods-market/net-profit-margin
So why are the major chains making billions more the last few years?
Which chain?