Tesco profits

[JamesWales]

I’m not a fan of Tesco. I don’t like their stores, their meal deals or their clubcards. Shirley Porter’s big council house sell-off for votes still rankles.

However they are making about 3p profit on every £1 of sales. That is not a rip-off or profiteering. Prior to the pandemic most supermarket chains made 2-4% profits on revenue before tax and that had been the case for decades.

Selling food is similar to selling fuel for vehicles. It’s an absolute necessity and if your prices are a bit too high then the consumer will shop elsewhere. That’s why margins are so low compared to, say, tech. Apple, for example, makes annual profits of around $170 billion on sales of $380 billion.

Hard to argue with that really.

[jon1959]

Hard to argue with that really.

Try.