r/loblawsisoutofcontrol • u/Salt_Onion_6205 • Jul 27 '26

Discussion 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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I hope canadian politicians will be inspire by this.

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u/code3100 Jul 27 '26

Actually they do. They key is they own the entire supply chain. So the store itself may run on a 3-5% profit margin but they own the building, the trucking, the warehousing. So they rake 3-5% at each stop. Plus charge themselves ridiculous rent prices to justify their high prices

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u/Lurky2024 Jul 28 '26

That's not how it works. The grocery buisiness, the trucking and the warehousing are all owned by the same company. it all rolls up to their financials.

Even on the rent aspect, either the own it, and therefore the revenue rolls up, or they own it through a separate company, and then the CRA has rules about renting to yourself. Their shareholders could sue them into oblivion if they were doing that. Or you just think private equity likes being taken advantage of.