Trying to sell a box of cereal for $6.99 isn't going to improve things.
Food prices have skyrocketed lately and for some reason they aren't even being discussed in the media.
$4.99 for a three pack of microwave popcorn?
Are you kidding me?
Can someone explain the "hyperlocal" strategy to those of us who are a little thick? Does that mean that I can buy my local university's merchandise at my local albertsons for twice the price that I can buy it at my local wal-mart?
I guess I'm too dumb to get this strategy. It seems like to me that for 90% of americans its all about price.
There are 212,000,000 outstanding shares of SVU. There are 142,000 full time employees. This means that if each employee owned only 1,500 shares each they would own the company. This sounds like a lot, but dividing this up among the years of service of the employees and it would be a rather small investment per employee and you would own the company.
Think about it. You would enjoy all of the profit and there would be no zillion dollar CEO.
You don't need a union to help you get a pittance. Your union leaders get a bigger pinch than you. My son works for a company that has done this. He now makes a very good salary plus profit sharing. He expects to have several million dollars in his retirement account.
I agree there is a great spread between labor and mgt. And, I agree with you but we are talking about 2 different things. The salary and benefits of management is a big sore spot with me. Management belongs to the owners of the company, in SVU's case the stock holders. I believe the owners have laid down on the job of taking care of their interest. It is rediculous that mgt such as the CEO and upper mgt receiving millions of dollars in salary, benefits and bonus. These benefits are doled out by the B of D's to upper mgt. In my opinion there is great collusion between these two, probably fraud.
Remember, the B of D's is recommended by mgt and most influnencial in their seating. Who do you think has the biggest hand in appointing upper mgt, the B of D's?
The stock holders are being deprived of a much higher dividend because of extreme high mgt benefits that in my opinion are unjustified.
If employees of any company were smart, they would buy company stock and in a short time own the company and enjoy all the profits. Think about it.
I agree unions aren't perfect. When they make work rules that say stockers can't man the register just to keep union membership high, they create terrible inefficiencies that make companies uncompetitive and drive up costs needlessly. However, when they fight for a higher percentage of earnings, particularly when linked to executive pay, I think they provide a great service.
I realize the unions are out of favor at the moment, but that may be one of the reasons the American worker is getting shafted while executive pay is skyrocketing.
Thanks for having a reasonable dialog without resulting to ALL CAPS or name calling.
Your first 2 points are well taken. No. 3 does not hold water. Minimum wage is a farce. Ford DID indeed realize that the best way to get and keep good employees was to pay a fair wage. Very smart. But, having the gov't involved in dictating wages is most detrimental to a good economy. Wages should be an agreement between employees and the company.
Think about it. What does Minimum Wage do? Sad to say but it causese: 1. increase in the cost of living. 2. increase in taxes. 3. Reduced employment. and 4. increases the number of poor people. Again, think about it.
You must be a big supporter of SVU employees which are all union members. Now ask yourself what good does the union there do? If you look real hard the above 4 reasons apply to unions.
When your employees get big increases in wages, what must the employer do to compensate the cost of doing business? The who pays for these benefits? Customers.
-a retired ex union member and an organizer.
Long - My point is that some people, myself included, are willing to pay a bit more for food to 1)not get sick from food poisoning (which costs money), 2)have clean water to drink and clean air to breathe (don't have to buy bottled water which saves money)3) Support a decent minimum wage. Henry Ford realized that the best way to increase profits was to pay his workers enough money so they could buy his products. Reducing minimum wage may be a good way to hire some high schools students, but is not right for building a strong economy. Increasing consumption is the best way to create jobs and increase profits.
How brilliant. Your 4 reasons are 100% correct. Costs are all tied to production. You want lower prices? Then get rid of Idiotic gov't rules and regulation. Get rid of EPA. Generate the cheapest electricity. Get rid of minimum wage and unions.
All of the above causes: 1. increase in the cost of living. 2. Increases taxes. 3. reduces employment. 4. creates more poor people.
Only idiots believe you can have inexpensive food if you want all of the above.
How about $5.69 for a 18 oz.container of Jiff peanut butter.I can drive 5 miles down the street to Winco, same purchase would cost me $1.76. I'm certain the cost savings would cover the fuel expense.This is one item people, I could compile a list of goods that would more than likely fill my gas tank with the savings.How much of a gross profit does this company need? Obviously with this quarters report sky high pricing isn't the answer.Lower prices equals volume. Volume equals increased same store sales. Oh well, I'm just a consumer of goods they seem to have a handle on the situation......NOT!
>>How about $5.69 for a 18 oz.container of Jiff peanut butter.I can drive 5 miles down the street to Winco, same purchase would cost me $1.76<<
don't believe you that you can get this for under $2. Prove it !
as long as i'm asking for proof, let's see support for the $5.69 as well.
i think that you're bs'ing this board.
When Herkert took over SVU he said the prices were too high. He talked about Oreo cookies and getting "her" to buy it at a fair price. He does not seem to stick to a strategy with pricing. He goes from the SHE project to Hyper Local to ?????. I think the board has to start to ask the question. Stop with the projects and get a startegy to lower prices and stick with it. He has been CEO for a long time and he can't blame Noddle anymore.
Prices at Albertson's in southern California are substantially higher than Ralphs or even Vons and the inside appearance of the stores is dismal.
At least at the competition they will always have one brand or a store brand on sale. At Albertson's, nothing is on sale anymore. You either pay up, or leave.
They're going to go the way of Sears if they don't get on track.
If you can get cheaper prices in a much more attractive store, game over.