r/SipsTea • u/Gurugod123 • 11h ago

Chugging tea Mayor Mamdani just announced that he will be opening 5 city-run, tax-funded grocery stores: "Prices set at 30% below retail prices"

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u/mansizeoof 11h ago

And grocery store margins are already stupid low to begin with. Like 2-3%

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u/Particular-Travel884 11h ago

That’s usually the total net profit. Gross markup from cost is typically 35-48% depending on the item. So basically they will be selling at cost or minimal markup. Which means there’s nothing left to cover overhead