Demonstrators Threaten Walmart Boycott Over Chicago Store Closures

submitted by Zapped from news.wttw.com

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[–]Zapped[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

Walmart lost money for years on their groceries just to keep people coming into the stores. I forget the average amount you spend if they can get you inside, but it is insane to me. I haven't heard what their profit margin is lately, but it may be break-even. Most grocery stores operate around 5%.

[–]SMCAB 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

Their game is squeezing the vendors. I guarantee they pay less for everything in the store, so they can afford it a bit. And still yet, they charge more for almost every name brand item in the store vs a standard grocery chain. So where's the loss happening?

5 percent isn't too bad after shrink for selling something that every single person on the planet needs daily if you think about it that way.

[–]Zapped[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

I had information from within on the losses. They accepted the losses to squeeze the competition, not the vendors. Logistics getting the produce was part of the problem. I do know about them strong-arming the vendors, too.