Supermarkets are the worst, farmers and suppliers get paid peanuts in comparison to the profit margins made by the big chains.
Considering they are essentially a shed selling manufactured branded items and own label lines - Supermarket margins are fantastic. Not to mention supplier and manufacturer support funding basically nothing other than shelf space and advertising.
Certainly their profit margins are better than those of most of their suppliers. That doesn't falsify my previous point.
I wasn't comparing its profits to other business sectors though, I was comparing how much the corporation makes in comparison to what it pays its farmers and suppliers, the actual amount of profit is irrelevant.
In my experience supermarkets have some of the best margins in any industry, for what they do. You implied they had low margins.
Single figure profit margins are amongst the lowest in business. Most low volume businesses would fold in weeks with such margins. They succeed due to volume, much like wetherspoons.
We're talking about two different things. The retail margins on stuff they sell in stores will be 30-40% minimum. The fact they only see 5.2% after all other overheads illustrates their business inefficiency more than anything else.
