mia 水明
@miawintam
NYC prices actually send me into orbit Why are the more low-mid tier grocery store chains often now more expensive than more premium groceries like Whole Foods? This is the local grocery (very minimal organic foods, produce) by me in Brooklyn and I’m constantly astounded by their prices.
4 replies
0 recast
11 reactions
Thumbs Up
@thumbsup.eth
Whole Foods has economies of scale, is owned by Amazon which backstops their lost leader strategies, and signs leases on massive buildings no one can compete to lease for decades at a time. Small grocers buy small quantities and pass their higher costs on to you, they pay a higher portion of their total income in rent/property upkeep, and can not employ lost leader strategies. tl;dr big box stores (even premium ones) will always be cheaper because they externalize costs
1 reply
0 recast
1 reaction
mia 水明
@miawintam
Ahh yes thank you. Everything does comes back to who owns the property doesn’t it? those who can buy out the real estate controls the terms everyone else has to play by
1 reply
0 recast
1 reaction