World News

All grocery store margins are tight. Historically, grocery stores are not enormously profitable. Most of the price gouging that you've seen in food lately has been at the manufacturer level, not the retailer level. That's why you don't see a lot of price difference between substantially identical items at different stores in the same region; the same size box of Cheerios is going to have roughly identical pricing at both Piggly Wiggly and Kroger. You start seeing price differences when you go to an upscale store like Amazon's Whole Foods (prices go up sharply), or when you're buying in bulk at Costco or restaurant supply stores (such as Gordon Food Service). That's also why you see self-checkouts everywhere now; once one company cuts their labor costs by introducing them, everyone has to, because otherwise they can't remain competitive. ...And then prices stabilize across the industry at roughly the same very slim margins. The company that cuts costs first sees a slight initial uptick in profit, and then competition forces them to cut their margins back again.

At the store level, there's not a helluva lot that can be done. The obscene profits are farther upstream.

See this as an example. Grocery stores are making profit in volume, but not a lot of profit per item. Typical margins are 1-3% per item. That means that, if you cut off every single bit of profit that a grocery store makes, your $200 worth of groceries would cost you... $198. Maybe as little as $194. Saving you a whopping $2-6. But when you have hundreds of transactions each day, that 1-3% per transaction adds up to profitability for the store.