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A comment on UK: Food inflation rises to 18.2% as it hits highest rate in over 45 years. Parent comment

Re:UK: Food inflation rises to 18.2% as it hits highest rate... by ch4s3 on Friday March 24, 2023 @12:13PM (#35291206)
Those are nominal profits, everyone is trying to take "an extra cut" to stay ahead of inflation. Grocery has razor thin margins to begin with and the usual direction of prices is downward. Inflation will absolutely put a grocer out of business if they can't stay ahead of rising prices.
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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by Wildgoose on Friday March 24, 2023 @01:06PM (#35292124)
Wholesale margins are razor thin, but retail ones are relatively fat. (I work in Wholesale/Retail software).
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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by bpicolo on Friday March 24, 2023 @01:41PM (#35292751)
Unit margins, or operating margins?
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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by ch4s3 on Friday March 24, 2023 @01:45PM (#35292848)
After tax profit margins for grocery retailers in the US range from 1-3%, some places like Whole Foods approach 5%. Gross margins are higher, but net margins are what determine whether or not you go out of business.
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