Black Monday

[winner69]

...and therein lies part of the issue you have Daytr. Again, glibly regurgitating others (in this case a reporter who has little understanding of economic, accounting & commercial principles) to base your entire argument on is wrought with challenge. Akin to covering your freshly dug large holes with paper mache. Back to 'Investment Banking School' for you!

Margin, Gross Margin, Mark-up, Gross Profit, Profit Margin, etc are terms often misunderstood, and hence poorly & inaccurately quoted by many.
In the case of the FMCG/Supermarket sector, add in the fact that it is so entwined in every single citizen's life and you will find discussion can become very 'emotive & politicised'.

The EBT Margin (so for your benefit Daytr - NET Earnings Before Tax as a % of Gross Revenue) for WOW (nz) & FS is generally well less than 5%.

Jeez. …so after paying tax profit margin is about 2%/3%

[alokdhir]

Jeez. …so after paying tax profit margin is about 2%/3%

If u do your shopping carefully ie on specials days then u can actually end up buying your FMCG products like deodorants, shaving creams etc at below manufacturing prices ...Supermarkets work on that no one has the patience to do that ...

PS : Here online shopping and some AI helps a lot

[clip]

If u do your shopping carefully ie on specials days then u can actually end up buying your FMCG products like deodorants, shaving creams etc at below manufacturing prices ...Supermarkets work on that no one has the patience to do that ...

PS : Here online shopping and some AI helps a lot

Make a list of your regular purchases on Grocer, shows you who has it cheapest, then shop online. This is the way
https://grocer.nz/

[bull....]

...and therein lies part of the issue you have Daytr. Again, glibly regurgitating others (in this case a reporter who has little understanding of economic, accounting & commercial principles) to base your entire argument on is wrought with challenge. Akin to covering your freshly dug large holes with paper mache. Back to 'Investment Banking School' for you!

Margin, Gross Margin, Mark-up, Gross Profit, Profit Margin, etc are terms often misunderstood, and hence poorly & inaccurately quoted by many.
In the case of the FMCG/Supermarket sector, add in the fact that it is so entwined in every single citizen's life and you will find discussion can become very 'emotive & politicised'.

The EBT Margin (so for your benefit Daytr - NET Earnings Before Tax as a % of Gross Revenue) for WOW (nz) & FS is generally well less than 5%.

gross margin at a wholesale level is probably easily 30 - 40%

[Daytr]

...and therein lies part of the issue you have Daytr. Again, glibly regurgitating others (in this case a reporter who has little understanding of economic, accounting & commercial principles) to base your entire argument on is wrought with challenge. Akin to covering your freshly dug large holes with paper mache. Back to 'Investment Banking School' for you!

Margin, Gross Margin, Mark-up, Gross Profit, Profit Margin, etc are terms often misunderstood, and hence poorly & inaccurately quoted by many.
In the case of the FMCG/Supermarket sector, add in the fact that it is so entwined in every single citizen's life and you will find discussion can become very 'emotive & politicised'.

The EBT Margin (so for your benefit Daytr - NET Earnings Before Tax as a % of Gross Revenue) for WOW (nz) & FS is generally well less than 5%.

Get a grip man.
We were discussing the mark up on groceries.
So the reported article was quite appropriate.
I don't need lessons from the likes of you of the bleedin obvious.
The returns for Foodstuffs reported is for the cooperative that pretty much runs at small profit as lion share of the profits are made by the Supermarket owners.

[SailorRob]

If u do your shopping carefully ie on specials days then u can actually end up buying your FMCG products like deodorants, shaving creams etc at below manufacturing prices ...Supermarkets work on that no one has the patience to do that ...

PS : Here online shopping and some AI helps a lot

Correct, also many items deliberately sold at a loss, 'lead loss' to entice customers to buy higher margin products.

[SailorRob]

Get a grip man.
We were discussing the mark up on groceries.
I don't need lessons from the likes of you of the bleedin obvious.
The returns for Foodstuffs reported is for the cooperative that pretty much runs at small profit as lion share of the profits are made by the Supermarket owners.

No.

We were never discussing the mark up on groceries.

We were discussing net profit margins.

You can mark your products up by 100% and still have a 1% net profit margin.

There are other expenses Day Trader apart from the cost of goods.

[Daytr]

No.

We were never discussing the mark up on groceries.

We were discussing net profit margins.

You can mark your products up by 100% and still have a 1% net profit margin.

There are other expenses Day Trader apart from the cost of goods.

No that's what you might have been talking about and it's still wrong at 2% either way.
Your response was to a conversation we were having about margins on groceries where you claimed they were 2%.
Perhaps you need to read what you are responding to before getting all high & mighty.

[Habits]

Screenshot_20230721-121214_NZ Herald.jpg

Hawkes Bay 1927

[Bobdn]

The Government would be happy with you guys arguing about supermarket profit margins. It's a nice distraction away from the actual cause of the worst inflation in decades: the Government's horrendous financial management.

In other news, My Vanguard Mega Cap Value Fund (MGV) is picking up steam. It includes producers of a ton of NZ grocery lines eg Pascall Wine Gums and Cadbury Chocolate (Mondalez) and a ton of other companies. I seriously love Wine Gums.

I also have VTV. They're very similar. No need to own both but over the years my ETFs have grown like topsy, like the number of government Communication employees.

Have a great weekend everyone. Big week next week!