Supermarkets have a very low moral compass

[Bretrick]

It angers me that they continue to gouge the public.
Looking at the profits over the previous four years it has remained the same, right through.
More than a billion dollars each year.
So while the public is suffering, the supermarkets are maintaining their profit margins.
Not hurting one little bit.
An item not available to make a profit on? easy, raise the price of other items.
Shame on them.

 

[Supernatural]

We'd supported a local grocery store for two main objectives. One for over 20 years, the second for over 15 years. I believed that loyalty would count for something.

Boy, was I wrong. Had our mobile cut off at the worst possible time. I couldn't believe the attitude. I walked away, keeping calm and letting karma deal with it. The deal I got somewhere else was much better.

Second bit which made me walk away from their business completely, came about in June passed. A tally of groceries was coming to a huge amount, it boggled the mind.

I cancelled the order, deleted all infos and remove the app for good. Took my groceries list, jumped on the bus with daughter and our two trolleys. Went to a store which was perused occasionally only before.

I bought 90% of what was on my list but the final tally went from previous at £155 down to £75. That was it... I've changed our shopping habits. I still visit 3 stores, however, the food overall is of much better quality and taste than the one which had my loyalty before.

One store currently is for the Kitten food pouches, which is enjoyed and best low prices. So, it's a trip worth it, as I find bargains and specials from time to time.

The second one, is for the frozen Ready-Meals, which are amazing and they have wonderfully tasty fresh breads.

Finally, the third one, is now my regular go to for the bulk of our groceries and even though the prices have gone up, it's still much better value than the old one.

I've the habit of banking food and goods for long-term. So I shop about twice a month but as an example with current month, February, I've less freezer foods required but more supplies required for bathroom and sink cleaning.

It's best to compare dot com and that at the end of the day, changing loyalty from a long-term to a new style, makes a huge difference to your pocket book and finding that the people in these latest stores are much nicer. That makes it for enjoyable outings.

Stop, think and consider what's in it for you, not them. Find a better deal and choices, after all it's for the good of you... Lessons learned!

 

[MrPants]

Actually in Canada they are not only maintaining their annual profit levels, they have exceeded them by a wide margin during a year when inflation ran rampant and no one could tell what increases were due to the inflationary pressures or just plain greed on the part of these grocery conglomerates. Shouldn't be any big surprise that corporate leaders who's only thought is for their shareholders would take any opportunity possible to fill their pockets!

https://globalnews.ca/news/9247691/...ocers all,from Dalhousie University has found.

 

[perChance]

Actually in Canada they are not only maintaining their annual profit levels, they have exceeded them by a wide margin during a year when inflation ran rampant and no one could tell what increases were due to the inflationary pressures or just plain greed on the part of these grocery conglomerates. Shouldn't be any big surprise that corporate leaders who's only thought is for their shareholders would take any opportunity possible to fill their pockets!

https://globalnews.ca/news/9247691/loblaw-big-grocer-profit-inflation-analysis/#:~:text=Loblaw tops big Canadian grocers in profit reports amid inflation surge: analysis,-By Brett Bundale&text=Canada's top three grocers all,from Dalhousie University has found.

The article refers to GROSS profits, which are nominally, but perhaps not actually, higher than previous years when inflation and expenses are factored in.

NET profits, (gross profits minus expenses), are a whole 'nother animal. Higher costs in farming, (feed, fuel, vet bills, wages, etc, etc), have to be factored in, and that's before the product goes to be processed, (again fuel, wages,).

The end product now has to be delivered....fuel, wages, yadda yadda yadda, I sense a pattern here.

Arrives at the store, whoops the supermarket employees have demanded more money, the electric bills are higher, in fact nothing is cheaper than it was the previous year.

It's not as if everything else has remained static and it's just the supermarkets who are isolated in raising the prices, it's right down the proverbial line - everyone in the chain, no exceptions.

Even NET profits have to keep up with, or ahead of, inflation simply to tread water, and no-one knows when/if inflation will cease rising and at what rate.

Oh, and speaking of shareholders, Teacher's Unions, Government Pension Funds, (perhaps these two entities will request lower returns? Naah, thought not), etc, etc, they all want increased dividends, because INFLATION dontcha know?

Bottom line, pretty much everyone will get less for more.

Governments, OTOH, kinda like inflation, since they make payments against their debt with reduced value currency.

 

[sch404]

Supermarkets are not moral actors. They are simply businesses trying to make a profit. And they try to stay in business by giving their customers what they want, including high quality food items and good service at competitive prices. If they stop doing that, first the store manager gets fired and if that doesn't work they close their doors completely. It is simply none of my concern how profitable the store is.

