Comment by mlyle
17 days ago
Just because people need a grocery store doesn't mean that you're guaranteed to make money running one.
multiplying huge revenue by a small percentage to get a big positive number
to multiplying huge revenue by a small negative percentage to get a big negative number
So that's how Kroger managed to lose billions over the last couple of quarters, or how small changes in shoplifting/shrinkage based on store makeup can cause losses to some chains, etc.
https://massmarketretailers.com/kroger-delivers-solid-quarte...
They didn't lose money because of their grocery operations. Those margins have increased slightly.
They lost money because of their grocery delivery operations.
Their margins have increased slightly if you ignore the part where their efforts at grocery fulfillment blew up.
Just because an industry is essential doesn't mean that every firm in it makes money.
I agree, all kinds of grocery stores have failed over the years. Kroger's just isn't a good example of a failing store for a lot of reasons. They aren't a stellar investment, but they are also up from 1 year ago and 5 years, so investor's don't look like they agree with your summary of the business.