| These Numbers Tell a Different Story Here too the original claim by "The Other 98%" falls apart. In Kroger's latest earnings release, it reported a decrease in operating income from $4.16 billion to $3.12 billion. That's a significant reduction of 25%. Publix also saw a reduction in operating income from $4.76 billion to $4.47 billion - a decrease of 6%. In other words, the amount of money Kroger and Publix are making from their actual business operations has fallen. So no, grocery chain greed is not the TRUE cause of inflation. In fact, Kroger and Publix have seen significantly less profits due to inflation, despite higher overall sales. And the truth is, grocery stores are some of the least "greedy" businesses in the world. Their profit margins are razor thin. Publix, for example, has seen inflation reduce their profit margin from 8.7% to 7.8% in 2023. That means for every $100 you spend at Publix; the company keeps just $7.80. That's about the same amount the government takes just in sales tax. For Kroger, it's even worse... Inflation pushed their profit margin down from 2.78% to a paltry 2.06%. Kroger only keeps $2.06 per $100 spent at one of its stores. That's miniscule. Why are profit margins so low? Well, that's the beauty of our capitalist system. The truth is grocery stores cannot simply raise prices and increase their profits. They have too many competitors who would be willing to undercut them and take their business. In our capitalist system, all transactions are voluntary. If Publix increases prices too high, consumers will go to Albertsons, Walmart, Winn-Dixie, The Fresh Market or dozens of other options. This keeps profit margins low. And so, inflation only rises when supplier prices all rise together due to outside conditions. Fact or Fiction? So is the claim that "corporate greed is driving inflation at grocery stores" a fact or fiction? I rate it fiction with a capital F. But there is a happy ending to this story… sort of anyway. After a few days, "The Other 98%" had to change the post to explain that it was indeed false and misleading. Here's what the post says now... It's nice to see the truth come out. But there is a problem here. A big one. Notice that while the initial post had 10,000 reactions, the current post with the truth had only 7. The false story gets promoted and the true story gets buried. This is the problem with the media in this country. Sensationalism and tribalism get the most attention. Our goal here at The Oxford Club is to give you the facts and let you come to our own conclusions. And with that in mind, I'll end with one last fact. If you're looking for an explanation of the sudden spike in cost of living, look no further than this… The last 5 years have contained 4 of the 5 biggest deficits in U.S. history. We've borrowed more money since 2020 than at any time in history. If you're looking for somebody to blame for sudden spikes in your cost of living, you may want to look away from your local grocer... and cast your glaze directly toward the folks in Washington, D.C. Good investing, Todd P.S. If you have any internet posts you'd like for me to feature in a future "Fact or Fiction" column, simply drop me a line right here. | 
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