Kroger Hiked Prices More Than Needed

@#6 ... I switched to Aldis ...

Yeah, that's a curious aspect of this grocery store ~thing.~

Locally, there is a family chain Caraluzzi's ( caraluzzis.com ).

And they seem to be knocking it out of the park locally. For them, customer service seems to be the rule. I mean, when an owner of the company starts bagging your groceries to keep the check-out lines moving, well, I just do not see that in the Krogers or the Aldis or ...

And, yes, that has occurred multiple times, in my experience.

Here is a link to a report on Kroger's leadership's public statements and financial disclosures regarding their sales and profit numbers during the pandemic.

Just peruse it and you'll find they self admitted to Wall Street precisely what they were doing to counter the covid-caused inflation that enabled them to set a quarterly record profit while they almost bragged about getting more money from their customers than previously. The details are all in business speak, so don't miss the forest for the trees. But there should never be any doubt that our corporations number one goal is to increase profits, so however that can be accomplished is viewed as a win by them and their shareholders with little regard to how it might affect their customers as long as what they're doing doesn't drive them away.

I order my groceries omline and have them delivered so I like it thay Aldis uses Instacart where I have a membership and fet free delivery on orders over $35.00.

@#8 ... Here is a link to a report on Kroger's leadership's public statements ...

Whoa.

The predatory comments upon Krogers' customers in that statement are, well, wow.

No wonder the FTC is trying to rein them in.

Major kudos for protecting consumers to the FTC in this instance.

Predatory.

Yeah, that seems to describe Krogers management, as expressed in their own words.

Kroger's net profit margin is right around 2%.

Just stop with this nonsense.

@#11 ... Just stop with this nonsense. ...

What nonsense?

The Kroger execs who seem to be saying they are exploiting their customers?

That nonsense?

And, as a corollary ...

If Kroger is only able to maintain a 2% margin, as your current alias asserts without reference (quelle surprise), what does that say about the management of Kroger?

And why should, then, the FTC allow such an apparently poorly managed company to gain even more of of a lock on the groceries we buy?

Two. Percent. Net. Profit. Margin.

This is so ridiculous.

"Two. Percent. Net. Profit. Margin. "

You forgot the salient part.

Here are Kroger's Stock Buybacks.

May 31, 2024. $146.55M.
Jan 31, 2024. $8.41M.
Oct 31, 2023. $8.98M.
Aug 31, 2023. $48.85M.
May 31, 2023. $69.94M.
Jan 31, 2023. $9.07M.
Oct 31, 2022. $12.27M.
Aug 31, 2022. $352.81M.
May 31, 2022. $731.22M
Jan 31, 2022. $599.36M
Oct 31, 2021. $298.64M
Aug 31, 2021 $392.30M
May 31, 2021. $420.17M
Jan 31, 2021. $335.97M
Oct 31, 2020. $321.70M
Aug 31, 2020. $298.15M
May 31, 2020. $431.84M
Jan 31, 2020. $431.83M
Oct 31, 2019. $12.19M
Aug 31, 2019. $37.20M
May 31, 2019. $20.19M

Notice anything regarding Covid?

@#13 ... Two. Percent. Net. Profit. Margin.

This is so ridiculous. ...

I'll ask again...

What is ridiculous about Kroger execs being able to only obtain (as your current alias asserts without substantiation) a 2% profit margin when they seem to admit that they have price gouged their customers?

@#14 ... Notice anything regarding Covid? ...

Ya know, you are starting to become annoying with your focus upon facts.

And I thank you for that focus.

Notice anything regarding Covid?

Bought a lot of stock with that Covid relief cash, didn't they?

If this were true, the simple fix would be to stop buying groceries at Kroger.

Price gouging is how Kroger got the money to buy Albertson's.

"Yup, Kroger can, and apparently did, raise their prices to and even past the point of greedflation. Which is why the FTC is looking out for consumers, and trying to block Kroger from getting even more of a footprint across the Country and subjecting more consumer to their apparent price gouging policies."

Dude, I really like you. I just wish you knew economics.

There is no such thing as "greedflation." Not really. I could "gouge" my employer and tell them that they needed to pay three times my going salary if they wanted my labor. Who knows...maybe they would. But far more likely is they would not buy my labor, and instead buy it from someone who is charging less.

It's the same with grocery stores. And more accurately, it's the same with commodities.

Whole Foods charges far more than Kroger. FAR, FAR more. Should they be regulated under the same concept as well?

"If Kroger is only able to maintain a 2% margin, as your current alias asserts without reference (quelle surprise), what does that say about the management of Kroger?"

