• Teppa@lemmy.worldBanned from community
    link
    fedilink
    arrow-up
    3
    arrow-down
    1
    ·
    9 days ago

    Just look at grocery stores, grocers are down to a 3-4% margins on food, and have some of the most efficient logistics networks in Canada.

    Contrast that to the governments involvement, they did the zoning laws for the land Loblaws sits, which they essentially turned companies like Loblaws into REIT which is how it derives most its net profit. Because it was more profitable for them to deal in land scarcity and appreciate from real estate speculation due to government caused shortages than it was to appreciate from selling products.

    • SaveTheTuaHawk@lemmy.ca
      link
      fedilink
      English
      arrow-up
      4
      ·
      9 days ago

      Just look at grocery stores, grocers are down to a 3-4% margins on food

      Bullshit.

      According to the company’s 2025 annual results, Loblaw reported a **gross profit of approximately **C$20.03 billion for the full year 2025. This figure comes from the income statement summary showing:

      Total Revenue: C$63.903 billion Cost of Revenue: C$43.871 billion → Gross Profit: C$20.032 billion (i.e., revenue less cost of goods sold).

      https://ca.finance.yahoo.com/quote/L.TO/financials/

      • Teppa@lemmy.worldBanned from community
        link
        fedilink
        arrow-up
        1
        ·
        9 days ago

        Well Loblaws is a REIT as well, and I believe their margins are far higher on that, which raises top line margins.

        The REIT does well due to our government zoning policy, which has caused massive urban sprawl and extremely high commercial real estate prices. Likely also causing a lack of competition and higher prices for goods, like everything in Canada it became an oligopoly.

      • CanIFishHere@lemmy.ca
        link
        fedilink
        arrow-up
        2
        arrow-down
        1
        ·
        9 days ago

        Loblaws sells much more than groceries. Shoppers Drug Mart revenue is also included in Loblaws numbers.