Labour are totally ignorant if they think supermarkets are rorting massive profits. Try reading annual reports and you get a different picture.
What’s interesting about the supermarket business is that the NZ market is the most fiercely competitive in the world.
NZ supermarkets operate on profit margins of 3-5% yet in Aussie it’s more like 12-16%.
Just look at the returns posted by Foodstuffs and Progressive Enterprises parent Woolworths. Both posted profit margins of around $250-280m on turnover of 5.8-6b which is around 4.5-4.8%.
Most major corporates post far bigger profit margins. Take Fletchers. Its margin from supplier subsidiary companies has cruised along at $130-140m per annum margin from turnover of 700-850m which is double digit.
ASB bank posted a margin over $1 billion. How about dealing to banks before supermarkets?
The lists of companies that are in double digit margins is long.
Supermarkets are certainly not in that camp. Very low margins on enormous turnover.
Labour making spurious claims about people being ripped off is nothing more than ignorant and stupid. Only a dumbo says such stupid things. We surely don’t want someone like this running out country when they can’t even deduce margins from reading annual reports.
Then when you match up their living wage proposals against supermarkets who employ a fair chunk of people in low wage brackets then you see the margins erode even further.
It is the politics of envy based on stupidity.