It's the industry writ large. I posted something on this a few weeks ago IRT Harri's price-gouging control plan.

2% is actually really good. Most grocery stores range ~1.5%. They're basically dealing with commodities, so they don't have much room for product differentiation. The exceptions being chains like Whole Foods or Trader Joes.

I see that the imaginary Free Hand of the Market is stroking MB's ------- again.

Inflation rose 14% during a national emergency but corporate profits rose 74%?

Yeah. I'd say that needs to be investigated.

#20 | Posted by madbomber

So replacing a grocery store is as easy as replacing an employee?

My area has 15,000 people with one grocery store. The next nearest is 30 miles away and tiny.

It's the industry writ large. I posted something on this a few weeks ago IRT Harri's price-gouging control plan.
2% is actually really good. Most grocery stores range ~1.5%. They're basically dealing with commodities, so they don't have much room for product differentiation. The exceptions being chains like Whole Foods or Trader Joes.

#21 | Posted by madbomber

This I'm with you on.

I worked in a grocery store during college. If we were pulling a 2% average, the execs would be getting huge bonuses and new cars.

If this were true, the simple fix would be to stop buying groceries at Kroger.

#18 | Posted by lfthndthrds

This dolt doubts something is true even after the perpetrator admits it.

Were you aware that fox news admitted they intentionally lied to you about imaginary election fraud?

Huge industries love to express their profits in percentages rather than actual amounts.

It makes them look like they are barely surviving on small amounts, when actually they are gouging customers given their huge profit amounts.

If this were true, the simple fix would be to stop buying groceries at Kroger.
#18 | Posted by lfthndthrds

If the proposed merger happens between Kroger and Albertsons, two companies (Kroger and Walmart) will allegedly control distribution of about 70 percent of the groceries sold in the US. How is it going to matter where you buy groceries anymore when there is practically no competition? Some "free market"!

Did they raise prices beyond their customers' willingness to pay?

#29

Perhaps it would be better if you asked: -Did they raise prices beyond their customers willingness to eat?-

This dolt doubts something is true even after the perpetrator admits it.

Were you aware that fox news admitted they intentionally lied to you about imaginary election fraud?

#26 | Posted by SpeakSoftly at 2024-08-29 01:37 PM | Reply | Flag:

Hey Dumbass, you can only gouge people who are willing to participate. Were you stupid enough to give your money to Kroger's? Anyone who doesn't do their homework on pricing deserves what they get for blindly handing over their money.

Anyone who doesn't do their homework on pricing deserves what they get for blindly handing over their money.

#31 | Posted by lfthndthrds

Yes single mothers and dads working 3 jobs should spend their time researching grocery story profit margins instead of getting sleep or caring for their children.

Republican values - rip off the working class as much as possible, and make it their full time job to avoid your scams or else it's their fault.

Why do people need to work three jobs? Kamala told us Bidenomics was working.

#33 | Posted by visitor_

You're right. Until biden came along no one ever struggled and it rained free gasoline from the sky.

and it rained free gasoline from the sky.

Thank God Biden put a stop to that.

Between the gasoline rains and unraked forests, California wildfires were out of control.

Why do people need to work three jobs?

It's a combination of Republicans constantly voting against raising the minimum wage and Republicans constantly voting to give the wealthy tax cuts.

Sometimes I wonder whether you've ever lived in America. Based on the majority of your post, you seem clueless

the simple fix would be to stop buying groceries at Kroger.
#18 | Posted by lfthndturds

Considering Kroger is the biggest chain of grocery stores in America. Considering in some places access to grocery stores are extremely limited. Your "solution" doesn't seem well thought out.

Much to no one's surprise

Keep swallowing your ivermectin.

Anyone that does grocery shopping on a regular basis will eventually learn which store has best prices, best deli, best produce, etc.

Foe example, Whole Foods is also called Whole Paycheck.

Anyone that does grocery shopping on a regular basis will eventually learn which store has best prices, best deli, best produce, etc.

#38 | Posted by visitor_

Republican logic "everyone else should live their way I do or else they're doing it wrong"

This is the first time I've heard that value shopping is only for Republicans.

Anyone that does grocery shopping on a regular basis will eventually learn which store has best prices, best deli, best produce, etc.

Maybe. Sometimes you don't have the option to driving 60 miles to purchase food that hasn't been overpriced.

You just sound like a spoiled, entitled person living in a city.

- a spoiled, entitled person living in a city.

One of the below is the ID Pic from Visitor's Profile:

media-cldnry.s-nbcnews.com

Nearest town of any size(population 9800) is 28 miles away.

