New York City Mayor-elect Zohran Mamdani has said city-run grocery stores are an opportunity to address affordability and to give the public a choice.
  • BombOmOm@lemmy.worldEnglish
    25·
    8 months ago

    Beat out other grocery stores so prices drop to compete.

    Grocery stores operate on extremely thin margins. There isn’t much to cut either for the private store or the government store.

      • BombOmOm@lemmy.worldEnglish
        52·
        8 months ago

        Kroger’s revenue is $150B, with a net income of $2.3B. That is a profit margin of…1.5%. One-point-five percent profit.

        As I said, grocery stores operate on tiny margins. There isn’t much to cut either for the private store or the government store.

        gross margin in 2024 was 22.3%

        Gross margin is not profit, it only accounts for direct costs of the goods being sold. Hence why their profit is only 1.5%.