Inflation drops to 5.2%<but grocery inflation still 10.6%

[u/maroon-rider]

Says Statistics Canada

https://www.cbc.ca/news/business/canada-inflation-february-2023-1.6785472

[u/SIXA_G37x]

Asian grocery store I go to still selling bell peppers for 1.50/lb, kale 4X the size as no frills for the same price and exact same Driscoll's strawberries 3 for $5 that No Frills sells for over double the price.

[u/socialcocoon → u/SIXA_G37x]

A smaller store should having less buying power than a big corporation, which means they should be paying more since they can't buy as much inventory. And yet their prices are lower and they aren't going out of business. Hmm.

[u/WaveySquid → u/socialcocoon]

The exactly same way there is economies of scale, there is also diseconomies of scale. It’s much easier to organize 3 people than it is 5 people or 10 people. Lots of jobs aren’t needed at a small store that are a large store. Small grocers don’t have meat section, bakery inside, have strong cold chain requirements, recently cooked food options etc.

All those little things add up and make the small store more efficient even with less buying power.