 

[Bretrick]

Supermarkets are not moral actors. They are simply businesses trying to make a profit. And they try to stay in business by giving their customers what they want, including high quality food items and good service at competitive prices. If they stop doing that, first the store manager gets fired and if that doesn't work they close their doors completely. It is simply none of my concern how profitable the store is

It is my concern when prices continue to rise well above inflation, very often I notice a product's price will rise 20%.
For any business supplying the necessities of life to make well over a billion dollars profit year after year is obscene.

 

[seadoug]

Most grocery stores are part of a larger corporation, and corporations are in business to make a profit rather than serve the customer. Look at the oil companies, airlines, hotels, etc. and this should be no surprise.

 

[SeniorBen]

There should be a windfall profits tax during times like these — especially with the huge deficits the federal government is running. But that won't happen.

 

[MrPants]

It is simply none of my concern how profitable the store is.

Precisely what they're counting on ... apathy! I don't begrudge any corporation a profit each year but I do begrudge taking advantage of the consumer in favor of pleasing the shareholders.

Another example is the pricing of Natural Gas this past year. Have a look at the Henry Hub Natural Gas Spot Pricing Index over the past year or so. Interesting to note that between August 2022 & Feb. 2023 there's been a 75% drop in the spot price per million btu's. Last Feb (2022) the spot price was double what it is Feb. 2023 ... I'm confused as to how my bill is 50% higher this year. Shouldn't the major cost component of my invoice be the cost of product?

 

[sch404]

Precisely what they're counting on ... apathy! I don't begrudge any corporation a profit each year but I do begrudge taking advantage of the consumer in favor of pleasing the shareholders.

Another example is the pricing of Natural Gas this past year. Have a look at the Henry Hub Natural Gas Spot Pricing Index over the past year or so. Interesting to note that between August 2022 & Feb. 2023 there's been a 75% drop in the spot price per million btu's. Last Feb (2022) the spot price was double what it is Feb. 2023 ... I'm confused as to how my bill is 50% higher this year. Shouldn't the major cost component of my invoice be the cost of product?

Apathy? Surely you jest! Besides being a customer of the store, I may well own stock in the corporation that owns the store. I actually do own stock in several companies that issue bills to me every month. Of course, as an investor, I want these companies to be as profitable and as successful as possible. As a consumer I don't generally care what they charge because my unrealized capital gains from owning the stock usually outweighs my cost of being their customer. Its called capitalism. It's the American way. Try it sometime. You might just like it.

 

[MrPants]

"As a consumer I don't generally care what they charge because my unrealized capital gains from owning the stock usually outweighs my cost of being their customer."

I don't understand the math you're using to support that statement?
In the past year - S&P 500 down 7%; Dow Jones down 2%; Nasdaq down 15% and that takes into consideration the early 2023 rally in all markets whereas prices on everything are up in the same time frame ... by a lot!
How are you ahead by owning stock in the companies you purchase goods from if you're taking unrealized capital losses on your holdings yet paying more for their products?

 

[Capt Lightning]

One of the projects that I worked on when in IT was for a food producer that supplied a number of supermarket chains. Essentially, the supermarkets had a stranglehold on their suppliers. They specified not only the product, but the price they would pay, the packaging etc..
In some cases the store wanted a product, say a pie, with a budget price below the production cost. In order to get shelf space to sell premium products at an inflated price, the producer had to accept the loss on the budget pie.

I was shown the specification for a salmon sandwich for one well known supermarket. It ran to 6 pages and described exactly each ingredient.
The salmon was weighed to the gram, because the profit margin was so tight. Supermarkets are not only squeezing the customer, but their suppliers too.

Like Supernatural, we shop at 4 different supermarkets every two weeks, where we can generally get the best value for different products. We buy meat and fish from independent traders and keep a good stock of food in our freezers. Before covid we used to help raise our own sheep and pigs (and the occasional deer) which we butchered ourselves, but small scale farming is barely viable these days. We grow some of our own fruit and veges and don't buy ready meals.

 

[perChance]

There should be a windfall profits tax during times like these — especially with the huge deficits the federal government is running. But that won't happen.

Great idea. Instead of profits going to the average investor, retirement funds, etc, they can be redirected to the government and be used for pork barrel projects and pay increases. Brilliant.

 

[jimintoronto]

The article refers to GROSS profits, which are nominally, but perhaps not actually, higher than previous years when inflation and expenses are factored in.

NET profits, (gross profits minus expenses), are a whole 'nother animal. Higher costs in farming, (feed, fuel, vet bills, wages, etc, etc), have to be factored in, and that's before the product goes to be processed, (again fuel, wages,).

The end product now has to be delivered....fuel, wages, yadda yadda yadda, I sense a pattern here.

Arrives at the store, whoops the supermarket employees have demanded more money, the electric bills are higher, in fact nothing is cheaper than it was the previous year.

