Mercado Central Purchases 40% Less

[Dublin2BuenosAires]

Meat is better quality at my butcher than any supermarket, cheese is better at the fiambreria than any supermarket. Veg is a mixed bag, fruit too. At least the selection is not better in the supermarkets, sometimes the quality is up and down.

I'd love to see Sencosur go out of business. Through their dairy arm they have crushed quality produce in the region, not just Argentina.

I don't see the price of cost benefit in the supermarket personally for meat, dairy and poultry. Only convenience. Veg is "mas o menos" and variety is limited.

 

[Dublin2BuenosAires]

So you believe super markets have a 100% net profit margin?

I believe they are not keen on publishing Argentina specific P&L.

Why? It would kill this argument pretty quickly.

 

[Rich One]

So you believe super markets have a 100% net profit margin?

100 % OR More according to Matias jijiji . All chains worldwide must be enviuos and willing to participate in this market

 

[PhilipDT]

Why is that?

Because most of them are terrible and they represent a giant inefficient use of resources. They generally carry less products of lower quality and charge as much as you pay in a supermarket. Almost none of them have air conditioning and in the summer all of their products are left rotting and covered in flies in the summer heat.

Now this is not to say that I'm against small comerciantes. I actually go quite a ways out of my way to buy my meat in a specific carneceria which involves me walking past at least 3 others to get to. There are 2 great verdularias in 2 blocks on juramento. I will walk past dozens of the normal verdularias to get to them.

If you haven't been to Zucchini in front of the Belgrano C train station yet, you should check it out. It is a massive leap forward in what a verdularia should be. Tons of aromatic herbs, Brussels sprouts, orange, brown and yellow cherry tomatoes, oyster mushrooms, shitakes(normally), portobellos, asparagus, and more! Not to mention everything looks good, there is none of the bruised rotted crap that you see at most verdularia. The place is air conditioned, the prices are very clearly labeled and you get a itemized receipt with weight and price, you can pay with a credit card and so much more. All of this and to top it off, it's noticeably cheaper than buying at your local verdularia

 

[Rich One]

from what I saw, the gain of the supermarket chains lots of times is over 100%. 100% of gain!!! remember, APART from costs, once they covered their costs, the gain they have is more than 100% in most cases. In their home countries, chains like carrefour gain less than 30%!!

Please, do me a favor and listen to this:

https://www.youtube....h?v=svSjIEPf4fw

https://www.youtube....h?v=3INs0GByyj4

https://www.youtube....h?v=4uFi_b1xZFo

Roberto Navarro IS NOT an economist and it shows...!!! .. All his charts shown in the Program read at the bottom: Source prepared by C6N research Team!

According to Navarro for a sachet of milk the total cost for all concepts from la Serenisima to the Shelf of the supermarket is Only 1.5% Imposible.

You speak of Gain ? What is Gain for you? Is this net profit after all operating costs, overheads, reserves and taxes in the home country of the Chain?

I'm only questioning the figures not if profits are reasonable but over 100 % net seems on the HIGH side.

 

[PhilipDT]

So you believe super markets have a 100% net profit margin?

I mean obviously.....

 

[Matiasba]

Rich One with fruit and vegetables the supermarket, accorrding with navarro, gain more than 1000%. With a broom, as he said, 2000%. Lemon cost 5 pesos kilo and they sell it 30.
I believe him, especially when he says that inflation is explained by the economic policies of this government, but not only by that. Theres also "abuso de posicion dominante", I think this is true.

 

[Dublin2BuenosAires]

So, in 2013 they made a margin of 30% in Argentina and a margin of 22% in Brazil

How much have their real costs risen since then since wages have not been negotiated yet ? Are we to believe that cost to consumer increases are in line with the supply chain cost increases?

If anything your figures show that there is capacity to absorb price increases rather than pass them on to the consumer and then some. Of course, nooooo wayyyy the industry is involved in price fixing to stop this happening.

If it was an even pitch, one company would surely sacrifice % off that already very healthy margin to grow sales no?

 

[Matiasba]

The supermarkets killed the smaller business both here and everywhere else in the world for a reason. People like do most of their grocery shopping in one place, not to mention people really like to do their grocery shopping in one place if that place has better selection of higher quality products at the same or lower prices.


I've read so many odes to the verdulerias of buenos aires on baexpats. I can't wait for most of them go out of business.

You can google, I guess you ll find the way Wall Mart establishes everywhere and what they doi. They start subsidising and selling very cheap, cheaper than every competitor to make them out of bussiness. Then, when they have killed them all, talking of the small competitors, they can sell you in whichever price they want.
In Argentina used to exist a loot of groceries stores, small bussiness, traditional, weel known in the neigbourhood, pintoresque characters of the neighbourhood, people that sold on credit because they knew you. It was like an all middle class scenario, their sons used to go at the same public school than your sons, barrio interaction. But then this huge chains arrived and broke that. They concentrated all the money, they destroyed 750,000 jobs. They changed the barrio forever. Now people shop in these chains not because they preffer them but because there are almost no competitors (except, of course, another chain). They broke the ecosystem.
In civilised countries they protect these little stores, they get subsidios, I dont know, Im thinking of bread and cheese in France, you dont buy it a carrefour but in little stores. They are much more protected, they dont have this chain penetration. They still shop in small stores.

 

[Matiasba]

I mean obviously.....

so you believe you will find this information on the web?

I trust more Navarro than what they would declare (if it is that) on the web.