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Selling Butter At 54% Profit: Leaked Docs Show Loblaws’ Exorbitant Markups
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Selling Butter At 54% Profit: Leaked Docs Show Loblaws’ Exorbitant Markups
Recently leaked documents posted on Reddit have shed light on the pricing practices of Loblaw Companies’ (TSX: L) flagship grocery chain Loblaws, revealing exorbitant markups on everyday items such as butter, cheese, and spreads. The documents, purportedly an invoice from Loblaws to a No Frills store, highlight significant profit margins, raising questions about fairness and transparency in retail pricing.
At the center of the revelations is the Gross Profit Margin (GPM), a key metric in retail indicating the percentage of revenue that exceeds the cost of goods sold. In this case, the leaked documents reveal GPMs as high as 53.75% for President’s Choice Unsalted Butter Alternative, suggesting a considerable markup on a staple grocery item.
You can read more on the matter here.
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FULL DISCLOSURE: PharmaDrug is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of PharmaDrug. The author has been compensated to cover PharmaDrug on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.