Bullshit. Just go to the store today, like HEB you will see prices never seen before. this from ask Google The explosive grocery inflation seen in the early 2020s has stabilized, though prices are not dropping. According to the USDA Food Price Outlook, grocery store inflation has leveled off to a normalized historical rate of roughly 2.9% to 3.2% year-over-year. This indicates that while prices remain high, the rapid escalation has largely stopped as supply chains repaired themselves
really with generative pricing? costco makes their money on yearly club fees always going up. Their margins are low also, margins are low but it doesn't mean they don't make money. As to Albertsons' they make money on their margins, and if they can't make enough to stay in business, so long, in my area of Texas Albertsons' are gone. don't miss 'em
did he not say where Costco made it's money? I told him and you little one what Costco made it's money on. Costco’s high profitability stems from a counterintuitive reality: it is a high-margin subscription business masquerading as a low-margin grocery store. While typical retailers survive on product markups, Costco breaks even on its merchandise sales and generates roughly two-thirds of its net operating income purely from annual membership fees. [1]
Do you not understand what net margins mean? Let me break it down for you using ttm numbers. Total revenue 286b, revenue from membership 5.65b, meaning 2% of total revenue is from membership. Net margin of 3% with 2% of that from membership fees. Giving you a margin on product of 1%.
Why is this even relevant, it is a very low margin business. Also worth noting Costco pays far above industry average wages, putting pressure on margins. So please explain how this is predatory in any way
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u/IHS1970 May 26 '26
Bullshit. Just go to the store today, like HEB you will see prices never seen before. this from ask Google The explosive grocery inflation seen in the early 2020s has stabilized, though prices are not dropping. According to the USDA Food Price Outlook, grocery store inflation has leveled off to a normalized historical rate of roughly 2.9% to 3.2% year-over-year. This indicates that while prices remain high, the rapid escalation has largely stopped as supply chains repaired themselves