It's not as if everything else has remained static and it's just the supermarkets who are isolated in raising the prices, it's right down the proverbial line - everyone in the chain, no exceptions.

Even NET profits have to keep up with, or ahead of, inflation simply to tread water, and no-one knows when/if inflation will cease rising and at what rate.

Oh, and speaking of shareholders, Teacher's Unions, Government Pension Funds, (perhaps these two entities will request lower returns? Naah, thought not), etc, etc, they all want increased dividends, because INFLATION dontcha know?

Bottom line, pretty much everyone will get less for more.

Governments, OTOH, kinda like inflation, since they make payments against their debt with reduced value currency.

A very good summary of what it costs to operate a national grocery chain in Canada. I own some shares in Loblaw's and Sobey's, and those shares pay ME a cash dividend yearly. People who bitch and moan about profits are usually the same ones who don't understand the concept of ownership of a business. JimB.

 

[DebraMae]

I pick up my grocery order. It has worked well through the pandemic, however, a couple of times recently I have received meat that is one day from its "best by" date. Both times it smelled odd and the second time the package was puffed up. I am 40 miles from a grocery store and cannot just take it back and exchange. I also got one order that contained so many dented cans it was as if they were trying to get rid of all of their imperfect products at once. Has anyone else started noticing this?

 

[Liberty]

Think Kroger's is doing a fine job...have watched their prices go back down and things like bread and snacks have been really lowered to almost what they were before the pandemic. Lots of sales. They've have coffee, beer and wine on sale for 20% off 6 units or more so it looks like they are competing with the big drink warehouses and big box stores like Costco and Sams.

Can't believe we can buy the normal wine we like (big 1.5 ltr bottles) for less than 6 bucks a bottle.
Usually get between 60 and 90 cents off a gallon for gas, too. No complaints. Using the Discover card right now to get an additional 5% off groceries, too. Life is good!

 

[jimintoronto]

I pick up my grocery order. It has worked well through the pandemic, however, a couple of times recently I have received meat that is one day from its "best by" date. Both times it smelled odd and the second time the package was puffed up. I am 40 miles from a grocery store and cannot just take it back and exchange. I also got one order that contained so many dented cans it was as if they were trying to get rid of all of their imperfect products at once. Has anyone else started noticing this?

Perhaps you should take the time to inspect your order physically before you pay for it at the store ?? We buy a weekly fresh food box ( the profits go to a youth shelter that my Wife supports ) and we always have the driver wait for a couple of minutes while we check the fresh vegetables in the box. Then we pay using a debit card to the driver, plus a cash tip of $5. JImB.

 

[DebraMae]

Perhaps you should take the time to inspect your order physically before you pay for it at the store ?? We buy a weekly fresh food box ( the profits go to a youth shelter that my Wife supports ) and we always have the driver wait for a couple of minutes while we check the fresh vegetables in the box. Then we pay using a debit card to the driver, plus a cash tip of $5. JImB.

It is already charged to my card when I pick it up, however, I have been thinking I will check it before I leave, or just start buying it somewhere else. Never had this problem before. I wonder if it is a change in their policy or if meat is getting scarce. Could be just pure coincidence.

 

[CarolfromTX]

Grocery stores have notoriously low profit margins. And they’re a business, not a charity.

 

[hollydolly]

We'd supported a local grocery store for two main objectives. One for over 20 years, the second for over 15 years. I believed that loyalty would count for something.

Boy, was I wrong. Had our mobile cut off at the worst possible time. I couldn't believe the attitude. I walked away, keeping calm and letting karma deal with it. The deal I got somewhere else was much better.

Second bit which made me walk away from their business completely, came about in June passed. A tally of groceries was coming to a huge amount, it boggled the mind.

I cancelled the order, deleted all infos and remove the app for good. Took my groceries list, jumped on the bus with daughter and our two trolleys. Went to a store which was perused occasionally only before.

I bought 90% of what was on my list but the final tally went from previous at £155 down to £75. That was it... I've changed our shopping habits. I still visit 3 stores, however, the food overall is of much better quality and taste than the one which had my loyalty before.

One store currently is for the Kitten food pouches, which is enjoyed and best low prices. So, it's a trip worth it, as I find bargains and specials from time to time.

The second one, is for the frozen Ready-Meals, which are amazing and they have wonderfully tasty fresh breads.

Finally, the third one, is now my regular go to for the bulk of our groceries and even though the prices have gone up, it's still much better value than the old one.

I've the habit of banking food and goods for long-term. So I shop about twice a month but as an example with current month, February, I've less freezer foods required but more supplies required for bathroom and sink cleaning.