Whole Foods here is cheaper than Publix for frozen vegetables. You have to divide the cost by the weight to find out because Publix has 10-12 oz bags, Whole Foods has 14-16 oz bags. The produce is also better and priced lower in general, or slightly higher for some things. Publix, however, does BOGOs, so for those items it can be cheaper.
Fish and meat, I prefer Whole Foods, hands down.
The generic organic staples are also cheaper at Whole Foods.

I keep two lists, one for WF and one for Publix.

I'm probably one of those spoiled people Clownshack was talking about... ;-)

You use math to determine the best value? That's racist.

I'm probably one of those spoiled people Clownshack was talking about... ;-)

So am I.

I have two Ralph's, a Jon's market, two Vallartas, a Whole Foods, Amazon fresh, Aldis, a small Russian market, a few Iranian markets, a Jewish deli, an Italian market, a Korean market ... all within 15 minutes or less from my place.

Definitely spoiled with options.

That sounds wonderful!

I'm definitely not mad at it.

I hear of places being food deserts and it sounds horrible.

Definitely spoiled with options.

Must be nice. I have one store that is usually about 80% stocked. Other than that, it's at an hour trip to another store that's not much better.

bUt KrOgErS iS tHe OnLy sToRe iN tOwN!!!

As long as they don't collude with all the other stores they can charge as much as they want... Who bitches when Whole foods sells $25 dollar chickens?

Bunch of broke right wingers defending rich right wingers' ability to rip them off during a pandemic.

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Kroger Egg Pricing Turns Merger Trial Into Inflation Fight

I don't think this merger should be approved, but for reasons very different than mythical "gouging" of their customers.

If all FTC lawyers have is that on a given day/week at a given location/region on a given food item (eggs) the prices haven't been lowered "enough," when Walmart lowered it by $0.14 [more], then they are only making Kroger's case for merger and should be laughed out of court... so I hope FTC will bring real, much better and less "populist, sensational" arguments. What about days/weeks when Kroger had average egg prices lower than this or other grocers in the area?

Kroger has more than 2,400 grocery stores which typically carry over 45,000 SKUs, over 40 manufacturing plants, and 17 regional retail divisions, with buyers guided by Kroger's Merchandising Group (KMG) in Cincinnati about regional demographics and preferences, to ensure that those products are always available in local stores.

Inflation always causes "record profits" in $ terms, not the other way around - don't need MBA to understand why:

libertystreeteconomics.newyorkfed.org - What Was Up with Grocery Prices? July 16, 2024

|------- New York Fed analysis - written before Harris' "anti-gouging" comments - showed rising profit margins aren't to blame.
Research by Thomas Klitgaard, PhD, laid the blame on two factors.

One was the huge spike in agricultural and livestock prices. "... grocery prices seem to only respond noticeably when commodity prices make big moves, like the jumps in 2008 and 2011 and the collapse in 2015. The rationale is that there are many other input costs dictating food prices so it takes unusual swings in commodity prices to affect grocery prices."

... Part of the reason was Russia's war against Ukraine, which hurt fertilizer supplies as well as wheat supplies.

The other factor behind the surge in food prices was the large wage increases for grocery workers. Since 2019, industry wages have risen by 15 percentage points more than those in the food-manufacturing sector, or than the workforce as a whole.

... "... significant moderation in food inflation since the start of 2023 is due to still-high wage inflation for grocery workers being offset by the retreat in commodity prices."
-------|

Stock buybacks are just good money management by CFOs - market interest rates were near 0% due to Fed's NZIRP QE, so most profitable companies were buying back stock because it provided higher ROR than cash "in the bank." Buybacks with profits they couldn't reinvest in products or expansion were giving them (and shareholders) >3% after-tax ROR instead of near 0% (if not negative) in cash.

Warren Buffett's Berkshire-Hathaway routinely buys back stock when it can't invest cash more profitably, and to shrink the "natural dilution" - does that mean all the companies who buy back stock are "gouging" their customers and/or engage in "predatory" behavior?

Look at the pitiful condition of so many "dollar stores" or any but the largest "discounters" (Walmart or Target) who have/had much higher margins than Kroger (lowest in the industry at GM 20% / NM 1.4%):

99c Stores (40% / -7%) is bankrupt and closed more than 300 stores (170 of them were acquired by Dollar Tree),
Big Lots (33% / -10%) was worth more than $2B in 2021 but will soon go bankrupt and shut down about 1,400 stores,
Dollar Tree is shutting down 1,000 stores ...

... while Target and Walmart bought up the inventory and use targeted discounts and loss-leaders to pick up "dollar stores" share of growing number of "downsizing" penny-pinching middle-class consumers, hit by inflation and high level of credit debt.
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