Newsgroups: ont.general
Path: utzoo!utgpu!radio.astro!me!rwh
From: rwh@me.utoronto.ca (Russell Herman)
Subject: Re: Supermarket shakeup?
Message-ID: <89Nov5.163837est.18444@me.utoronto.ca>
Organization: U of T Mechanical Engineering
References: <1989Oct28.204533.16975@telly.on.ca> <1989Oct30.172945.18436@eci386.uucp>
Distribution: ont
Date: Sun, 5 Nov 89 16:38:22 EST

In article <1989Oct30.172945.18436@eci386.uucp> woods@eci386.UUCP (Greg A. Woods) writes:
>
>The grocery business works (primarily) on a 2% profit margin.  That

I've heard this number bandied about, and frankly, I find it heard to believe.
I can go to St. Lawrence Market and get better and cheaper meat and vegetables,
and then to my neighborhood "superpharmacy" for cleaning supplies and package
goods for less than chain grocery outlets.

Does this 2% include just the retailing profit, or does it include the
vertically-integrated portions like dairying as well?  2% of gross revenues,
or assets (including farmland)?  Anyone know the details of the food-processing
business and the relevant GAAP?  Is this an accounting trick or another
urban legend?

Russ Herman
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