271–280 of 535 posts
Yeah but what’s the alternative? Things are expensive, you’ve got to eat. I have to purchase things even if it’s affected by shrinkflation.
> Yeah but what’s the alternative? Buy a different brand? Eat something else?
This is great, shrinkflation is one of these disgusting practices that play on the human psyche to trick people. But also carrefour (and large retailers like them) are notorious for abusing their power when buying, and are a large part of the systemic problem. I don't know how much this is negotiating technique.
I don't know anything about them as a corporate citizen, but out of the (many) supermarket chains here in France I like them the best. They are not the cheapest, but the quality/price ratio is usually correct and the store branded items are very good.
Earlier quoted context omitted.
The parent is saying that these "increase in margins" are companies trying to get ahead of inflation. The media narrative has been to blame the corporations, despite the real issue being the economy. There are elections to worry about, so we can't have that. Smart businesses don't wait until they start losing money to make adjustments. They plan ahead. These "margin increases" are literally increases due to inflation…
Manufacturers trying to get ahead of inflation and ending up with record profits. How convenient. I'll buy the media narrative this time, thank you.
Earlier quoted context omitted.
Basic economics. Consumers pay for products. No matter where you increase costs or taxes, consumers pay the difference.
Basic economics say that given a certain price, you get a certain demand. And if the price rises, then demand goes down. Consumers don't blindly pay more for things when their prices go up.
In basic microeconomics, taxes, market power, and other market distortions create deadweight loss. Again, the higher price is borne by the consumer, regardless where in the supply chain/production process it is injected. Higher costs can flow through without deadweight loss, but again this is all in the static scenario.
Earlier quoted context omitted.
The parent is saying that these "increase in margins" are companies trying to get ahead of inflation. The media narrative has been to blame the corporations, despite the real issue being the economy. There are elections to worry about, so we can't have that. Smart businesses don't wait until they start losing money to make adjustments. They plan ahead. These "margin increases" are literally increases due to inflation…
Manufacturers trying to get ahead of inflation and ending up with record profits. How convenient. I'll buy the media narrative this time, thank you.
Earlier quoted context omitted.
This is a cynical move because, as the article mentions right at the top, this is just to apply pressure on suppliers before contracts renegotiations. Tesco in the Uk does not sort of stunt as well and for the same reasons. > In the UK many people rely on Food banks and parents skip meals to feed their children. A small minority, not 'many'...
A small minority of the UK can still be hundreds of thousands, even millions of people. Don't underestimate volume just because the % is low.
Also, using a food bank at least once and 'relying' on them are not the same thing.
Great idea but there’s a slippery slope problem. Report on shrinkflation packaging and companies will switch to other less transparent means (ie changing ingredients) and so this adds a bit of perverse incentive. I suppose companies already do the cost cutting, adding filler, etc… I’m a fan of just mandating price per ounce labels on everything. Stores could show current price per ounce and last year’s, no calling ou…
What makes you think that they are not changing ingredients as well, at the same time? It’s just another button they can tweak to increase margins.
If we follow that kind of logic, then we never put in place any regulation because it would just push people towards worse behaviours. A bit like when people who don’t want taxes say that it would just lead to tax evasion. In reality, there is room for reasonable regulations.
> I’m a fan of just mandating price per ounce labels on everything.
There is already a law to that effect.
> Stores could show current price per ounce and last year’s, no calling out specific brands, just make that data available to consumers on each price tag.
That would be definitely interesting. At the moment they just have to put the old price during sales.
We need laws to require special labelling with the price per net pound or price per net kiloggram clearly shown, and the previous price. Something like: $2.99/Kg (since 18/09/2023) $2.79/Kg (previous price)
Earlier quoted context omitted.
Without a doubt monetary policy has fueled inflation, but do not ignore the policies of allowing corporate mergers for the last 40 years. Lack of competition reduces price elasticity, and the end game of every monopoly is to raise prices. We are living in a world of global monopsonies, and my expectation is to contine to pay this monopoly tax for years. Worse, is it’s never been easier to collude. It used to be you h…
There are 20 different burger restaurants within 10 miles of me. Some are chains, some are local. Some use major beef suppliers, some use local organic ones. All of their prices have gone way up. There is no collusion here and this has jack shit to do with mergers. If those were the causes, inflation would have been a crisis 10 years ago.
Everyone raises prices to increase profits, increasing inflation, that increases prices further...
I don't understand why people are so happy to blame governments and treat companies, in which profit is their raison d'être, as if they're only "reacting to the government".
Of course both are to blame, but let's stop pretending companies are victims while record profits are seen everywhere (adjusted to inflation). Many (if not most) are clearly taking advantage of this exact sentiment against the government to pocket even more profit. It's not me, it's the inflation!
For those wondering if it's truly representative, it's estimated that 50% of the inflation in Europe is due to margin increase not bc of the inflation itself. https://www.imf.org/en/Blogs/Articles/2023/06/26/europes-inf...
Do not buy into that narrative. This inflationary process has been mostly driven by monetary policy. Margin increases are the result of businesses trying to navigate an inflationary period. These margin increases are not resulting in increased profits across the board (there are some notable exceptions). For example, Carrefour's profits in 2022 were about the same as in 2019. [1] From the article you linked: "Profits…