It's best to compare dot com and that at the end of the day, changing loyalty from a long-term to a new style, makes a huge difference to your pocket book and finding that the people in these latest stores are much nicer. That makes it for enjoyable outings.

Stop, think and consider what's in it for you, not them. Find a better deal and choices, after all it's for the good of you... Lessons learned!

Tesco and Sainsbury will not reward you as a loyal customer.. clubcard vouchers,et al are just a blindfold to higher prices.

Morrisons and Asda the 2 more affordable Supermarkets at one time have in fact raised their prices this last year more even that T&S.. and the Quality of their food is not good overall.. so it's a damn nerve..

I still shop in all the supermarkets ..including Waitrose and M&S ... and have been shopping predominately in Aldi for the last 2 or 3 years.. but their prices have risen exponentially in the last few months. For example a litre of Skimmed long life milk which just a few months ago, was 55p has now almost doubled to 95p.. and this is reflected in most goods in Aldi. particualrly the Basics.. so I've stopped buying there now altogether, and I buy most of my groceries and paper goods in Costco... and buy in Bulk..

I now find that due to the rise in price of longlife milk, it;s cheaper and longer lasting for me to buy 2.2 litres of fresh skimmed milk for £1.65, and freeze it than pay 95p in Aldi and even more in Sainsbury etc.. for just one litre of longlife milk.. so I buy that in any supermarket where I might go to buy the few random items I don't want to buy in bulk or can;t buy in Costco

 

[hollydolly]

I pick up my grocery order. It has worked well through the pandemic, however, a couple of times recently I have received meat that is one day from its "best by" date. Both times it smelled odd and the second time the package was puffed up. I am 40 miles from a grocery store and cannot just take it back and exchange. I also got one order that contained so many dented cans it was as if they were trying to get rid of all of their imperfect products at once. Has anyone else started noticing this?

I've noticed this too in the regular supermarkets.. Too much of the 'fresh meat' is dangerously close to the sell by date.. and in fact on many occasions I've seen meat that is clearly gone grey still in the fridges and not yet reached it's sell by date, and have drawn the attention of a customer service person, who've removed it.. however it's something that puts me off buying ready prepared food.. if I can see so called fresh meat obviously gone off in the fridges, what are/ is the meat like inside a ready meal which you cannot see ?

 

[RadishRose]

I've noticed this too in the regulalr supermarkets.. Too much of the 'fresh meat' is dangerously close to the sell by date.. and in fact on many occasions I've seen meat that is clearly gone grey still in the fridges and not yet reached it's sell by date, and have drawn the attention of a customer service person, who've removed it.. however it's something that puts me off buying ready prepared food.. if I can see so called fresh meat obviosuly gone off in the fridges, what are is the meat like inside a ready meal which you cannot see ?

I bought a ready made meal once about a year ago. It tasted rotten. Never again.
I'll buy frozen pizza, but even frozen "meals" fall short, imo. They're really expensive.

 

[sch404]

"As a consumer I don't generally care what they charge because my unrealized capital gains from owning the stock usually outweighs my cost of being their customer."

I don't understand the math you're using to support that statement?
In the past year - S&P 500 down 7%; Dow Jones down 2%; Nasdaq down 15% and that takes into consideration the early 2023 rally in all markets whereas prices on everything are up in the same time frame ... by a lot!
How are you ahead by owning stock in the companies you purchase goods from if you're taking unrealized capital losses on your holdings yet paying more for their products?

The reason you don't understand the math I'm using is because you are not considering the big picture. Of course stock market prices vary. Of course consumer prices vary. Each go up and down. Last year my total net worth declined by about 5%. Prices went up by a lot, too. Do I give a crap? No! Over time I win. Over time I'm ahead by a lot. It is the way of the world. Capitalism rocks!

 

[SeniorBen]

Many people are just barely getting by these days, and they're the ones hurting the most from inflation. Housing costs have gone up in some areas by more than 50% in the past few years. People are spending nearly their entire income on housing with little left over for anything else, including food. We have a homeless crisis. People are working full time and living in their cars.

Meanwhile, the rich have so much money, they're spending millions on art and other luxuries. Something's gonna give. And with AI and robots taking more and more jobs, things are going to get worse... a lot worse.

 

[jimintoronto]

Many people are just barely getting by these days, and they're the ones hurting the most from inflation. Housing costs have gone up in some areas by more than 50% in the past few years. People are spending nearly their entire income on housing with little left over for anything else, including food. We have a homeless crisis. People are working full time and living in their cars.

Meanwhile, the rich have so much money, they're spending millions on art and other luxuries. Something's gonna give. And with AI and robots taking more and more jobs, things are going to get worse... a lot worse.

OK so what solutions do you have to offer ??> Seriously, what changes would you make ? JimB.